You can't always get what you want, but if you try sometimes, you get want you need. Rolling Stones
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I'm with you Troy, the full 18M will be raised. SEO will cover any shares not taken. Enough said, now let's see the PR!
In my account the offering shares have been showing exactly the same way since Feb 28. These shares are shown on a different line then the original shares. This may be because of a different purchase date. I wonder if how these shares are shown will ever change and be cosolidated with the original shares on one line.
I expect to see a PR today or tomorrow detailing the results of the offering.
DeGen
Middy, You indicate an estimate of $30 mil per well, while African oil indicates their cost per well is about $47mil per well for their 10 well drilling program. I would guess it is a lot cheaper when you are doing 10 wells at a time then spudding only 1 or 2 wells. Therefore, my guesstimate would be over $50 mil for EHRHC's first and second well. What do you think?
Now that the offering is closed one must try to guess when the results will be reported and by who. The who could be those handling the offering, or the company itself or from the large shareholders reporting their purchas via the SEC.. Which will come first and when. IMO, we should knew something in less than two weeks and possibly sooner. This is not African time as it only has to do with a stock listed in the US.
How will this delay in finding out the results of the offering effect the share price? IMO, the SP will will stay in the 7 cent range with very low volume during this period. Of course, all of this is based on the fact that there is no news concerning ERHC, especially about a new partnership or other deals not related to the offering.
So let's continue the sit and wait while we hold on to our shares with hands of steel. It would make no sense to sell now before any news about anything and it is difficult to buy more shares after most of us increased our holdings by 33% recently.
Any comments?
Cancellation of the Offering is NOT an option now. My broker has ALREADY listed the new ERHE shares in my account and has taken out the funds to pay for them. These new shares from the offering show on my statement along with my other investments. It appears I can sell them, but I have not asked if I can. I do not see how it is possible to take these shares away unless I approve it. I know this is only on paper, but it sure looks like these shares are mine to do with what I want like any other stock shares in my account.
Has anyone else looked at their account to see if they now "own" more ERHE shares?
Strategy1, I agree with you. This extension is for SEO to get his funds in. SEO waited to the last minute and something got screwed up. You know this IS Africa and involves a great of money. This is the only thing that makes sense.
I have my doubts that the results of the offering will be reported quickly. I have been accustomed to African time with anything this company does. Why should this be different. I predict we hear nothing until April 1, for obvious reasons on that particular date, no fooling!
That means another month of SP stagnation in the 7s. We can only hope for some good news (hopefully a partner) before Fool's Day.
Since I do not lie to my wide, when she asked me about the offering, because of the email from ERHC, I came clean and the argument started. Enough said.
The problem here is the use or definition of mid dollar. It can be interpreted two ways. First, like midway of a dollar or 50 cents. The midpoint of one dollar.
The second way, like if you said mid 2 dollarS (note plural) or mid $3s, most would understand that to be ~$2.50 or ~$3.50.
However, what was state was mid dollar, no plural which could be interpreted as about 50 cents or about a dollar and a half.
Best not to use this term, mid dollar as it could mean two things about a buck a part.
I am sure it was meant to mean 50 cents when stated and Lickety thought it meant $1.50. Does it really matter?
So hope your friend can read the original report in Chinese. Otherwise it might be a "disaster"'
Gremlin, you are overlooking a VERY important fact about what is shown on L2. Lets say MM the MM for TDAmeriitrake has 5 sellers who have placed an order for ERHE ( from their many many clients). Seller1 wants only 7 cents for 10K shares. Sellers 2-5 want 7.1 cents for a million shares each. ONLY the lowest sell price from this MM shows of the chart. Not until the lowest price is filled for this particular MM would the other orders show, even if buyers 2-5 bids are lower than OTHER MMs bids. Each MM may have many clients with many different prices for a stock. Each MM only shows THEIR highest bid and THEIR LOWEST ask from their many clients. This is not hiding bids, but is how the MM system works.
I am disappointed that because of the extension the share price will remain in the 7.5-8 cent range for another month because of arbitrage, but there is nothing that can be done. We all need to cool our heels and sit back and relax until March. I do not expect any progress report for the company on the offering. No early poll results like an election.
I wonder when my broker will "take" the funds needed to complete the purchase of offering shares I purchased? Has anyone yet "paid" for the offering shares?
The reasons given for the extension as very realistic as there are many foreign holders of this stock, especially in Africa, because of the focus of the company is finding oil in Africa. I would imagine mail delivery in some of these third world nations is not on par with the USPS. IMO, this is a valid excuse and any theories that say otherwise are not valid.
