ERHC Energy Inc (ERHE)

[TOB]

They always P&A a well prior to moving on. Regardless of whether it is a temporary P&A or a permanent one.

The only exception would have been a completion for production in which they intend to run a production string and install a subsea tree using the same drill ship. They would likely not do this at this stage in the JDZ-1 as they have yet to bring the Egina field online. It is premature by at least a year or two. This is not an appraisal well done on a producing field.

Even had they run a production string and done flow testing, and intended to use the well for later production, or intended to return and run a production string, they would still do a temporary plug and abandon before removing the Blow Out Preventer (BOP) and moving the drill ship. They have to shut in the well.

The P&A means nothing at this point. Even a permanant P&A would mean little as appraisal wells are not necessarily located, designed and intended for production.

This is Oil and Gas exploration 101.