ERHC Energy Inc (ERHE)

[Stay the Course]

Kobiashi 2000: You are right there is profit oil to start but it is small, but after say 5 years when facility paid off and R ratio is better it does indeed get large. I tried LFG's figures times say Akpo expected 225,000 bopd, assuming on all three blocks (Optimistic!!!), divided by 711 million shares times a PE multiple of 10, get around $15 SP in say 14 years' time, a quarter of that in 6-7 years. Ignores expectations effects.

LFG wondered about the cost oil figure, I'd hazard a guess that each block development could be 4-5 $billion, extrapolating from GOM (e.g. CVX Tahiti) with the radically higher costs than industry saw a year ago. Amortizes over 5 years per JDA rules.

That SP calculation is not too meaningful (read WAG) but right now we don't have any idea of production and reserves.

Really need ERHC to spend a $50-100K on a study like ECL did for Afren a year ago, to get an independent thought out estimate of ERHE's portfolio value. Good outfits to do that here in Houston. Would be great for a road show. Dan, Nicolae: you reading this?