ERHC Energy Inc (ERHE)

[Stay the Course]

Magic: You have done the board a service in realistically spelling out what has to happen just to arrive at the first well for each "ERHE Block".

1. After that there is the process of deciding on the field development plan and lining up the production solution which takes additional and longer time.

2. This morning a supermajor told me how they had just drilled two exploratory wells in the ultra deep in Gulf of Mexico and it costs roughly a million dollars a day for the complete spread (rig, helicopters, boats, fuel etc etc).

3. So ERHE blocks in similar water depths will be much more expensive than projections a year ago. May be delays in finding deepwater rigs in today's market. Anadarko may be better placed with existing suitable rig commitments that Addax and Sinopec with less similar commitments. Their lesser deepwater experience is a challenge.

4. All the more need therefore for ERHE management to come out and outline progress it sees ahead.

5. Absent that, SP may IMHO languish as we wait on well results to trigger SP growth like we all believe will one day happen.


Stay the Course - if you have a LOT of patience