ERHC Energy Inc (ERHE)

[TOB]

New well spud to the east of ERHC’s Kenya Block 11A

(Scroll to the bottom for all charts and text)

Africa Oil has spud the Paipai-1 exploration well located in onshore Block 10A, on September 29, 2012. “The well is planned to drill to a total depth of 4,112 meters and will test Cretaceous and Jurassic sandstone targets. The well is operated by Tullow Oil, who hold a 50% working interest. Africa Oil holds a 30% working interest in the Block. The Paipai-1 will be drilled using the Sakson PR-5 rig and is targeting gross best estimated prospective resources of 121 million barrels by the Company's independent resource evaluator.”

This well is likely of even more significance to ERHE than the major Ngamia-1 discovery, as Block 10A, like ERHC’s Block 11A is along line and in trend of the Cretaceous systems of the West and Central African rift systems, which extends from South Sudan’s 6 Billion barrel proven reserves, and along the East Africa Rift system. With a variety of highly prospective targets and proven petroleum systems, including the Cretaceous, Tertiary, and Jurassic.

Elsewhere in Kenya the Company and its partner Tullow continue drilling operations at the Twiga South-1 well site located in Lokichar sub-basin onshore Block 13T and results of this well are expected before the end of October. In onshore Ethiopia, Tullow are finalizing plans to mobilize the OGEC-75 rig for the exploration drilling campaign that is planned to commence with the Sabisa-1 well in the South Omo Block near the end of this year.

This has the industry’s most successful oil exploration company drilling all around ERHC’s block 11A, to the North-East in Omo Block, and to the south in Block 13T among others. With massive proven discoveries already to the South West in Uganda, and to the North West in Sudan, and with the Ngamia-1 Discovery just South in Kenya, soon to be further tested.

Keith Hill, President and CEO of Africa Oil, commented, "The Paipai well will test Cretaceous and Jurassic targets in the Anza graben, whose geologic history is comparable and on trend with producing basins of Sudan. Paipai-1 will test a large structural trap in what is considered to be an oil-prone area of the Anza basin. Legacy wells have encountered significant oil and gas shows, but newly acquired seismic surveys have helped improve mapping and identify the Paipai prospect as a favorable and potentially high-impact exploration target. A discovery at Paipai would extend the producing plays of Sudan into Kenya and open a potentially significant and new petroleum province within Kenya where the Company is already implementing an accelerated exploration program after the Ngamia-1 discovery in the Tertiary Rift Play earlier in the year. With plans in place for three drilling rigs to be operational before the end of the year, the Company is entering an exciting period of activity with multiple high impact exploration targets expected to be drilled before the end of 2013."

That trend runs right through ERHC's block 11A. With its stock, ERHE, still available under 14 cents. Those waiting for 'proven reserves', confirmation and advanced exploration will likely pay a much higher price. ERHC traded to 98 cents when there was only drilling in one ultra-deepwater asset which would have required a massively expensive FPSO vessel to produce and hundreds of millions of dollars and a decade to explore, and develop any discoveries for production. Using Usan or Akpo as examples.

The entire exploration program in Kenya or Chad can be completed to proven discovery for about half the cost of one well in the JDZ. Using the $1.6 Billion dollar Benoy-1 discovery in Chad as an example, a net investment by CPC of $42.76 million in Chad.

Chad is land based, near a pipeline with a planned extension to run right along ERHC's block. Kenya is land based, with any pipeline from Sudan likely to run right through ERHC's block.

Two huge potential petroleum basins have already been identified in ERHC's Block 11A. Astute observers will note the correlations with Ngamia-1, Paipai-1, and Twiga in the other charts below.



Land based oil discoveries are far cheaper to explore, develop and produce. The heightened exploration in Kenya and Chad provides additional opportunities for rig sharing and other cost savings.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Mali as well as Puntland (Somalia) through its 45% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighboring Uganda. Africa Oil's recent Ngamia-1 discovery extends the Albert Graben play into Kenya where Africa Oil along with partner Tullow holds a dominant acreage position. Newly acquired seismic and gravity data show robust leads and prospects throughout Africa Oil's project areas.

Block 10BA, just East of ERHC’s Block 11A also along trend with Sudan and Paipai in Block 10A. Note the South Omo block just above in Ethiopia.



Confirmation that Major Oil companies now scrambling to gain a foothold position. ERHC has the ONLY block in this area which still has a majority interest in their recently acquired Block 11A, surrounded by Tullow and Marathon led exploration. Adjacent block 11B just signed a full carry.

Obviously ERHC can pick and choose the most favourable terms, when and if they please. The Company (ERHC) is also currently in discussion with several prospective partners with a view to sharing risk and expenditure on the Chad and Kenya work programs.



How much oil is there in these Tertiary/Cretaceous Rifts?



Alternatively we see a desperate attempt to spread fear, uncertainty and doubt on every aspect of ERHC, its exploration, management, Directors, successful diversification, fund raising plans, and even the success of its affiliates.

Clearly ERHC has highly prospective assets as regarded by real industry experts involved in actual exploration. Which I've demonstrated with numerous links, quotes and charts which just scrape the surface of my research. Personally I'll trust the experts, not those with strong opinions and imaginary experience with ZERO to back it up with. Just a stream of hot air and constant rhetoric.

Curiously, always coinciding with ERHE rallies and good news. we see desperate ffforts to step on every rally, every butterfly. Those lowball buy orders must look more and more hopeless as the volume increases. Lol.

Folks, nothing is guaranteed in the high risk, potentially very high reward oil and gas exploration business. This is why it is possible to buy ERHE for about one penny per massive exploration block in 4 geologically unique and highly prospective regions. The Fat Lady has yet to even approach the stage in the ERHE opera. We will see if the constant stream of negativity about anything and everything ERHE scares up any cheap shares or not.

So far it’s not been working.