ERHC Energy Inc (ERHE)

[Stay the Course]

Semi annual post and a word of caution.

Despite all the latest technology and 3D seismic, dry holes have occurred offshore Nigeria, e.g. were two in OPL 256 adjacent to JDZ block 3. There is no guarantee that the first holes in 12-18 months will be commercial discoveries. They could be (1) dry, (2) obviously non commercial, (3) maybe commercial after more drilling, (4) BINGO Major oil new discovery, or (5) accidental gas discovery.

I thus have to wonder about these “we’re golden” postings of late.

Our HOLDING CO. may one day have an “Akpo” but takes a discovery in the first place plus several wells drilled to get to that value. The asset based upside for SP certainly is better with a starting timeline now roughly in place.

There have been multiple opportunities for ERHC to become an oil company in the last 3-4 years but it has not happened. No interest in building a Nigerian oil co. like say Afren. Ledbetter a strange commitment, maybe Emeka needed an oilfield hand to cover him in partner meetings. The “operating oil company” upside thus not there for ERHE’s SP.

But combine the holding company’s assets plus a serious operating oil company, now there would be a sight to behold in a 2-3 years, with SP rising in anticipation of the effects of true operating management. Then bsk’s dream comes true!

No reason to sell, believe targets may take longer than the board generally communicates. The “Stay the Course “ alias is no accident for this stock!!! I have no inside track other than a career in deepwater E&P business. All is JMHO. So back to other things this beautiful Sunday afternoon in Houston. I have appreciated the many informed viewpoints on this board, the humor and the humanity.

GLTA. Might post again in October.