ERHC Energy Inc (ERHE)

[emptynester1]

The real story...................IMO

After taking a step back and looking at all of the updates, statements by ERHE etc...I have come to this conclusion..

This whole project is NOT about drilling 5 wells and hoping for a commercial hole. That is NOT what they are looking for at this stage(although it would a nice thing) of the game. That's why it's called Phase 1. Because there are three phases to this project headed by ERHE/OFFER/SNP. They are reviewing all of the data that they started with (Seismic and expertise) and combining that initial data with the new data from the 5 wells and coming up with a plan to develop this JDZ into a commercial oil/gas producing zone (phase 2 and 3). This takes time, money and a lot of expertise. Because of the deep water, it is VERY expensive to drill holes. They can't just keep wild catting and hope for a gusher, they will not be successful and be broke in no time..Up until Seismic data this deep water stuff was not affordable.
So, the bottom line is this PROJECT to develop this ZONE is going to take time, 1-3 more years to get to the production drilling phase but it WILL happen. When they actually have great data and can pinpoint areas with the best possibility for commercial oil production. The thing we need to hear are "we are going to start phase 2, we have found evidence of a commercial ZONE (not hole) and we are persueing the project at a quick pace(evidence EEZ picks). They certainly found good data to proceed, that is why all of the smiles..not because they hit one commercial hole...THEY FOUND A COMMERCIAL ZONE!!!
This drill data is important only to proceed to phase 2 and 3. It doesn't matter if 1, 2, 3 or none of the individual holes is commercial.. again it matters to the commercialization of the JOINT DEVELOPMENT ZONE...So (including myself) need to stop hoping for gushers one these 5 holes, I'm afraid we will not see that type of news..
But this all looks great, I think the news when it comes out will be great, not what we are looking for but great news for the continuation of this very lucrative project.
One more thing, IMO I feel that OFFER may be trying to cut a deal with SNP and subsidary of them but with control decisions still in the hands of ERHE...I don't think SNP is willing to do that..
agian IMO