ERHC Energy Inc (ERHE)

[redinvest]

SFreed comments on B 1 over at the EF:

Block 1


Exxon out of entire JDZ. They couldn't run the circus, so they folded
their tent and went home. Their meddling is over and it will show
sooner or later.

Their position in Block 1 has been on the market for ages. Why no
takers? No company large enough to be there wanted to be second to
CVX. No company who was interested had other positions or a hope of
other positions in the area to spread costs. Under the agreement with
CVX, XOM couldn't show as much data on the block as they'd like.

Why did Addax bite? They bought for exactly the reasons others didn't
or couldn't. They waited for XOM to exhaust their list of buyers and
patience.

Addax got it cheap, no question. Is that a reflection of the quality
of the block or more on the willingness of XOM to stay in a block and
area where they have no control? More the latter.