ERHC Energy Inc (ERHE)

[Krombacher]

Alright petemantx, here's a scary thought for all of us.

If the goal is to eliminate minority partners, etc., then the fastest way to eliminate everyone, including ERHC Energy, would be for the JDA to hold a firm line and force SNP to do phase 2 with no new extensions.

If SNP does not do the drilling for Phase 2, and no one drills the blocks for the entire 2 years, then EVERYONE loses their rights, including ERHC.

At that point Total can enter. In other words, if I were in Total's shoes, I might be inclined to tell the JDA that I'll start drilling blocks 2, 3, and 4 in two years, if they are willing to wait that long, and *if*, SNP does not do any drilling during those 2 years.

Then the JDA gets Total, gets rid of all the smaller players including ERHC, and it gets rid of SNP, a seemingly incompetent operator.

If I were the JDA, I wouldn't give SNP an inch! SNP would have to drill phase 2 or get out of the way. In fact, if I were the JDA, I might even turn up the heat on SNP. No Taiwan. No break on royalties or taxes. No extra time. Drill or get out.

It would be to my benefit. Total will come in, in two years. And everyone else would be out. Nice and clean.

Krombacher