ERHC Energy Inc (ERHE)

[tryoty]

jbofthecloth...

The JDZ was STP's first rodeo. They are desperate for money, very desperate. Let's review what happened...

1.) They awarded block 1 to Chevron/Exxon.

They got 1 well drilled, results were tight holed and have been for two years, and they haven't heard when the next well will be drilled.

2.) They awarded block 3 to Anadarko.

They've gotten nothing but silence in the two years since.

3.) They awarded block 2 to Sinopec.

They got 2 slots with the Aban Abraham as soon as it's available.

3.) They awarded block 4 to Addax.

They got 8 slots with the Aban Abraham as soon as its available and a strong push by Addax to find a rig of opportunity to drill as early as Q4.

STP can't be too impressed with Big Oil at this point. They only outfits making good on the fast track promise is Addax, and to a much lesser extent, Sinopec via the rig Addax signed.

If you were desperate for cash, had everyone agree to fast track your properties, and reviewed these results... who would you go with in the next round?

The answer is Addax. It's nice that ERHE has a strong relationship with Addax, and the two 100% blocks + 15% of the two best available doesn't hurt.

IMO, you are making a mountain out of a mole hill. Petrobras certainly will come in and promise to fast track, but there's still that legal award thingy that ERHE has that has been upheld in the World Court. To attempt to nullify is to delay the EEZ for years, AND to send a message to the world that you don't honor your contracts. Not likely they'll do that.

IMO, ERHC will sign PSC's with Addax and STP will see far more action in their waters than they would if they attempted to change anything. The only action STP has seen since OBO-1 has been Addax's effort, and ERHC will bring them to the table again for the EEZ.

JMHO.