ERHC Energy Inc (ERHE)

[Krombacher]

Let's think this through step by step...

If Total sent in zero ships, it would mean one or more of the following:

1) Jaca-1 was totally uncommercial... time to cut bait and move on

Or

2) Jaca-1 was decent, but we're just going to make Erhc a cheap offer at this point since we don't know how good block 4 is and so that uncertainty allows us a lower offer.

If Total sent one ship to drill then... it would mean one of the following

1) the Jaca-1 result we're very compelling and so no way Erhc will accept a low offer. Jaca-1 has some great data, and we just want to confirm with one more well in Block 4 so we're not overpaying ERHC

Or

2) Jaca-1 was fantastic, let's go ahead do one producing well to prove up the area and pay Erhc shareholders dividends before finally making a buy out offer

But what does it mean if Total sent out two ships?

I think that action communicates something waaaay different..


..Don't you?

Krombacher