ERHC Energy Inc (ERHE)

[bayfisherii]

Balance,

I think you cannot read EEL's commentary and not be excited. Companies are generally extremely careful about what goes into thier annual reports as they do not want to under set expectations as well as oversell their expectations. I have to think that while this did not come from the comapny actually drilling the well the results will have to be similar to what we will see from the exploration company. All in all a P50 chance that we have oil or oil equivalents that comes to 5.1 Bbl's; and that in only one of the fields drilled in Zone 2 is very significant. It becomes apparent that there may be more to the Meandering stream dialog that has been off and on discussed over the last 2 years.

Frankly I think the reason ERHC is not talking is because they are negotiation a big deal with other signifcant interests (MAJORS) and are required to keep silent about all aspects while the deal is completed. I feel there is a good chance that ERHC would simply sell their position (lock stock and barrel) in Zone 2 for a certain sum of cash and continue to work on developing the remaining 6 zones they have interest in in the JDZ and the 4 zones they have interest in in the EEZ. There are many reasons why this would benefit the JDZ as a whole and ultimately benefit ERHC again in the future. It is my hope that they do this by setting up a shell company for Zone 2 assets and allocating stock based on the shares that current owners have, that would allow a significant portion of the money to be given back to the current shareholders while allowing them to keep thier resident shares intack. This would certainly allow SEO to receive a significant sum of money and allow him to invest it in the infrastructure buildup going on in Sao Tome.

Finally I still think investors are undervaluing the value of ERHC's 22% share of zone 2 based on EEL's annual report. ERHC's share of the Kina alone looks to be worth over 10 Billion. And if ERHC's is going to sell out of their position in all the other oil bearing formations (in Zone 2) without the chance to drill how do you value that roll of the dice. This is probably why it is taking so long to get the deal done.

Based on EEl's Zone 2 report I cannot see ERHC selling thier mineral rights in Zone 2 for less that 12 to 13 Billion dollars and their is a solid chance it is more.

I think we are solid just do not know how solid yet.

JMO

Bayfisher

I still think we have a few more weeks to wait on this news