ERHC Energy Inc (ERHE)

[TOB]

Onshore drilling is not only much faster, it is vastly cheaper using readily available rigs. There will be many rigs and drilling contractors streaming into Kenya in the coming year or two.

Not quite as many in Chad, but in Chad the availability could be higher, and there may not be as much demand. No value in an idle rig.

Compare the thousands of land rigs, to the handful of hugely expensive deepwater drilling rigs, many of which are booked for years to come on existing projects. Onshore rigs are plentiful, and can be built in months, not years.

Another factor is the relative depths. By the just hitting through the water to the sea-bed in ultra deepwater is close to total depth in existing wells in Chad and Kenya.

Just tripping the drill bit to the seabed and back to the ship is comparable to the cost to drill onshore to the same depth. Ponder that.

ERHC is in a rapid growth period, with a conservative exploration schedule that can be expedited, and probably will be.

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