ERHC Energy Inc (ERHE)

[Stay the Course]

Certainly Petrobras have had the most success in subsalt drilling and so have to be a leader in it, but here in GoM the BP operated Kaskida discovery in 2006 is a big one and there have been other wells drilled in the subsalt in GoM by other US operators.

Operators are getting better at seeing what may be there below the salt. But it is difficult and expensive to drill in adddition to the technical challenges, particularly so in US, e.g. $200+million/well in GoM.

This salt thing is serious, can mean drilling through a mile or two or more of it and the biggest and best rigs can barely just do it in GoM! Then if a discovery, high pressures and rocks that have no history of production.

So it can quite changes the risk/return economic equation in planning field developments and financially.

I don't know anything about presalt prosectivity of EEZ but if this is something being looked at in Angola, obviously needs consideration up the coast.