ERHC Energy Inc (ERHE)

[littleBitmoore1]

Interesting that you left her latest post out, troty. This was posted one week ago by bsk:

Post # of 208804
Thank you Fishdog for your hard work in digging out this very valuable information:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47856816

>>Thought for the evening: 1)There seems to be a big rush to get the DP back into the JDZ for some unscheduled follow-up drilling. Immediately, if not sooner. 2)Total, the operator of the Akpo field, is in negotations to buy out Chevron's interest in Bl 1 where there has only been one well drilled, reported to be non-commercial. 3)Bl 1 is adjacent to, and on the Akpo geologic trend with, Bl 4 where there have been several very provocative wells drilled which have probably proven up a commercial discovery.<<

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47438065

>>Like similar fields, Akpo’s reservoirs are located offshore an immense oil and gas-rich river delta, in this case the Niger River Delta. But they differ in one important aspect: they are much warmer than was the case for our earlier Gulf of Guinea deepwater developments, and reservoir pressures are much higher. Temperatures reach 112°C at their hottest and the pressure is 700 bar at its highest. These conditions account for the fact that the hydrocarbons trapped inside them is so light. This "critical fluid" separates into condensate and gas when extracted from the well."

That certainly describes Bl4. With Total's expertise in dealing with deepwater HT/HP conditions, and soon to be operating right next door and on trend, it makes you wonder. Not 'if' but 'when'.<<

Total's potential entry into the JDZ has completely altered the playing field. IMO this game changer has SEO's fingerprints all over it. Just as he brought STP and Nigeria to the table, he is now setting up the consortium that will develop the JDZ. I think it is way beyond coincidental that once it became painfully obvious Addax couldn't get the job done in the JDZ that Total just magically appeared on the scene. Getting Chevron, Sinopec, and Total to sit at the same table and behave themselves is a miracle.

The temperatures and pressures the Pathfinder encountered in Kina must have been a real eye opener for Addax and everyone else involved. The "incident" quickly taught them that they were unprepared for what they encountered and realized the JDZ was an even greater engineering nightmare than what they thought. It's no wonder the drilling depths were so sporadic, they didn't dare go too far into the structure for fear of causing another "incident". This is why I don't put much value into the leaks of what was found. IMO until the structures are reentered any announced drilling results will be incomplete.

With the drilling realities staring them in the face, it's not surprising Chevron is willing to say no thank you. It's not that they don't have the skill to pull off a full development of the JDZ, it's more a decision of not wanting to expend the resources to do it. This very nicely answers why Chevron let blk-1 sit idle after OBO-1 was drilled. It also explains why OBO-1 took 60 days to drill. They had a monster on their hands and it caught them by surprise.

It is a very natural fit for Total to step in and take the reins. They are the only company in the GoG that has dealt with the challenges the JDZ geology presents and they have an infrastructure design that has proven to be workable.

I don't think I am going too far out on a limb predicting that these developments are what is causing the delay in announcing the Phase 2 development plan. I am more than content to wait to see what transpires from the negotiations that are taking place.

As an outsider looking in, it seems logical to expect Total wanting a motivation to develop the JDZ. They are going to need more than just blk-1 interests, they are going to have to have a stake in the other blocks as well.

Is ERHC the answer to that little dilemma? Unfortunately this story will unfold one step at a time. Before ERHC comes into play Total will probably want to see the blocks reentered one more time.

bsk