Addax Petroleum (fka AXC)

[midtieroil]

There are dozens of prospects left in the JDZ. Do you see anyone rushing out to drill those? The reason they aren't is because that play has been proven unviable by 5 consecutive wells being dry holes.

Lots of people in Kenya have pulled out after just one well in a block. CEPSA might drill a second well. But if that is dry too, the odds go way down that they will drill a third regardless of how many prospects are in the block.

But the bigger question is still whether ERHC will be a partner in any future wells in the block. They are delinquent in their payment on the last well and have no money for the next well. Why would anybody think Kenya and CEPSA will allow ERHC to continue to be a partner under those circumstances? The answer is, they won't. ERHC does not have a god given right to this block even if they fail to perform under the contracts. ERHC can certainly lose their interest in this block and I believe they will unless they come up with something fast.