ERHC Energy Inc (ERHE)

[procon]

Many thanks, Stockhocker. From the point of view of the JDA, it would certainly be a lot less embarrassing to have a replacement immediately than to have to rebid the block, and I think that may be a leading issue for them now. I suspect that APC and XOM may try to wiggle into the block, too, so there will be resistance to quick approval. To me, that tension is going to make an outright sale of our rights in Block 4 more likely. I am very interested in finding out what Noble has to say about their withdrawal, and particularly if they question the value of the acreage (I don't think they will). With the model PSCs, it may not be as hard to conclude the legal side as we'd first think. All in all, I do see a four- or five-cent drop coming up and some rocky times ahead, largely because investrs will wonder if Addax truly has the wherewithal from basically one or two years iof high oil prices to pay for exploration and rigs. The bright side is that as a small company they can work a lot more quickly than even Noble could once they are prepared to move, and along those lines, I think the extension of their rig contract in OPL124 may get repurposed over on Block 4.