ERHC Energy Inc (ERHE)

[Krombacher]

I think DeGen's scenario is more likely. Total will want to do more drilling in Block 1 and has agreed to a Phase 2 for block 1.

I highly doubt that Total will, before doing its drilling in Block 1, decide to do anything with the other blocks. In order to determine whether Offor's price is realistically justifiable, Total really needs to understand Block 1.

Hence it could very well be that SNP asks for yet another extension on Phase 2 for our blocks, to give Total time to complete its operations in Block 1.

So, this process could take a LONG LONG TIME, before Total commits to anything in the other blocks.

Remember too that Total's percentage at Akpo was only 24%.

SNP has substantially more, depending on what block you are talking about. So it is not inconceivable for SNP to sell Total 24% interests and still participate in the spoils of the JDZ.

Krombacher