Well it's a good thing that ERHE is not part of those companies and is not a pump and dump.
EHRE has does done a phenomenal job with Kenya and that's where our eyes should be set...and thereafter comes Chad and the EEZ.
The JDZ is all fine and dandy, I'm sure they found some oil of some kind there but it's difficult and with Total leaving we know that now...but we also knew that since we had pretty much discounted and written of the JDZ for the most part.
The good news is though that if Total and SNP leave, then ERHE gets all the percentages back and can re-farm them out and get more cash...it also is free and clear of any costs associated with the initial drilling. You can't say the same thing about HDY, for example, they're stuck with all drilling costs even though they came up empty the first time around.
ERHE was very smart to have structured its free carries the way in which it had.
On the other hand, it could be that SNP wants the whole shebang...it could be that SNP is in all of our blocks and just accepted Total's interests in Block 1. We will learn soon enough.
But again, the shorts would love to draw on the JDZ story as a failure for which to justify a short position, but the real deal is in Kenya for the time being.
That's the wonderful thing about ERHE, it is NOT a one trick pony. If the JDZ fails, that's ok, we have other properties and it is why you are not seeing the stock plunge on huge volume as you might expect if ERHE's future were only on the JDZ. It's not. We have Kenya, Chad and the EEZ.
Krombacher
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