ERHC Energy Inc (ERHE)

[tryoty]

alwright, P/E won't be a meaningful measure for 5-7 years, IMO. It'll take 3-5 years for any pumping to begin and another couple to get all 3 blocks going.

But to get an idea of where were headed...

Assume 2 bbl in each block.

AKPO has 1 bbl and produces over 200K bpd, so assume 400K bpd PEAK per block (7-9+ years out), or 1.2M bpd if all fields peak around the same time.

ERHE's average percentage of profit oil for all 3 blocks is roughly 1.5% when cost recovery is at it's peak, rising to roughly 6% when costs have been recovered.

That's 18K in the beginning up to 72K bpd best case if all fields peak simultaneously.

At $60 per barrel, that's $1,080,000 per day, up to $4,320,000 per day peak. 365 days in a year, but I assume there's downtime for maintenance, so let's say a year is 300 days.

With $60 oil, that's $324M to $1.296B peak revenue (best case). Subtract out whatever you think ERHC's costs will be at that time and you'll get an idea of ballpark earnings potential.

All predicated on 2bbl each in blocks 2, 3, and 4.

Add in blocks 5 and 6, the STPEEZ, more than 2 bbl in each block, and $80-100 oil and, well, you get the picture. I would say expectations of earnings around $1 per share in 7 years, with potential of $2 or higher, would be considered reasonable.

92,000 things can change in 7 years, so chalk this up to mental masturbation.