ERHC Energy Inc (ERHE)

[tryoty]

There are interesting ramifications to this latest revelation. If Sinopec stayed and drilled further, finding commercial oil, ERHC would have to pay for all previous drilling out of production.

With Sinopec walking, if true, ERHC does not. If CNOOC/Total step in and finds oil, ERHC will have to pay some portion of futute wells based on whatever agreement they can hammer out to get CNOOC/Total to step in, full carry/partial carry or other. In the long run this is good for ERHC, but only if oil is eventually found.