ERHC Energy Inc (ERHE)

[tryoty]

It's a process, we all know that. A discovery give's ERHC the opportunity to get full carry on the rest of development similar to what Africa Oil did with Maersk after Ngamia-1 showed proven:

"The value of the deal is split between an upfront farm-in payment of $365 million, including exploration costs. Future contingent payments of up to $480 million will be made by Maersk Oil for the Lokichar Project"

Full disclosure... this deal came almost 3 years after Ngamia-1 and after several follow-on discoveries.

Africa Oil had 50% of the block and gave up half for the ~$800M farm-in fee/carry. They retain 25% of the block.

If ERHC's block is similar, ERHC could see $560M and retain 17.5% of their block... all things being equal in drilling results.

With an assumed 45M shares out, that $560M is $12.44 per share, and the retained 17.% would be double/triple that once it was "developed".

If CEPSA/ERHC's block mirrors the results at Ngamia, $30 per share is a fair value. Ignore the "words". The math is sound.