ERHC Energy Inc (ERHE)

[Southern Man]

Please recall CEPSA does not like to be rushed. That was their primary reason for leaving Swala. In my inquiries a 6 month window was MINIMUM to decide how to proceed after seismic. This seismic data area is also huge and could contain 3 different basins at least. So, IMO its a complicated large NEW area that requires some deep thought and processing.

I think in 2 or 3 months they will announce to drill one well and do 3d in a few other areas. This current news release is just restating the FACTS and officially announcing phase 2 is underway. CEPSA sets the timelines IMO. If the data looks really good we will hear more very soon. News will be approved by or come from CEPSA, imo.

Given the political, medical and social unrest in the area combined with major cash outlay from CEPSA will take time. It is possible they sell the whole block as well, as hot as things are Tullow/Africa Oil may just buy us out/farm in etc... anything is possible at this point. The data is either very valuable or uneventful, we will be the last to know. Given the current stock price the data is not pointing to any life changing petroleum finds at this time or is imcomplete.

"it means they haven't studied the 2D enough to conclude one way or the other."

Under the second phase of exploration, which lasts a further two years from the end of the first phase, CEPSA Kenya Limited (a wholly owned affiliate of Compañía Española de Petróleos, S.A.U. (CEPSA)) and ERHC are required to either acquire 3D seismic or proceed directly to drilling one exploration well during the additional two-year exploration period.