Ann: Update - Block 138 , page-36

I think erh is in a good position, even if we are not allowed the extensions (which they most probably will get) because they can save that drilling expense and use the money for production wells or buy some marginal fields from Petrobras (huge loans, need to pay down debts)and wait for the oil price to rise. Our joint venture partners are going to bid in the 10 round and will most probably have to compensate erh with additional blocks if our extension is not granted.

Good to see management issuing announcement that are straight to the point, even if they are negative, at least we don't have to read through the lines any more.

Gee our joint venture partners must be shitting themselves, as they are the operators and the delays are their problem, not erh. We have three lawyers on our board if things ever get tricky.

Gee 8 cents looked nice today for some more