As you have already read, the three resolutions were...

As you have already read, the three resolutions were passed.

There was clarification required on the last resolution as I asked if the directors had to exercise and pay the for their performance rights at the prices prescribed to get their shares as per the memorandum.

The Chairman stated that the memorandum was actually written incorrectly and that the performance rights once the share price thresholds have been reached, will entitle the directors to exercise their performance rights for no cost.

As for the meeting itself, we covered the presentation released late last week slide by slide.

To say that the company is excited about 430 and 430b is an understatement.

430 is within a few kilometres of the existing Angelim field. I was told ( by another source and not the company )that the wells at Angelim first flowed at 1200 barrels per day and are now flowing at 500 barrels per day after 40 years of production. This bodes well for 430 once all the testing is all done.

I will take you through the slides one page at a time.

Page 3 showing Brazil and the basins. One that is not there is Rio de Peixe just above Gavea JV. A water well was drilled and it came up with oil. Good prospect.

Page 4 - Blocks 59, and 138 have to be drilled before 12/01/09 to earm their farm in %'s.

430 b must also be drilled before Jan 11th 2009.

Page 5 - the red vertical line is meant to represent today. A little out to the right.

430b and Block 59 to commence drilling in early October 08.

Flow test to be completed early September due to the nature of drilling and testing of wells in this region, using lots of local knowledge which we have in Gavea.

Page 7 - Block 330, appraisal well to be drilled early next year close to where the 1701 number appears on the diagram to the left, approximately 2 cms to the North West of where the red dot and 330 was drilled. They are very excited about the appraisal well site.

Page 8 Block 330 - paperwork submitted, environmental approval required, then this is submitted to ANP and the ANP will then immediately provide the production licence. Oil from Production testing will be sold and the $ will start rolling in.

Page 10 Block 330 Development Plan - Each well will cost roughly $750k each. ($10m for full field development ) Pipeline is within 10km of the well head. 21 years of production expected. New figures on the presentation of NPV of USD70m, at USD120/bbl. This is worth more than the current value of ERH.

Page 13 Block 430 - Testing will conclude in early Sept. They will then analyse all the data. Within one month of this we will have the field size and all the flow rates. I wasn't sure if we would get the flow rates with the weekly or ASX announcements prior to Oct 08. Could do.

Page 14 Block 430 - The company is very excited about the potential current flow because all the three intervals, upper carbonates, lower carbonates and the basement are producers in the Angelim field 3 kilometres away. Angelim produces from turbidites, carbonates and the basement.

Company was happy to say that field development at 430 would be different. My personal interpretation of this is that with a pipeline within 3 kilometres, the time frame and the cost of development would be very cost effective. Cash flow much sooner than the 330 timeframes.

Page 17 Location 2 at 430. Very excited by the seismics, think the prospect is around 3km2. All the same interval prospects as 430. Early Oct 08 start. The trend from the Angelim field is very exciting and gives the company a level of confidence in the potential success of the prospect. Also this well has to be drilled before 12th Jan 09.

Page 21 Silver Marlin JV – These prospects will flow at greater rates than Block 430. Both prospects have producing oilfields protruding into our Block. Both prospects are within kilometres of existing fields.

Page 22 Silver Marlin JV – all prospects in the 5-10 million barrel range, both prospects within kilometres of existing pipeline infrastructure. Seismics very prospective for discovery.

Page 23 Block 59 – within 1.5 kms of the existing producing field.

Page 24 Block 59 – prospect only 2km2 but the size does not preclude a small flow rate. Petrobas recently made a discovery at Jandai nearby where the prospect was small in square kilometrage but is producing at 4,500 barrels per day. Very exciting prospect for ERH.

The rigs being used are owned by the JV partner so there is not going to an issue with rig availability and there will be constant drill rig activity for the next 5 months.

Outstanding potential for oil discovery by ERH over the next 5 months. Three new wells.

I hold despite what the share price is doing. Phil Galloway and John Weston flew out to Sydney to meet with brokers and fund managers Tuesday.

Very exciting times ahead.

Regards

Kojasper