Replies to post #237513 on ERHC Energy Inc (ERHE)

[Krombacher]

honestly, I don't know what to make of this development.

The JDA must be thinking what now? The whole point of allowing another 6 month extension was to let SNP decide as to whether it will release the results of the drilling.

As I understood it,

the JDA basically said, "look, you got to tell us your findings if you want to go to Phase 2",

and SNP said, "well, what if we don't go to Phase 2?"

and the JDA said, "well you will lose your rights,"

and SNP said "then you will have to start all over again",

and the JDA said, "yeah, that would suck, so before we get to be too hasty, how about another 6 months for you to think about it."

So 6 months pass, and now SNP decides, "we're not going to give the JDA the results unless our demands our met"

and so the JDA is thinking, "well, we can always take SNP's rights away for failing to abide by the contract, and give their rights to Total or we play some ball".

And what we seem to know is that they are negotiating. So either SNP's demands are "within reason" or the JDA is negotiating just to see what comes of it, always knowing that they can always walk away and give the rights over to Total.

Do I have the dynamics even right? And what the heck could be SNP's demands? What do they want? To cheapen up the taxes? or royalties on revenues? as someone here said, or what?

Krombacher