After much agonizing over the rights offering, I finally decided to take the plunge for only the initial rights. I had to do some financial juggling to come up with the $37,500, but I have always believed the rights offering was an extremely good opportunity to pick up a huge amount of shares at an unbelievably low price without causing a major change in the market price. I hope my wife realizes this is a good opportunity, IF she finds out about this transaction. So far, I haven't told her or asked her about it, as I know what her answer would be ( A RESOUNDING NO). In any case, I'm in for the initial phase of the rights. By the way, there was no charge from my broker.
De Gen
Ps: I have not kept up with the posts of late.
Dest golf, the share price is being kept artificially low at around 7.5 - 8 cents because of arbitrage. If the SP goes any higher one would sell shares at the higher price, say 9, and exercise the offering at 7.5 for a quick and GUARANTEED 20% profit in less than a month. So the SP will remain in this 7.5 - 8 cent range until the end of Jan. Watch for a nice increase in the SP once the offering closes. This is all IMO, but it makes sense.
jsc, was typeo a "typo"?
As far as ERHC not attending the Nigerian conference it could be that at the present time ERHC's plate is full. Maybe their resources are being stretched too thin and they cannot afford to pay entry fees for more projects. Many they have more projects already in the works which fill their plate even more. Sometimes it's good to get your existing ducks in a row before trying to acquire more ducks. In the past year, ERHC has started enough projects to keep them very busy, so maybe they realize it's time to concentrate on what they have and not try to get more at this time. It makes sense to me, seeing what is presently going on.
The response from Wells to my email, I will call tomorrow:
This message is in response to your recent communication, which was
received on 01/02/2013 and assigned Case ID 12492837.
We understand your concern regarding this offer. Unfortunately, via
email we can not accept any type of trading instructions. There is not
a form we send. However, if you call a trader at the number listed
below, a representative would be happy to take your instructions for the
offer.
If you have any questions, or would like additional assistance with your
account, please do not hesitate to call WellsTrade anytime at
Here is my email to Wells. Anyone can cut and paste this to send to their Broker.
A stock I own in my account, ERHC Energy (ERHE) has recently PRed a stock offering whereby owners of the stock have the rights to buy more shares through the company itself at a fixed price. The shareholders are required to fill out and send in a form along with money to buy the shares DIRECTLY to the company. This form is supposed to be provided by the Brokerage Company that hold the shares for the stockholder. Can you please provide this form to me ASAP.
Although I have not seen the form, nor has my Broker (Wells Fargo), the process is not that complicated. You fill out the form along with a cashier's for the amount amount of shares you want to buy and send it in. That's pretty simple.
I think if everyone here "bugs" their broker to send them this form someone should get it soon and post it. I will Email my Broker about this form.
Is the difficutlt question "will ERHC be better off if the offering provides enough money to fund the necessary testing in Chad and Kenya?". I would suggest you reread my The Big Picture post (below).
The Big Picture
Let's try to put ourselves in SEO's shoes but first make a few assumptions.
The easiest one is that he has inside info and that either Chad or Kenya will very likely produce oil and the share price will fly. But in order for this to happen ERHC needs money to fund the operations but does not have it. Also, SEO wants to get a bigger piece of the action as cheaply as possible. What are his choices? To get a bigger piece of the pie he could buy more shares on the open market but that would push up the share price and cost him MUCH more than the present company offering.
As far as ERHC getting the funds SEO could just loan the company money at a reasonable interest rate but SEO would not get any more shares.
So SEO suggested to Peter N the current share offering which would allow SEO to buy a huge amount of shares cheaply without pushing up the share price. But this plan would allow SEO to increase his ownership percentage only if the minority shareholders did not fully participate. How could SEO control the lack of participation legally? SEO could keep the other shareholders in the dark about his plans causing a great deal of anxiety, uncertainty and fear by the minority shareholders and thus allow SEO to pick up extra shares. All very legal and exactly what SEO likely wants.
Sounds like what is happening and will very likely work. Is this whole process that hard to understand so that there are hundreds of posts trying to figure it out.
I believe the offering is worth participating in for everyone that can afford it. I believe in Feb/Mar the share price will be at double the offering price. I wish I could convince my wife why this offering is worth doing, but it's like talking to wall and then hearing how much money has been been lost already. The good part is I still have all my shares and that is enough shares to still make a great deal of money once oil is found. It is just a matter of time until that happens.
I have one very important question about your Good Samaritan post.
Is SEO a Good Samaritan?
