ERHC Energy Inc (ERHE)

[ERHClongtimer]

Gremlin, thanks for posting. The mere fact that CEPSA has committed to phase 2 shows they like what they see. We already know they aren't hesitant about walking if they don't (per the incident in Block 12B).

Dan's elaborative comments make it apparent that there are areas of high interest in Block 11A, apparently enough that drilling will happen sooner or later. At this point, the two options are, 1) drill, or 2) shoot 3D (and what would be the point of that if you did not intend to drill?).

So yes, the second phase of exploration is underway. The contracting parties are in the process of identifying the most highly prospective areas through processing, interpreting and analyzing the data that has been gathered to date. They will then determine whether additional 3D seismic is needed or if they have a high enough level of confidence with the existing data to move directly to drilling.

I tend to agree with JSC that they will do 3D first, because of the complexity of the block's geology (volcanics). But it would be a really good sign if they skipped the 3D. Entering phase 2 is a bigger step than I think some appreciate. And ERHC continues to confidently plow ahead with their other initiatives. Another good sign. - LT