ERHC Energy Inc (ERHE)

[Krombacher]

Also, I think whether ERHC sells some or all of its percentages to Total will depend on how much money they can get in Kenya.

If Kenya can produce $45 million, for example, in a deal like Africa Oil, then really ERHC and Offor can wait the 5 years as Total drills up the JDZ.

On the other hand, SNP could probably wait even longer, given its longevity and given that eventually ERHC's destiny is to be sold to someone.

The other point is that ERHC may want to wait what Mr. Market thinks after it has communicated to the market for all of this. Then it can tell Total or any would be suitor what it must be worth...again after communicating to the market. Right now, Mr. Market doesn't know everything.

That said...the problem I see is that if both ERHC and SNP are vying to sell some interests to Total, then you have a "reverse bidding" war. Two entities competing to sell to the only buyer is sure to drive the price down.

So maybe it's best for ERHC to wait it out a bit longer...much to the unhappiness of some who want a quick payoff?

Krombacher - the above may be wrong.