why is 2009 different

I am trying to find out a little more about the structure and intervals of the original 330 well but I am struggling. I am trying to make comparisons to the current well and the intervals where we are getting strong oil shows and trying to evaluate what potential oil bearing zone we are going to end up with and the potential flow rate. I'll keep looking.

I certainly am hopeful that total depth will have been reached and that we will get an announcement prior to market opening on Monday.

As for those that are trying to make comparisons to last year, there are a few things to remember:

- Last year at 430 we got a large oil bearing interval and oil show announcement and then had to wait 2-3 months for the flow testing to begin all the while the market was tanking. Naturally, when there is no momentum, the share price will fall away. In the end we didn't get a flow rate announcement for several reasons. I am sure that with the appraisal well about to get underway the company will 1. get the process of testing correct and 2. give us a flow rate higher than we expect.

- 330 only produced 60 barrels and everyone thinks this is ordinary. On it's own it is, but this was from a 48 year old well. The new well will certainly produce at a greater rate and even more so under stimulation.

Pump and Dump my butt. You can't expect a share price to keep heading to the sky if the markets are falling and we don't get continuous good news.

What's different this year, lots of things?

- The company has two discoveries, 330 which was supposed to be 2.8m barrels recoverable at 100% and 1.1m barrels net to ERH is looking likely to be 6.4m barrels ( at this point but will grow with appraisal) and that number will get firmed up with the up-dip appraisal well that could in fact show that the field is even bigger again.

- 430 Discovery it is, very light sweet oil from the upper most interval, not even taking into account the middle interval that produced oil and the basement that they know produces prolifically in the Carmopolis and Angelim fields next door. This has all been confirmed by the mob next door in Block 429. They discovered the same information in all three intervals.(Got told this at the AGM)

- Block 138 It seems that we have something here already, only a matter of time. Company believes that this block has the potential to produce in the 1,000's of barrels per day per well in the initial periods. Current delay is commercial in principle and the company is simply following good advice. The rig is still on top of the hole and the well has been cased to 850 metres and the interval with the oil show has been logged. Approval shouldn’t take too long but it’s a nice delay considering the action we are getting on 330. Following total depth at 330, we then get flow testing. All good stuff for the next month. We will mostly go back to 138 once 330 PACA 2 is done if not earlier from a news perspective

- Block 59 is just as prospective.

So here we are in Jan 2009 and people say here we go again, 2008 all over again. I don't think so.

The company is now on the move, development plans are the go. People are only just starting to realise the potential. When I can find out what the development plans are along with cost and time frames, I will be able to build up a model of the potential revenue and cash flow we can look forward to in the next 5 years. Then someone can provide a valuation, something meaty to hang our hats off.

I personally think that the company has a great future. If you want to trade the announcements, that's your prerogative, I have much grander plans. I want to be there when the company is a medium sized oil producer and maybe major, but more importantly, I want to be in the company when everyone else is ignoring it, when no brokers are covering the company and while no large funds are yet on the register. These are the people that are going to help us get the share price into the multiple $ region when ERH’s market cap or revenue and earnings can no longer be ignored.

Regards

Kojasper