Replies to post #307777 on ERHC Energy Inc (ERHE)

[kingpindg]

That is a good question, 2...


and there is not really a clear answer. As you can see below, the project is described as a "drilling campaign" with one firm well, one possible well, and then, maybe, even more wells. Obviously the $20-$30 million cannot cover all of that, but does it cover the firm and the possible? I cannot say for sure, but after reading the entire document and realizing what a massive undertaking even drilling just one well actually is, I'm inclined to think the estimate is just for Tarach-1, although I'm probably also biased by the terms of the PSC saying that the minimum expenditure for one well would be $30 million.

Project Description

CEPSA KENYA Ltd is planning to undertake an exploratory drilling campaign comprising a number of exploratory wells to verify the presence of hydrocarbons in Block 11A following the analysis and interpretation of the seismic data acquired in 2014. The exploratory wells will be drilled in series, one at a time. CEPSA KENYA Ltd intends to start a first phase of the exploration drilling at Block 11A by drilling one (1) firm well Tarach-1 and, depending on the results of the first well, one (1) optional well, Egole-1. Depending on the results of this phase of the exploration drilling, more wells may follow in the future. The final locations of the exploration wells have not been determined. CEPSA KENYA Ltd has, however, identified an area of interest for the proposed project activities on the eastern basin.

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