ERHC Energy Inc (ERHE)

[midtieroil]

We are talking about Total now because China's preference is now to partner with other oil companies because they learn from their association with more technically advanced companies and because it is more politically acceptable to own part instead of all. So China has enough of the JDZ already and probably does not to want to cross that political line where people start to fear they are taking over everything.

If you don't remember what happened when CNOOC tried to buyout Unocal take a look at it. It changed the way the Chinese do business. They learned an important lesson from it and have adjusted their strategy accordingly.

I've been saying for a long time that I thought Sinopec might not want to buyout ERHE but I was about the only one. I was also the one that said Chevron and Exxon would probably end up not being involved. The Total/SNP partnership makes a lot more sense and it is in line with both company's strategy. I think it makes too much sense for it not to happen provided that ERHE wants to sell.