ERHC Energy Inc (ERHE)

[midtieroil]

And you actually believe ERHC is going to get a lot better deal from private equity? I don't. There will up front fees. It will come at a steep discount to market. There will likely be warrants which will cause additional dilution. $10 million dollars is peanuts in this industry. ERHC said they needed $18 million over the next few years and they are nowhere close to that. The 2 million share dilution mentioned is for a single debenture, many more are issued and the company has already said more are coming. The 2 million share dilution is merely a precursor to what is coming.

All any ERHC shareholder can hope for is that the next round of financing is not as toxic and doesn't include convertible debentures that have no floor. And that the share price is higher. Plus, ERHC blows through about 4 million a year just sitting at their desks doing no exploration work at all.

By the way. Why is ERHC not doing an FTG study in Chad? My guess is they couldn't afford anything else and are desperately trying to get enough info that they can get a JV partner. It hasn't happened in almost 3 years and we will have to see if this gravity study will do the trick. FTG would have been far superior. ERHC needed to do something just to hold on the single block they still have. They had to give the others back.