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Another classic comedian. Welcome aboard, Mr. rich.
LOL!
To defeat ISIS/ISIL.
"So the question was what happens to the price when there is no more storage?"
Armageddon. Not even buying AAPL will save you.
It's called excess production because it exceeds demand. That's why the price dropped. Your question "what happens?" has already happened.
The question can't be answered until a year from now when we know the dilution outcome. Do they find another way to fund operations; selling the JDZ?, selling Chad? Strike a deal in the STP-EEZ with a cash component? Accept a corporate buy-in from a "strategic investor at a price that would have been a bargain just a few months ago"?
Things can get a whole lot better than they look right now, and they can still get a whole lot worse. I think we can agree on that.
300M barrels, ERHC hangs on to 20%, assuming per barrel value of $15.
That would get the market cap to a billion... or somewhere between 0.50 and $1 per share at this point.
I suspect that he is. It could be more funding, new exec's, a partnership, etc. I don't know, but I don't think Offor is going to let his potential billion dollar baby go under.
" why do you think that BOD and Thuo etcetera are not buying."
It looks like Ntephe and Odobulu are being held accountable for taking ERHE down toxic lane. IMO, we will see them continue to buy until a more viable funding solution is announced... or they resign.
Offor cannot be happy. His ERHE position has gone from $300 million to $500 thousand. His holdings dropped 90% from the time JDZ drilling was complete to the Share Offering. As bad as that sounds, his holdings have dropped another 98% since last summer when dumb and dumber chose toxic lane as the best path forward.
Offor cannot be happy. I don't think his dismay can be overstated.
Let me correct something I said last night... I did not mean "quad" zeros by June... I meant triple.
Still not a pleasant thought, but a big difference nonetheless.
Are you still buying?
If Keeney wants to protect and advocate the interests of the company he could pick up a few shares... I hear they're on sale!
Krom,
"once the convertible fearmongering is over."
The market will never forget that Ntephe chose his paycheck over the share price and went the the toxic route to insure that he felt no pain while we felt it ALL. There is no assurance that he won't do it again, ESPECIALLY now that he has done it.
Once a CEO has embraced the Armageddon scenario and chosen toxic it's time for a new CEO. Ntephe will never be trusted again, IMO.
I was just poking at Keeney's silliness to quote how many shares they own given the share price and their refusal to add at this level.
That's on my mind to 2IRAs. I really don't see this going over a penny again UNTIL oil is found.
Ntephe and Odobulu have killed the stock, period. They demonstrated willingness to put their salaries ahead of the share price... no matter how detrimental. The market will NEVER forget that. Now there are hundreds of millions of shares bought under a 3rd of a cent. At 6/10ths of a penny these people will be seeing a double, and at 9/10s... a triple. The amount of selling on any run up is going to limit the up potential for YEARS... again, UNLESS oil is found. Why would anyone buy as drilling approaches knowing that there are 100's of millions of shares ready to be dumped? ANY interest in this stock going into drilling will be met with massive dumping by people that bought it "down here".
Dumb and dumber have killed the stock.
Who knows how much lower this will go. We still have the largest wave of convertibles yet to hit in April and then one each in May and June.
I won't be surprised to quad zeros by June. That will take Offor's $30M position in ERHE at the time of the Rights Offering that he backed out of down to an embarrassing $300K. I wonder if he has any regrets?
This whole thing was avoidable with a little management.
Another JOKE by Dan Keeney! LOL
Take note everyone... it's time to load the boat! ERHC Directors own shares:
Dr. Uzoigwe 850,000 shares, or $1445.00
Howard Jeter 850,000 shares, or $1445.00
Friday Oviawe 505,000 shares, or $858.50
Collectively these three financially secure gentlemen own a WHOPPING $3,748.50 worth of ERHE shares.
With that display of confidence I think it's time to LOAD THE BOAT... and then sink it.
Dan Keeney is a joke.
Because they're gonna get cheaper until the toxic spiral stops... period.
Significant money won't flow in until toxic is off the table. That means a significant cash component deal and, middy's biggest wish, Ntephe and Odobulu have to go.
It's doesn't matter if some people trust them or not, together they have shown the they think nothing of destroying the share price with toxic debt. I don't see this stock ever going above a penny again with the two of them still there. It would be foolish to buy knowing that those at the helm think nothing of taking the share price down by a factor of 40 in a few short months. They will never be trusted again.
If they stay in their positions only one thing will take this stock over a penny, a commercial discovery. Absent that it's just to risky buying with people that believe their paycheck is more important than their fiduciary duty to shareholders. The days of the share price running up prior to a drilling event are gone. The trust is gone.
That's the way I see it.
"Does that sound like a sinking ship?"
If could be that the two responsible for this financing nightmare are being held accountable by Offor and buying is a condition of continued employment. Nobody else except Offor is buying. They are:
1.) not interested.
2.) not "required" to buy
3.) furloughed to save cash. If this is the case, maybe they are the ones buying all these shares on the open market? Someone is.
