bayfisherii... you win the PBOY for your comments and encouragement to crunch the numbers. I didn't want to add my two cents until other folks were given a chance to chime in and give their opinions. But if you look at Block 2, it could be argued that at a price of $55.00 ppb and Production at 91.25 mbopd that the numbers would looks something like this:
P = $5.01875 billion
minus Royalty (full 5%0 = $4.76781 billion
minus Cost Oil of $500,000,000 = $4.26781 billion
minus Tax of 50% = $2.131391 billion
R Factor of 2.5 allows for 25% profit = $533,477,500
ERHC gets 22% = $117,365,050 for next 25 years!
You can use an Excel spreadsheet to work the PV of that number based on 6, 7, 8, 9, 10% or any percentage you want to use, but that comes out to $3.0 billion at 0 percent or $4.00 a share with no PE multiple.
Bottom line is that it's pretty safe to say the current market price is a good buy and undervalued when you consider the potential.
BCNU