ERHC Energy Inc (ERHE)

[Nightdaytrader]

Total didn't pay billions of dollars for JDZ blocks, non-JDZ blocks, or STP blocks... Nobody would ever do that without first drilling. Find me one place on earth where somebody paid billions for a few blocks, before ever drilling a well... You can't.. That is just nonsense.

As for the block 4 asset being worth $500M, I don't know if Kosmos really valued it at $500M, but if they did, that was probably based on other blocks having oil, and maybe they could tie them together, and extract the oil. Again, this water is 2 miles deep. Do you know how much it costs to drill exploratory, appraisal, and production wells? Do you know how much it costs to extract that oil or natural gas? The production costs are huge...

An asset is only good if you can monetize it and be profitable. Tiny minnows like ERHC have no leverage because they don't have the technology and resources to extract the oil... The big oil companies can just wait them out...

ND9