Replies to post #204912 on ERHC Energy Inc (ERHE)

[YankeMike]

Thanks sneak-attack. Yeah, it's an interesting scenario.

OML46

-The cost of entry is just under $2M and the cost to first oil is just under $10M making this a low cost route to early cash flows.

-The potential for flow rates of up to 2,000 barrels per day from the vertical well.

-Up to 10 million barrels are reckoned to be recoverable.

-The field lies in just 3 metres of water.

-Afren’s netback pre-payback on Eremor, for example, at an oil price of $50 per barrel is $25 per barrel.

Mike

[vineseeker2]

Just a thought, China is financing the Brazilian oil boom to the tune of 10 billion for a gurantee of oil payments. They might be interested in financing marginal fields for ERHC for the same gurantee, china wants resources and anyway they can gain them would be attractive. They have not done so well on direct deals, maybe their best way in is through the back door, let SEO gather up a bunch of marginal fields and finance their development to insure the oil comes to China when pumped.