ERHC Energy Inc (ERHE)

[ERHClongtimer]

Ebiye update

Earlier I had commented on the name "Ebiye" showing up on Peter's Namibia presentation:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=87566841

I asked Dan about this and he had the following to say:

Ebiye is not a lead or a prospect, it is just a place on the map. What that image shows is the post-drilling understanding of the JDZ and the explanation for why the five wells drilled to date did not find oil. On the right side of the image is the area to the north of the JDZ where several major oil discoveries were made. You see that the faults extend down into the sub-detachment zone (denoted by light blue line), which creates a migratory path for the oil (denoted by black lines). Analysis of the drilling and seismic in the JDZ has determined that the faults do not extend into the sub-detachment zone and there is no migratory path for oil. The exploration model used in drilling the JDZ was similar to what was done successfully to make major discoveries to the north. As was the case to the north, the JDZ’s seismic showed direct hydrocarbon indicators that were very compelling. However, the drilling found that the hydrocarbons were methane gas and not oil. That’s not something that could have been determined without drilling. Since the faults in the JDZ don’t extend into the sub-detachment zone, that exploration model does not work in the JDZ. The new exploration model would require mapping possible traps in the sub-detachment zone. - Dan Keeney

He had this further to add:

I don’t mean to imply that any additional exploration is planned. At this time we continue to await a determination by the Joint Development Authority regarding how exploration will proceed. My explanation is simply a description of the current understanding of the JDZ and the exploration model that would be necessary going forward. Much additional work would be needed in order to map the sub-detachment zone and, at this time this has not been agreed upon or planned. - Dan Keeney

So that pretty much tells us where things stand in the JDZ... in limbo, it would seem, and without any new prospects at the moment. Some have said in the past that they didn't drill deep enough, and that may be the case; but at the time, they evidently did not have any targets mapped that deep.

So our hopes for near-term results are pinned on Kenya and Chad at the moment. Will be interesting to see if any new tidbits are provided tomorrow during Peter's presentation (though I don't expect anything earth-shaking to be revealed). - Longtimer