Ps: great post
It appears there are only a few here that have negative opinions about the offering. But these few are very vocal. There are also a few very vocal posters that are VERY positive about the offering. IMO, most here believe the offering is very good for the company and will participate if they can financially. The survey taken backs up my opinion, but since the survey a while back, there have been 100's of posts about the offering and some shareholders may have changed their opinion. I would like to see another survey posted to see if things have changed now this this offering has been hashed over so much.
The Big Picture
Let's try to put ourselves in SEO's shoes but first make a few assumptions.
The easiest one is that he has inside info and that either Chad or Kenya will very likely produce oil and the share price will fly. But in order for this to happen ERHC needs money to fund the operations but does not have it. Also, SEO wants to get a bigger piece of the action as cheaply as possible. What are his choices? To get a bigger piece of the pie he could buy more shares on the open market but that would push up the share price and cost him MUCH more than the present company offering.
As far as ERHC getting the funds SEO could just loan the company money at a reasonable interest rate but SEO would not get any more shares.
So SEO suggested to Peter N the current share offering which would allow SEO to buy a huge amount of shares cheaply without pushing up the share price. But this plan would allow SEO to increase his ownership percentage only if the minority shareholders did not fully participate. How could SEO control the lack of participation legally? SEO could keep the other shareholders in the dark about his plans causing a great deal of anxiety, uncertainty and fear by the minority shareholders and thus allow SEO to pick up extra shares. All very legal and exactly what SEO likely wants.
Sounds like what is happening and will very likely work. Is this whole process that hard to understand so that there are hundreds of posts trying to figure it out.
I believe the offering is worth participating in for everyone that can afford it. I believe in Feb/Mar the share price will be at double the offering price. I wish I could convince my wife why this offering is worth doing, but it's like talking to wall and then hearing how much money has been been lost already. The good part is I still have all my shares and that is enough shares to still make a great deal of money once oil is found. It is just a matter of time until that happens.
Krom/Badog, in Vegas that looks like, smells like and tastes like "the fix is in". So don' t bet against it. But since I no longer live in Vegas, maybe I should stop talking like a degenerate gambler. In fact, maybe I should change my name. Maybe Degenerate Beach Bum or Old Fart from Florida. Nah, I stick with what I know best, Gambling. And yes, they do have beautiful Casinos in Florida, on par with the Strip in Vegas. If anyone has been to the Hardrock casino in Hollywood/Ft. Lauderdale you know what I am talking about. Plus, they have "good" gambling as well.
In any case I have fell in love with Naples and wonder why I had not moved here sooner. I have lived and visited many, many places in the US and abroad, but I have not found anything better than Naples, FL. No offense to California and Texaa, been there there, done that.
DeGen
One has up until April 15, 2013 to fund the 2012 IRA account. So it is very likely one will be able to fund both the 2012 IRA account year and the 2013 IRA account year with ERHC's offering.
The above may be wrong, but I doubt it!
DeGen
I guess with market closed the last two days there was a lot of pent up demand.
Maybe everyone is waiting to see what is up with African Oil.
If I bought a property from you that you indicated was 10 Acres more or less and it turned out to be only 7 Acres, you would lose in Court. More or less indicates a small fraction more or less, not a 30% shortage. That is WAY beyond the definition of more or less.
The error in the ERHC parcels is also way beyond more or less and needs to be corrected.
I have given ERHC free legal assistance in the past without being asked when I wrote to the DOJ many times and helped get a written clearance of the charges. I know they read this board and I strongly advise ERHC to correct the acreage figures in their filings and more importantly in their contract with Chad. It appears ERHC will not listen to Krom, but maybe they will listen to me.
I am not sure about oil acreage, but in selling Real Estate here in America, if you list the boundaries (either lot dimensions or metes and bounds) that accurately define the lot, but then indicate the lot is say 10 Acres and it if really only 7 Acres, you are in for a lawsuit. After a sale of this parcel for $100,000, the courts will likely reduce the sales prices to $70,000 when the "error" is found out by the buyer. The buyer thought he was getting 10 Acres and only got 7 Acres even though the legal boundaries were correctly defined and disclosed to the buyer.
Krom, keep the pressure on, ERHC can not and should not have these kind of misrepresentations (mistakes!) in their portfolio of their rights. My money is on Chad causing this mistake and ERHC does not want to rock their boat. But ERHC needs to correct the matter even if they do not want to confront Chad, they have to do it.
DeGen
Iam willing to step forward and admit i thought management was wasting money on seminars, but as it turned out, this saved the company. My perspective of management has changed dramatically from very critical to now praising what they have accomplished.
