Ok...let's connect some dots, shall we...
1) The white board resurrected. That alone brought in dozens of investors.
2) NGAR - new management, Sylvan still on board, PN a major shareholder. The name suggests they do what ERHC does...and they have the same address as ERHC's headquarters in Houston. NGAR intends to list on the TSX, which has quite the prestige that pink sheets do not. To do so, they need a story...up next, a story.
3) The EEZ...KABOOM!!!! Lots of activity in the EEZ. Only 3 years to commence drilling according to PSC/various contracts...that means planning must pretty much start now...and with the Big Jane rumor in the background...something is happening there. No telling how much cash we garner. In the JDZ we got 40+ million bucks. EEZ blocks are way bigger than the JDZ...lots more money involved...and therefore, lots more money to be paid to ERHC. ERHC must be looking so pretty that Ntephe can kick back and write a few Nigerian political articles...in fact, if Ntephe is not part of management in NGAR...that might explain...maybe he really is leaving.
4) Kenya has CEPSA and we are less than 9 months from drilling. CEPSA left another block, SWALA, where Tullow committed to drilling. They left that block but kept ours. The resource estimates given for our block are ONLY for ONE basin. We expect to drill one exploration well, with the option to drill a second one, both in the SAME basin. We selected these locations because the geology is familiar to Kenya. But the other big black blob...the other basin, might have even greater potential as its geology is similar to the ginormous finds in nearby Sudan. Even after drilling, the Kenya story is far from over. It is really two assets in one. And hence, we not only have diversification across Africa, but our block in Kenya ITSELF is a diversification strategy within Kenya.
5) We only need about 1 million bucks or so to make it to drilling in Kenya. Surely ERHC can scrounge up a million without doing much more convertible debt. If they don't do convertible debt, then the last of it will become eligible mostly in August...and we could be home free. Look at other stocks like TPAC flying through the sky when their convertible debt was over with. (I do not own TPAC nor am I spamming it, just pointing out a similar business situation) That stock spiked 14 fold.
6) The JDZ resurrected. We have some activity happening in Block 1, with apparently all block 1 participants, including an operator, working together on that block. Block 1 is not one of our blocks...but it's only a matter of time...a short time, for us to get a partner in the other JDZ blocks. Why? Because it sounds like the JDA now has its act together and the bureaucratic quagmire over there is now accepting fast tracking in Block 1. Africa time still holds...but you never know. That might be the last chip that needs to fall. This alone could yield another $40 million or more to work with as it did last time we partnered in the JDZ. So even if JDZ drilling may be years away...we still might get some serious cash for both our old and new management team to do conferences around the world and find new assets and properties. The future of ERHC has never looked so good.
7) And all that's left now is CHAD. Chad could be huge...we still need some money to pay for our obligations in Chad ... but with any of the above coming to fruition...Chad will be right behind. That's the beauty of ERHC...it is a DIVERSIFIED African oil asset play. If no oil is found in Kenya, no problemo...there are other assets and hope will spring eternal again...just as it has after our first round in the JDZ came out bust. That makes ERHC a LONG term hold...at least a core position should never be sold until oil is found in multiple properties. This is not Taipan or HDY...because ERHC has more than one asset. In fact, even it's one asset in Kenya...is really two assets...because it has two basins.
8) That leads me to describe the current shareholder demographic. Do we have some flippers? Sure. But what we have mostly is a bunch of long and strong die hard longs who cleverly purchased dilution insurance and increased their holdings more than 10 fold. These longs are UNLIKELY to sell...at least not sell a core position....until either a big buyout (let's say by TSX investors and NGAR) or until we hit oil. That is why the volume is so low (no sellers) and why the ask has been so thin of late. WE ARE NOT SELLING. And heck, nothing says that after the NGAR buyout, we can't continue to hold shares in NGAR going forward (albeit a diluted ownership of that company). Of course, if you bought tons of dilution insurance now...any dilution by an NGAR buy-out will still afford you quite a piece of the pie of NGAR.
That might be why our leadership are not only shareholders in NGAR but also have become substantial shareholders in ERHC recently. In fact, buying ERHC shares at these cheap prices might be the optimal way to gain cheap entry in NGAR. Who know what NGAR shares will sell for on the TSX once all the Kabooms are PR'd. If you want to get a lot of NGAR and protect yourself from dilution through an NGAR reverse merger...then take a page out of the dilution insurance strategy plan and buy while it is still this cheap. Remember, for many here, this is NOT about greed...it is about saving an investment by throwing a fraction of your original investment at it. If the share price goes up as I believe and as apparently Ntephe believes it will since he's buying...and probably multi-fold...then dilution insurance will be the best insurance product we have ever purchased...potentially.
9) Those who know, and those who have studied this stock on a microscopic level deserve to have the ability to get in on the ground floor. These investors have information asymmetry, i.e. information through study of the stock that the general population does not possess. Furthermore, short sellers out there have their focus on many different companies. and cannot understand every facet of ERHC Energy, and are therefore, at a severe disadvantage. This stock, which seemingly guarantees "toxic debt hell"...actually is the complete opposite of that...and short sellers are sincerely befuddled as to how that can be. But many of us, who have become EXPERTS in ERHC Energy know better. We have devoted years if not decades to understanding this industry and this company, and those of us who DO understand...know what an incredible opportunity of a lifetime lies ahead of us.
10) Let us not worry too much about breaching the 3 billion A/S or even a reverse split. Such activity is likely to be handled as part of the buy-out by NGAR through a reverse merger onto the TSX. In other words, any R/S or R/S equivalent through a reverse merger will likely happen AFTER THE FACT...after any buy-out.
Lastly....let's now connect these dots and determine what kind of constellation we have....
...yes. Uh-huh...hmmm, I see it, I see it....
...yup...it's the first constellation of its kind in the entire cosmos. The universe has spoken....
...it is a constellation of a
DOLLAR SIGN. Cha-ching. and of course....KABOOM!
Krombacher
