ERHC Energy Inc (ERHE)

[YankeMike]

kobi: That's a great point that Obo-1 was drilled more than a 1/2 mile deeper than the wells in Blocks 2 through 4 especially when you consider the following...

The Obo-1 discovery well established the presence of oil in the SB 8.2 Lower and SB 13.8 Lower sandstone reservoirs and the presence of gas in the SB 8.2 Upper sandstone reservoir. An OWC was observed in the SB 8.2 Lower interval (Figure 68). Development plans for the Obo Discovery are not currently budgeted or approved by joint venture partners and the government, and estimated recoverable oil volumes at Obo may not be economically viable for a stand-alone development; therefore, these volumes are considered contingent resources.

The Obo-1 well, drilled by the JDZ Block 1 Joint Venture in 2006, discovered 53 ft of net gas (SB 8.2 Upper Reservoir) and 120 ft of net oil (SB 8.2 Lower and SB 13.8 Lower Reservoirs) based on our analysis of well logs (Figure 68) and MDT pressure data.

Reservoir quality appears excellent in the Obo-1 well, with porosity generally above 20 per cent. And as high as 35 per cent. and with permeability typically in the range of hundreds of millidarcies with occasional sandstone intervals over 1 darcy.

No DST was run on the well, but several oil and gas samples were recovered during MDT testing. Oil in the SB 13.8 Lower Reservoir was 45° API gravity with a GOR of 2,073 SCF/STB. Oil in the SB 8.2 Lower Reservoir was dead oil with 30.5° API gravity.

Besides Obo-1, there are 6 other prospects and 2 other leads in Block 1.