ERHC Energy Inc (ERHE)

[midtieroil]

I can't agree on a couple of things. First, I don't think Grandur made a mistake. I was talking to a person who contracts deepwater drilling rigs yesterday. For a 6th generation semisubmersible rig the price has come down about 30%. These rigs drill in very deep water and are just one step below the drillships. Deepwater rig prices ARE coming down. There just haven't been enough new contracts for the drillships yet to establish a new price for them. When I look at it stricly from an Addax viewpoint, I think Grandur was right in not overpaying for a rig. We at ERHE may want him to drill but if he can save 30% by waiting an additional year he needed to do it. That could result in savings of $15 million per well or more. I think he did the right thing for his company.

The second thing I just can't agree on is that there is some grand conspiracy to keep drilling from happening in the JDZ. Sorry, but I just don't believe it. It is amazing to me that some people continue to think that everything every oil company in the world does revolves around the JDZ. It doesn't. This is one small area in a very prospective part of the world. Drilling has been delayed due to a worldwide shortage of drillships. It is not some grand right wing conspircacy to bankrupt ERHE and take away their rights and their oil. It's just that there is a shortage of drillships, nothing more and nothing less.