ERHC Energy Inc (ERHE)

[Krombacher]

Hence, my guess is as follows:

1) Erhc will pay 1/3 of $5 million per year or about $1.7 million. That is within ERHC capability.

2) But, the reason we are probably not getting any more details about the Chad development has to do with the $25 million in seismics and other requirements within the contract, which ERHC will likely have to come up with somehow.

Hence, ERHC has to make some kind of deal with an operator...most likely through a farm in into the Chad blocks...and that operator has to act within the 3 year period.

The *big* question is: did ERHC jump into this feet first, without first lining up an operator, or does it have or is close to having an agreement with an operator?

I would venture to guess that the answer to the *big* question is that ERHC probably does not have an agreement set up with an operator yet (or else it would've been PR'd I would think)...so there's a bit of a gamble to come up with $25 million or risk losing $5 over 3 years.

On the other hand, since ERHC has this *incredible* relationship with Sinopec, perhaps, ERHC is looping in the Chinese, and that's why they can confidently proceed forward in this deal.

The Chinese sort of "owe" ERHC for forcing ERHC to keep quiet about the JDZ, I would think. Or at least, ERHC has gotten some "points" with SNP for its discretion in remaining quiet.

I think that's how this is going down.

Krombacher - the above is pure speculation and may be completely wrong.