Replies to post #84649 on ERHC Energy Inc (ERHE)

[kuxe0]

Text, page 31 from recent Afren presentation

Significant upside:

‘High impact' rather than ‘high risk / high reward'

Prospective risked reserves of one billion bbl

Low exploration risk - structure traps analogous to Total's

nearby fields (Akpo, Egina) in OML130

150 ft oil and gas column proven in Obo-1 (Q1 06)
-----------------
Established valuation benchmark:

CNOOC acquisition of 45% working interest in OML 130
(US$2.3 billion) announced

Implied multiple of US$4.6/boe on P50 undeveloped
reserves
---------
Attraktive PSC:

Signed 1 February 2005

Signature bonus of US$123 million (paid)

Sliding scale Royalty up to 5%

Cost recovery up to 80% of production

Profit share on sliding scale from 25% to 80% (contractor)
50% PPT

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page 10 says:

São Tomé & Príncipe
Chevron JDZ Block 1 Up to 1,000 MMbbl
4.41%
Possible Drilling H2 07