Addax Petroleum (fka AXC)

[midtieroil]

The fact is that I invest in many small oil and gas companies like ERHC. While predrill run-ups do sometimes happen, they have been almost non-existent in the last two or three years. The mania over small exploration companies went away because of low oil prices and because most of these exploration wells come up dry.

It really is important to spread your risk on small exploration companies and invest in several. Betting it all on one company while desperately hoping for a predrill run-up is a terrible strategy. Maybe someone can get lucky, but the odds are heavily against it.