Eland was able to structure a deal and get on the AIM that had the Elcrest partnership with Starcrest as a minority partner. So a deal with Starcrest and ERHC as minority partners and someone else as the majority partner in some joint venture arrangement is a possibility.
But then you have to look at what each has to contribute to such a joint venture. ERHC has mostly liabilities that must be paid off along with lots of issues in all of their exploration blocks. Starcrest would have the vast majority of the value with their ownership of a producing property within Elcrest and two exploration blocks in Nigeria which are owned free and clear.
So what you would have is an outside entity owning say 55%. That would leave ERHC and Starcrest with 45%,at best.
So how much of that would ERHC get? With all their liabilities and issues they'd be lucky to end up with 5% to 10%.
Bottom line is, there are a lot of pieces which would have to come together in a very complex transaction. And even if they do, ERHC shareholders would end up with a very small minority interest in a company that would be a long way from drilling anything, anywhere.
I guess the above scenario is better than bankruptcy but I will have to see it get done before I believe it.
Keep in mind too that Chrome's interest in ERHC is worth almost nothing after all the dilution. They have no incentive to give away something for nothing.
Also, I don't believe for a second that Eland has any interest in this type of deal. There has been zero interest expressed by Eland. They have their own company to run.
