ERHC Energy Inc (ERHE)

[Krombacher]

The announcement of a partner in Kenya is different from the announcement of a partner in Chad.

In Chad, ERHC has committed millions to the Chadian govt, not as much in Kenya.

Hence, a partner announcement in Chad with carries, which takes ERHC off the hook, put ERHC in a better cash situation right off the bat.

That alone adds value to the company because the liabilities come off the books if someone else is footing the bill.

So yeah, ERHC's valuation with a Chad partner announcement should be higher.

Also if the Chad partner is CEPSA, that means CEPSA has interest in both Kenya and Chad (and behind the scenes maybe even the EEZ or JDZ)...

...that suggests buy out...more so than having a different company in each asset. Having the same company in two or more assets means that company/partner has a greater interest than just the asset, and perhaps its interest is in buying out ERHC altogether.

Krombacher