HDY is drilling a failed well and another well not too far from that failed well.
That's very poor diversification. If the failed well continues to fail...then what? Drill nearby at the other well? And what if the geology of that other well is about as good as the failed well?
They don't find oil and they're screwed. HDY investors will be taking a HUGE risk. Tales they win, Heads they lose it all.
ERHE on the other hand will have multiple coin tosses. It'll get some money from Kenya, leverage it in Chad and get some money in Chad and leverage it in the EEZ. And while all of this is going on, ERHE has this amazing African network getting it assets as varied and diverse as the Africans themselves.
Why would anyone want to invest in a deep water one trick pony play, when for about the same market cap, you can get many, many more blocks and prospective sites dispersed from West to East and offshore to onshore plus the EEZ and it's huge pre-salt potential?
You get a lot more bang for your money. 3 or 4 or 5 coin tosses...each capable of delivering the investor multi-fold potential returns. What, the JDZ is a dud? No problemo...lots of other places to try your luck.
HDY on the other...if you lose...that's it...wiped out.
The choice is obvious to me.
Krombacher
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