ERHC Energy Inc (ERHE)

[Southern Man]

Swala gave more information than just "encouraged" and they only have a 25% interest.

Swala Energy Limited has provided an update on the 2D seismic program underway in Block 12B in Kenya. Swala has a 25% equity interest in the block. The other JV participants are CEPSA (with a 25% interest) and Tullow Oil, the operator, with a 50% equity interest.

The seismic program over Block 12B has been completed and the preliminary interpretation of the results is positive. A total of 350 km of 2D seismic were acquired over Block 12B. The initial results based on preliminary processed data indicate the presence of large-scale faulted structures across the entire basin, together with the presence of shallow volcanics, a feature of the East African Rift System. Initial results, supported by Swala’ s earlier reinterpretion of available legacy data, suggest a Neogene basin with possible 3,000 m of sedimentary fill.

The JV participants shall now complete the reprocessing and interpretation of the data before deciding whether to proceed into the third year of operations.

Dr. David Mestres Ridge, Swala’ s CEO, said, “These initial results from the seismic program are very encouraging in that the extent of faulting in the basin suggests the possibility of structural traps both within and at the edges of the basin.

“We look forward to updating the market once the reprocessing and interpretation of the data has been completed which should give a robust understanding of the trapping potential.”