ERHC Energy Inc (ERHE)

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I believe its important for a review of this post. Some have noted the comments in the AFREN report and dismissed it as error. I have not. First, one must read this 8-26-06 Addax email response to TheTuneMan (I have boldened what I think has direct relevance):


Posted by: THETUNEMAN
In reply to: None Date:8/25/2006 2:11:40 PM
Post #of 104179

Here is my e mail response from my contact at ADDAX in regards to my question:"Could you please advise me if Addax has firmed up any plans or has outlined any schedules for drilling in the Nigerian Sao Tome' Joint Development Zone? Or could you give me an update as to any activities in this area. I was impressed with you companies acquisition of rights in this area ( JDZ) but I have been unable to find any follow up on these activities.:
RESPONSE:
"Thank you for your email and your interest in Addax Petroleum.

In terms of our involvement in the JDZ, Addax Petroleum recently hired a deepwater specialist to head our JDZ exploration group. Jeff Schrull was formerly with Chevron and had, in fact, headed up their involvement in the JDZ. Jeff has subsequently filled out his team and they have been working on an exploration plan for Block 4. In addition, we have taken the lead to coordinate the operators of Blocks 1-4 (including Anadarko, Sinopec, Chevron and ourselves) in order to jointly contract a deepwater rig to drill the first 6 exploration wells (3 of which are on Block 4). As you are probably aware, the market for deepwater rigs is very tight these days - but we would anticipate contracting a rig in the coming months and expect to commence drilling the 6 wells as early as 2008. We will also continue looking for a "rig of opportunity" and are prepared to drill the first well on Block 4 earlier than 2008 should a rig slot become available."
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Nigeria - JDZ Block 1
The block lies in the extension of the proven and prolific deep water plays, discovered to the North and West in Nigeria, and its gross potential is estimated at 1 billion boe. Afren holds a 4.41% net working interest in the JDZ Block 1 through a 49% equity interest in Dangote Energy Equity
Resources (DEER), which was acquired on 29 March 2005. Chevron, the Operator of Block 1, drilled the first exploration well Obo-1 in 1Q06, to 1,750m water depth with the Deepwater Discovery drillship. The well encountered a total of 150ft net oil and gas pay and was declared a Discovery. Afren, together with its partners Addax, Sinopec and Anadarko, has contracted a drill ship Aban Abraham for its drilling programme on Blocks 2, 3 and 4, which will commence in 2008.
http://www.fox-davies.com/Reports/Afren_Initiating_Coverage_August_2_2007.pdf


My point? If agreement was reached (as Addax indicated) and Jeff Schrull and team from Addax are going to " lead to coordinate the operators of Blocks 1-4 (including Anadarko, Sinopec, Chevron and ourselves) in order to jointly contract a deepwater rig to drill" then AFREN would be considered a partner with Addax, Sinopec and Anadarko as the 8-2-07 Afren report states.

So, a joint effort with the AA? Definately saves duplicating very expensive exploration costs for each blocks (1,2,3 and 4) operators.

Check out this June 2007 article which states in part:

"Addax's head of exploration Jeff Schrull said the company's key partners in blocks 2, 3 and 4, Anadarko and Sinopec, plan to drill the most likely exploration prospects that would generate a fast-track development, probably based on a cluster of finds tied back via subsea wells to a central host platform."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=20518477

Very specific. "fast-track development, probably based on a cluster of finds tied back via subsea wells to a central host platform. Hmmmm...JDZ operators working in unison? It sure would seem so.