ERHC Energy Inc (ERHE)

[sneak-attack]

The Biggest Obstacle preventing this oil play from being a successful venture is:

1) The number players involved in the JDZ.
2) The amount of estimated hydrocarbons, 5 billion barrels.
3) The number of targets in the three blocks (18).

All of the above would signal low return in exchange for the amount of capital that would be put to work bring the hydrocarbons to market. With 18 possible target yielding less than 300 Mbls per target and a multi-billion dollar price tag for development divided by the many players involved and the JDZ tax base, One can see why SNP may want to put the breaks on the JDZ as it now stands.

I have said from the beginning that the smaller fish had to be plucked from the pond before any real development took place and now you see why. Exxon, Anadarko, Addax and Chevron could see the hand writing on the wall. Total came in for their own interest as it relates to it's location to Akpo. SNP got the wake up call when block 2 was less than stellar.

As for ERHE By the Grace of God we may have a free carry, but in no way are we out of the woods. I still believe that block 4 holds the Mother Load, but only time will tell, SEO and Company have not headed for the exit and neither shall I.

Have a Great Evening!
Sneak