ERHC Energy Inc (ERHE)

[2IRAs]

Lowering cost of deep water drilling helps us now because it makes it more desirable to our potential partner to sign with us because the costs are low now and may not be low later on. Contracting for seismic now and a rig soon after would save our partner tens of millions of dollars and a signature bonus for ERHC now would be an incredible windfall for us. My other points I can back up with links. I read that exploration money is staying in Kenya and Chad. I read that deepwater rates were cut in half. I read that seismic and drilling rates in Kenya have come down. It is a fact that our business model improves when exploration costs come down. It is a fact that our model is to sell the license after discovery which is down the road a year or so if it happens at all. The other negatives are well known to all of us. If ERHC goes out of business we will all just disappear and end of story so who cares.

I was one of the first people on the board to say that drilling would continue to be attractive in places like Kenya given the lower oil prices before the articles and Peter's discussion on it came out saying so.