ERHC Energy Inc (ERHE)

[bsk2007]

It will be interesting to see if Mr. Ledbetter comes up with some good prospects any time soon.

With $30 million to spend on low to medium risks plays, to me it means they are looking for some on-land prospects.

$30 million to spend on an off-shore project won't get you very much. A few pecentages in some wells that probably wouldn't come on line for years down the road. I don't think this is what SEO or Ledbetter have in mind.

If they do decide to invest in an off-shore play, it tells me they are concerned about the hostile environment in Nigeria.

Drilling on land is a whole lot easier than the off shore stuff. I know an insurance salesman who decided he was going into the oil business. He got a bunch of investors together, got himself a rig and a crew, and punched a hole in the ground. Nothing to it. Of course he's back selling insurance again, but my point is that it takes a whole lot less money to drill on land than it does off shore. Since it's relatively cheap to drill on land a dry hole won't bankrupt you like it could off shore.

My hope is that Ledbetter knows how to get the job done without having to partner up with another company.

If he does partner up, I hope it's because that company has some good looking prospects but doesn't have the money to drill. With his supposed expertise, it would be borderline pathetic if ERHC has the prospects, but partners with an oil company to do the actual work.

The bottom line is you can drill a lot of wells and lay a lot of pipe for $30 million bucks.

bsk