ERHC Energy Inc (ERHE)

[Krombacher]

Compared to the last set of blocks licensed to companies, of which ERHE owns the last one...

...new blocks in Kenya present a horrendous set of challenges, which would cause any company to salivate over ERHE's last block.

For example:

Previously Kenya operated more on a first-come, first-serve basis, but since it has become established as a known area for hydrocarbon deposits, it wants to demand more from companies that seek to drill in the country, energy ministry officials said.

Nyoike said Kenya would demand higher licensing fees and impose heavier work programme requirements, which means companies would be required to spend more money in the country.

"Things were different a year ago than now ... Kenya can demand more," Nyoike said.

Kenya has become a magnet for exploration activity since announcing in March last year its first oil discovery by British explorer Tullow Oil to the north, followed shortly by a second find in the same region.

In the wake of those finds, international oil and gas companies snapped up what remained of Kenya's 46 exploration licenses.

WOW, good thing that ERHE SNAPPED UP THE LAST ONE BEFORE ALL THE NEW CHANGES IN REGULATIONS AND FEES!!!!

http://www.reuters.com/article/2013/02/12/kenya-oil-idUSL5N0BCHWE20130212?feedType=RSS&feedName=marketsNews&rpc=43

Krombacher