ERHC Energy Inc (ERHE)

[Krombacher]

midtier, may I play devil's advocate with you? Here goes:

1) Risk - Erhc's general level of risk can be measured by the risk incurred via the JDZ/EEZ. These risks include, Sinopec postponing drilling indefinitely, running out of cash before Sinopec is ready to drill, etc.

Are the marginal fields projects therefore above or below the general level of risk that ERHC has assumed already with the JDZ/EEZ.

I would purport that the marginal fields are actually less risky than the JDZ/EEZ and therefore average down the overall risk of the company. How do I come to that conclusion? By the fact that drilling in the marginal fields are immediate, and the oil there is already proven. Yes there are MEND issues, but as a whole which is riskier, marginal fields or JDZ/EEZ?

2 - Competency to select properties. How is the competency requirement for marginal properties any different than the competency required for selecting the blocks in the EEZ or JDZ? Seems to me that if you accept the competency level of Peter N in the EEZ/JDZ then you may also do so in the marginal properties.

I would say you would need equal competencies for either project...maybe slightly more so for marginal fields, due to the fact that you have to calculate break-even to see if the marginal fields are worthwhile, but surely PN has that math ability?

Whereas the differences between the two projects when mitigating the risks in the JDZ/EEZ perspective actually seem to be beneficial.

3 - Dilution - you are diluting some of the high risks mentioned above with regard to delays in the JDZ/EEZ replaced with immediate revenues. And it is only with revenues that you will get on an exchange like Nasdaq, which takes me to the next point:

4 - Ability to market to investors - wouldn't investors flock to a company with positive earnings and actual revenues?

Krombacher