ERHC Energy Inc (ERHE)

[Krombacher]

And also, are ERHE's rights in jeopardy, if SNP plays some game? No one here has ever answered this question satisfactorily, in my opinion.

According to ERHE's filings, its rights were in jeopardy back in the Feltang days when the operator of Block 2 at the time withdrew from Block 2 (as I read it):

Without the quick finding of a replacement for the Company’s former operating partner in Block 2, the Company’s ability to proceed to the execution of a Production Sharing Contract and, therefore, the maintenance or retention of its interests in JDZ Block 2, would have been put in serious jeopardy.

The way I read that is if an operator withdraws from a block and ERHE is unable to find a replacement operator, then it can lose its interests or rights in that given block.

So why on earth would Total step in if SNP leaves? Total can simply wait until ERHE loses its rights, and step in then, and then build a consortium with SNP with ERHE out of the picture.

Is this not a real risk here? Hello? Anyone care? Or no one really knows the answer?

Edit - As I read that again, I see that maybe the rights were in jeopardy not because an operator left, but because the leaving operator prevented the execution of a PSC. So it could be that the PSC was the criteria for keeping rights and interests and not the operators desire to withdraw.

I have no idea.

Krombacher - the above can be totally wrong.