Replies to post #259669 on ERHC Energy Inc (ERHE)

[TOB]

- The JDA can shop the relinqished 35% of JDZ2 and keeps the $$ proceeds

I believe this is correct.

- ERHE is now the defacto operator of JDZ2 with 65% - albeit with limited current funds available

Main interest holder, no way ERHC could cover costs as of today. that could change in the next year or two, though I'm not convinced JDZ-2 is that interesting, even once ERHC can pay its costs. But no way ERHC would be operator. They will need an operator capable of exploring a deepwater field and bringing it to production.

For example, if ERHC raised $100 million, I don't see drilling one well in the JDZ-2 as being a sensible way to spend it with other more attractive and more reasonable options available.

- ERHE keeps all the drilling data from phase 1 and is NOT liable any longer to SNP for its proportionate share of (EDIT - JDZ2)phase 1 drilling costs - regardless of any future oil events

That's the nice part, assuming there is any production from JDZ-2 while ERHC is active. Or anyone wants to buyout ERHC's rights. I think it would be a better deal if it happens in the more attractive JDZ-4, or even JDZ-3.

- If ERHE finds a new partner within JDZ2 - a new PSC needs to be completed

I expect they can just farm-into ERHC's existing PSC with the JDA. They would need to negotiate a new one if they wanted some of the 35%. They would need a new operating agreement approved by the JDA of course, with new phases and work commitments.

I don't know if there is a set time period for ERHC to come up with a replacement.

Another item to consider - to your point regarding SNP inexperience - the SNP/ADX merger was just being completed in Oct 2009 when the JDZ-2 drilling was completed by SNP

It was new to Addax with the JDZ wells also. Both were newbies to deepwater, but Addax had nearby experience in less deepwater.