announcement

The extension to 138 and 59 will be a formality.

Petrobas recently announced that the ANP extended 27 blocks of their blocks and ERH management assured investors that there is not going to be a problem with time extensions for these two blocks because the company had done all the the preparatory works for drilling.

All the civil works have been prepared, the rigs were booked and they are actually drilling one of the wells.

So forget about the uncertainty and focus on the 330b well that gave us 63 metres of oil shows before even hitting the primary target. On top of that they are going to be testing another target that showed the presence of oil in the previous well but was not tested.

All in all, this looks pretty exciting. I expect the extensions for Block 138 and Block 59 to be sorted quickly due to the fact that we are on site drilling. They would obviously stop for commercial reasons.

Within a week we should have 330b at total depth and some more good news. I hope we get resolution on 138 and 59 within that time also but I can say as I don't know how long things take in Brazil.

Regards

Kojasper