ERHC Energy Inc (ERHE)

[midtieroil]

I think ERHC will be able to sign a JV partner in Kenya which should give ERHC an immediate share price boost. It will be interesting to see how much ERHC can get in a farmout because what they are selling is a blank canvas. Most of the other deals done in Kenya were done AFTER substantial exploration work had already been done. On the other hand very little data is available for ERHCs block which WILL affect the value. It was OBVIOUSLY ERHC's plan to do some work first and then do the farmout, but it appears that the failed rights offering forced them to do the farmout sooner rather than later.

So, yes, I think we will get a bump for a farmout if it is completed and if it is a decent deal. But, like you, I don't think it will be a huge jump because most people will realize drilling is still a few years away at best and there is a lot of work to be done just to see if any good prospects exist, can be identified and are worthy of drilling. It is very early in the exploration process of this block.