ERHC Energy Inc (ERHE)

[midtieroil]

That is a pretty broad statement that is mostly false. The Lokichar basin where about 1.3 billion bbls of oil has already been discovered is only slightly profitable at these oil prices if a pipeline gets built through that block.

That pipeline is planned to go through that basin on its way from Uganda. There is some talk of another pipeline from South Sudan that may go through ERHCs block but that pipeline is even farther away from being reality than is the one from Uganda.

Combine that with the fact that the best reserve estimates from ERHCs block come in at 600-700 million bbls with no certainty of a pipeline and with these oil prices and it becomes difficult to predict how much oil it would take for ERHCs block to be profitable. One thing is certain. It will take a much larger discovery to be profitable now than when oil was $100. When getting it out of the ground is at least $15 and transportation at least another $5 and, as you can see, the margins start getting really tight at these prices. What was once profitable may not be now and, yes I do believe oil will stay down for a long time.