LOL!
"there are more convertibles coming down the pipeline."
Exactly, with each being converted at 60% of the share price and immediately sold. Until a solid deal is signed we're on a downward spiral... a fast one.
The whole thing just sucks.
Reality lies somewhere between the irrational exuberance and the irrational paranoia. Management's recent buying suggests it lies somewhat closer to the former than the latter.
I don't get it either. His shares dropped $30M since the share offering when he didn't participate. He screwed himself... all of us, with that move.
500M shares have traded over the last month...
Assuming virtually all of them were newly printed, ERHE's float is roughly 1.3B shares now. The notes eligible for conversion in April should bring the float up to 1.4B. When Offor converts, let's say at around 0.001, he'll pick up 250M shares and the float will grow to 1.65B.
Offor would own 554M shares out of 1.65B, or 33%. If Offor converts at 0.0005 he retains 43% ownership. If you are in the camp that believes Offor will retain his piece of the pie there are only two possibilities; either Offor is planning to provide more funding, or he is waiting for a conversion at 0.0005.
You obviously have concluded that money cannot be made here. Each of us has worked or is working through that process.
Do you find it self validating to force your conclusion on others?
I loved the last paragraph middy. Well said.
That should have been done long, long ago. Any action now and they would be forced to close their doors. I'm sure there are a few here that would love that. I am not one of them.
Do you know anything about this company?
"The office is in Houston (True), but the BOD, the management, and Offor, are all in Nigeria."(False)
Offor sits in Nigeria. Ntephe is in London. The remaining BOD members and geoscientists/engineers are scattered all over the globe.
It would be interesting to see how many message board basher alias's the guy used to illegally facilitate his game.
Dan Keeney's job is to kiss the butt of anyone that will sign his paycheck... and Dan Keeney has done his job well.
To what cost of ERHC shareholders? We will never know.
I do know that DPKPR has made far more from ERHC than shareholders. He's riding the wave while screwing us.
That's what he does.
Strategyone,
"Now that the share price has over reacted to the situation (purely from a market cap to valuation perspective), EHRE has now turned to Chrome. In the long run, this should both stablize the price back to a truer valuation and give Chrome the benefit of minimizing the dilutive effect to their shares."
It may have played out that way, or maybe Ntephe went to Chrome first and got told "no", so Ntephe went the convertibles route. Maybe he tried to warn Offor about what convertibles would do to the share price, but Offor didn't want to hear it. Then the death spiral started and Offor panicked and stepped in... but with far too little ($250K) and far too late.
Now Offor is forced (by Ntephe's move) to participate in funding the company or lose his control. ERHE has gone from a dime to less than 2/10ths of a cent since last July and they still have a year before drilling in Kenya. It won't be long before Offor's 305M shares aren't 10% of the outstanding unless he continues to provide funds at lower and lower levels.
Offor's refusal to step up and participate in the Share offering at 7.5 cents is costing him way, way more now. He faces losing control of the company unless he pours money in, to fund Ntephe's paycheck (oh, the irony)... and let's not forget Offor's shares were worth $30M last July and $540K now.
Ntephe has cost Offor nearly $30M since last July and now has put Offor into a position that forces him to continue funding Ntephe's paycheck. Ntephe is winning in his game with Offor.
In that scenario I have little doubt that Ntephe's days of running ERHC (into the ground) are running short. Offor cannot be happy.
ROTFL!
They only have them when things are looking good. Don't hold your breath. I think their last "annual" meeting was in 2012.
My guess is the next action of any kind from the BOD will be one or more of them stepping down to distance themselves from the embarrassment of letting Ntephe run this thing into the ground.
Not even close.
Week by week as conversion deadlines approach Notes will be converted to shares at a predetermined discount to market. That's what has been happening. The Notes get coverted, the recipient of the shares sells them to recoup their investment, and the share price declines to the price of the predetermined discount.
To sum it up... using toxics like this they couldn't raise $10m with 5 TRILLION shares... or 50 TRILLION shares.
The few hundred thousand that they have raised to date took the share price from multiple pennies to 1/5th of a cent... all for a few hundred thousand dollars.
$10M? Forget about it.
I too, agree with both of you.
Unfortunately Ntephe is listening to Deloitte, who have likely shorted the stock and plan to hold until zero while they advise Ntephe how to get there quickly.
"Now how would they know, or from where did they get that impression?"
They talked to middy.
Ouch! LOL!
And retail (us) would get whatever price per share the buyout occurred at and not a penny more. Do you think Chrome would pay a penny per share when it's in the 0.003's?
Is that all you want out of your investment after all these years?
The best and surest way to screw the retail shareholder to the MAX is a buyout before proven. We wouldn't get squat.
I'm talking about the share offering. They used it to strip any willing investors so they could crater the share price after Offor backed out.
That's what it looks like anyway.
We all made the same mistake. We were naive enough to think that the Nigerians running ERHE weren't corrupt.
It seems they all are.
It's sad.