ERHC Energy Inc (ERHE)

[Krombacher]

I agree. I know it's a 180 degree shift in my view, but it is clear to me now that the EEL report is garbage

1) They found nothing commercial (unless TOTAL is involved).

2) They need the 6 months to analyze whether they can a) have enough hydrocarbons for Total and b) if they can get Total to play.

3) TOTAL is not going to do it all in one shot. You're talking billions upon billions all at once. Not going to happen. Total, like any other company taking on a large capital project will do it in phases! That means it will do block 1 first, then move on to the other blocks. This will take a LOT of time, and ERHC will need cash, and in the meantime we will wait far too long.

There is only one saving grace: SNP has to either declare Phase II or lose it all So will they declare Phase II or treat the entire exploratory drilling as a sunk cost and get out.

It all hinges on Total. Our entire investment in ERHC and ERHC's future all hinges on one company: Total.

Total is in the cat bird seat. They are ROYALTY.

Krombacher