Replies to post #103533 on ERHC Energy Inc (ERHE)

[balance_builder]

wtao...you "could be" right about buyin or buyout. We've beat down the talk on why some believe it will occur and others believe it won't. I'm with the "it will happen pre-drilling" mode of thinking based on co action and inactions.

Its articles like this (see directly below) that lead me to think SEO may remove risk...coupled with posts I place weight on that add to my thinking of a deal before drilling. Don't think for a second that PXD wanted to throw their money away in next door block OPL 256:

Pioneer completes drilling operations in Nigeria
Posted: 16 July 2007

Pioneer Natural Resources Company reported that it participated in the drilling of the Ofuruma 1X well on the OPL 256 block (25% WI) in deepwater Nigeria.

The well tested multiple objectives on a thrust structure located near the northeastern corner of the block, but found only non-commercial oil and gas accumulations.
http://www.energyme.com/energy/2007/200700267.htm

These little tidbits from partners also add to my speculation:

Value adding acquisition opportunities
–bolt-on to broaden existing operations
–expansion in our core areas
–opportunistic corporate transactions
http://www.addaxpetroleum.com/_pdfs/Investor_Presentation_2007_06.pdf

I believe (as was previously posted up by a respected poster) that proven is worth 5X's that of probable. While that is a healthy difference......dry holes are valued at Zero for the company. I can see SEO wanted to hang on to the "upside" of our interests all while reducing the risks in a huge way.