ERHC Energy Inc (ERHE)

[Strategyone]

Some food for thought:

I enjoyed reading the PR today by Sinopec/Addax “Sinopec Addax strikes oil at Nigerian Block” regarding the UDELE-3 well of block 137 off Nigeria. Several good pieces of news to come out of this regarding ERHE. First, this should stop the conspiracy theories of Sinopec never releasing news. I remember reading another posters view (I apologize for forgetting which poster deserves credit here) a while back that said they were not concerned because they felt Sinopec had to prove the acquisition of Addax to be a prudent investment and therefore, the company would be publicizing its’ oil and gas finds. It looks like this poster has been proven to be correct. I think now we can all put to rest the incorrect assumption that at least Sinopec may never release news on finds in the JDZ!

I also decided to research this find on Block 137 to maybe shed some light on the history to provide some possible insight as the future of JDZ blocks 1 – 4. I found some interesting finds:

From Rigzone there was a good article on 7/12/2007 regarding UDELE-2. Full article here:
http://www.rigzone.com/news/article.asp?a_id=47563

Quote from this article by Jean Claude Gandur - “I am very pleased that the exploration focus we initiated last year has already started to produce positive results. ……..I am particularly excited at the potential demonstrated by our exploration results in OML137, including the potential for significant gas exports.”

From broadcast transcript on 3/24/2009 regarding Udele West. Full transcript here:
http://goliath.ecnext.com/coms2/gi_0199-10316228/ADDAX-PETROLEUM-CORP-Capital-Markets.html

Quote from this transcript by Jim Pearce, COO of Addax – “Our real growth potential in this area is OML137. We had two discoveries; that is Ofrima and Udele West. Udele West was mostly gas.”

From this same transcript a quote by Jeff Schrull – “We have made the Udele West gas discovery …..since we shot the 3-D; and now we have the queue in place to continue drilling.”

Does any of this sound familiar? So according to history, Udele West was originally a “gas discovery” and they drilled Udele-3 and lo and behold Addax/Sinopec “strike oil”.

This is just further proof of the potential that could be discovered in the JDZ as well. I am looking forward to Phase II if Sinopec/Addax decide it is worth exploring…

Good luck all