ERHC Energy Inc (ERHE)

[bayfisherii]

Mid,

You must have scrambled and plagiarized all night to come up with this analysis. I personally do not think you have ever shown yourself to have enough understanding of the mechanics and economics of oil to come up with this on your own.

As to your 1st point, in very few instances between royalties, land usage fees and taxes do you ever see a number much under 50% on the production economics. And even so the taxes are based after costs and will include all variable as well as fixed costs associated (and this is important so write it down) with drilling as well as on-going production costs. Where you came up with a 20% tax figure I cannot fathom unless you are in an area so uneconomic that incentives are being given to induce companies to explore there.

As to your second point, the 14 billion figure was never validated as an actual volume available. It was appropriately labeled as the total amount of risked and unrisked reserved that could be in the JDZ that had currently been licensed. Who knows what we will find ‘maybe more’ but ‘probably less’. The point that I was making is that if the $25 per proven reserve figure was accurate then all of a sudden our economics get enormous quick. ( I am still looking and hoping that we can validate the $25 number)

As a suggestion MID, stay off topics that you do not have even a modicum of knowledge or understanding of.