ERHC Energy Inc (ERHE)

[mccir]

In my opinion, ERHC will be effected by how service companies will perform work schedules, possibly slowing down critical procedures and not taking as many risks, increasing time spent on location. Companies will set up more redundency to keep from creating dangerous drilling enviornments which were part of the problem in the BP rig failure. This will eventually add more costs to finding oil in deep offshore drill locations. Companies may be slow to drill in areas of high pressures if low levels of oil or usable gas fields were located on initial exploration holes.

The JDZ is has been shown to be an area of high gas pressures with overlapping structures of high gas zones. So far we have witnessed low levels of oil, and the companies incharge of reporting have been slow to announce findings. It is possible with the BP explosion the JDZ now becomes an area of slower exploration drilling increasing the time for possible developmental drilling and production. This is just a sample of what could happen.