ERHC Energy Inc (ERHE)

[brez63]

Opus, at a glance 16B sound high. This is the way that I look at it.

1) Massive amount of fuss over JDZ = Must have oil
2) First hole got oil = either they couldn't miss or validates data = Must have oil
3) Conservative Seismic predicted possible 14 B = More than likely have oil
4) Adax leading a consortium blck 1-4 = Must have oil
5) All companies looking for deep rigs = Must have oil
6) Multiple "birdies" from different sources of elephant fields = Must have oil
7) Oily, 11B block 1 is low (take it with a grain of salt, but) = Must have oil
8) CVX given it its best shot to hurt us = Must have a shiite load of oil

All in all, perhaps 16 b in block 2,3,4 could be a little low! Our oil is carry free, maybe my estimate of $6/ is also little low.

In today's context, I find $23 PSP borderline low. Last year I would have said $10 was borderline low. Next year, I'll say $40 is border line low. I think SEO is saying the same thing. But more importantly, in my opinion, CVX, SNP and any other caller are thinking that this is going to get out of hand and out of reach pretty schnell! So, they either chuck a rock and buy us out now, or step out of the way and watch us become the quickest oil company in history.

Brez

PS. I'm still not a fan of Buy in theories, it just doesn't make sense to me!