Playing the risk/reward game in business can be an interesting adventure. Getting the reward without risk is always nice, but not half as exciting or potentially rewarding as venturing into shark-filled waters to retrieve it. Generating large rewards requires taking risk, and in some instances, not always monetary risk.
ERHC Energy Inc., a US-based oil and gas exploration and development company, works to exploit oil and gas deposits off the coast of West Africa. The company currently holds positions in 6 of 9 blocks within the Joint Development Zone and exploration rights within the Sao Tome and Principe exploration zone. It was one of the first oil and gas exploration and development companies to recognize potential reserves at these locations and is working to further develop its current holdings while assessing older operations that may hold potential for its business plan.
Risk and reward characterize oil and gas operations in this part of the world. There is a large potential upside for profit as the region is considered one of the world’s most lucrative oil and gas finds. Unfortunately, as is the case with many if not most oil and gas development projects around the world, there are potential downsides to production in this part of the world. Nigeria’s current political situation could lead to platform shutdowns, lessening revenue flow. The potential, however, is such that the rewards far outweigh the potential risks involved with operation in this part of the world.
ERHC Energy has been maintaining an even keel as it explores these valuable oil and gas regions. It prides itself on maintaining tight cost controls in a business that can see costs spiral. As the price of oil and gas continue to move in their historical price highs, the company is reaping the rewards. Nigerian issues aside, the company is in solid place as oil and gas flow to this solid oil and gas developer.
Let us hear your thoughts below:
