ERHC Energy Inc (ERHE)

[dbernet]

You guys are both assuming that 2, 3 and 4 will be developed. So am I or I would not be here, but there is certainly some risk they won't be developed. Maybe SNP is waiting for a clear commitment from Total before even considering a buy out. They and other Chinese entities are buying mostly proven reserves. Why pay large amounts for something that is a possible bust? They may have to pay more later, but then they know better what they are getting. The risk of no development may be low, but if it does not happen, SNP officials would be in a very bad position with the central government if they paid billions for a bust. I don't right now see a compelling reason for a buyout from SNP or any Chinese entity. Particularly at Offer's price that we all assume is at a major premium to the market. At some point further down the road, I think Krom's numbers will come into play, but not yet.

Our current share price says it all. I think Total will commit to block one development in the next six months to a year, but who knows when for our blocks.

db