ERHC Energy Inc (ERHE)

[kobiashi2000]

Possible valuation on Blk 2 based on Chevron Blk 1 hit since it's been rumored that more than 50% of their hit is in Blk 2.

For arguements sake let's say that we end up with 1 billion barrels of proved reserves in our blk from the Chevron hit. Here are some valuation numbers based on that hit, without taking into account ERHC even drilling a well, none of the rights in our 10 other blocks, and no p/e multiple.

1 billion barrels = $60 billion in current market value
We have 65% of Blk 2 until we either sell it or give some percentages to Chevron, Sinopec or Shell to be our partner for a free carry until first oil and a fee. I've used the number of $6 a barrel on the balance sheet when determining proved reserves, I've been told that is conservative, and that US oil companies valued it at $9-12. Here are the numbers.

65% = 650 million barrels
650 x $6 per barrel = $3.9 Billion
$3.9 Billion/710 million s/o = $5.49 a share

30% = 300 million barrels
300 x $6 per barrel = $1.8 Billion
$1.8 Billion/710 million s/o = $2.53 a share

Say we only end up with 500 million barrels off the Chevron hit.

500 million barrels = $30 billion current market value
65% 325 million barrels
325 x $6 per barrel = $1.95 Billion
$1.95 Billion/710 million s/o = $2.74 per share

30% 150 million barrels
150 x $6 per barrel = $900 million
$900 million/710 million s/o = $1.26 per share