I think everyone, including Middy, should publically admit they were wrong about the management being wasteful or to not having the abilities to properly run the company.
The new ERHC has Chad and Kenya. The old ERHC had the JDZ & EEZ which are now on the back burner if not put away in the closet ( or attic) in storage for possible future use. The new face of ERHC is Kenya and Chad and we can thank ERHC's management (especially Sylvan) for pulling this rabbit out of the hat. Without Kenya and Chad there would be little hope and the JDZ and EEZ are so far from producing any oil.
I have to retract any of my past critisizum of ERHC management as they has now proven themselves worthwhile with Kenya and Chad. I do not know where the money will come from or how my wife will react, but I will do my best to purchase the offering as the future of ERHC looks very bright
DeGen
Ps: Special thanks to Middy, PeteTX, and TOB for their great reporting and analysis
I would expect the Houston Chronical artical would boost up the SP today. We will find out soon enough.
It is nice to see someone talking about the share price instead of this endless discussion about how "good" ERHE's block in Kenya is.
I am shocked that the share price has risen so much over the past few weeks after the dilution announcement. Normally with dilution causes people to run for the hills and the share price tanks. Who here was expecting this kind of rise in the share price preceding the offering? Is anyone else shocked?
I would expect there would be more discussion/speculation on why this unexpected rise is occurring. I have to speculate that someone knows something, like inside information, and this information MUST be good news. The trading volume has been good although not extremely high, but high enough to indicate something is going on.
Looking at Level 2 there is a buy order for 100,000 at 13.95 and a large sell order (58K) at 15. So the SP should hold close to 14 for a while. However, with this constant pressure pushing up the SP, I thing the SP will break through 15 by the end of the week.
I am hoping for some REAL positive news ( maybe a partnership announcement) very soon to boost the SP into the 20's. My hope springs eternal. Any thoughts out there?
DeGen
It looks like the heavy buying will give the share price the needed boost to get us back to the recent high in the 15s. It appears someone knows "something" and is gathering shares. I find this very ironic with the forthcoming share dilution. Normally, with dilution on the horizon, share prices tank. Can the ERHC dilution be for something worthwhile that has yet to be disclosed but is known by " insiders" who have leaked this information to their friends? You make the call. Only time will tell and that time is not to far away.
DeGen
Ps: To be open and honest, it is very unlikely I will be putting any more money into this stock although in my judgment buying into the offering will probably be justified (but awaiting more details). I am over extended in ERHC and putting any more money into this is STRICKLY PROHIBITED by my wife.
Badog, please reread my post. No where did I say or indicate I was worried about SEO getting more control. Whether he does or doesn't does not matter, since SEO already has enough control. I am certainly not worried about SEO present or future control as nothing is not going to change SEO's control of the company.
As far as holes in my boat, as of now, I do not see any, but I will admit information about "holes" has not been forthcoming from ERHC. Maybe we need a NSAI report to help reveal any holes. Also, some holes may be good as there may be oil at the bottom of the hole when the hole is drilled.
DeGen
Badog, you ask, why would the company keep positive information a secret? The answer is simple, SEO would get in "cheaper" with little information to help the offering. SEO would get greater control. SEO would make MORE MONEY if the minority shareholders fail to participate and he gets more shares. If SEO can keep the company from releasing good news he may just do it. SEO has never helped the minority shareholders, SEO is out for himself. Now wasn't that answer simple? I sure you knew that before you asked, you certainly are sharp enough to figure that out.
Information or no information, one should either row with SEO, since he IS THE CAPTAIN OF THE BOAT or jump ship. Rowing against the crew makes no sense. Please start rowing in the right direction.
DeGen
emdyal,
Which way are you rowing? Are you helping the company progress or hindering the company from going forward.
DeGen
Ps: Can I borrow your oars to hit you over the head and knock some sense in! (lol)
Although it is very difficult to make an educated decision whether the new share will be beneficial to those who partake in the offering since at the moment we do not have any information how the money will be spent.
But if we look at the big picture, in order for this offering to be funded, SEO must be a participant. If SEO is going along with this share offering he must believe it is for the good for the company and good for the stock price. SEO has the most to lose and MUST have inside information to agree to the plan and participate in it.
The question for the minority shareholders ( that's us) is whether we are behind SEO or not. I see no reason to abandon SEO as he has been the glue that has held this company together since he came aboard. Aside from his other dealings, he is still THE MAN IN CONTROL at ERHC. That is an undeniable fact that must be accepted by all if us. Are you with SEO or against him?
We are all in the same boat, so you can row with the captain or try to row against where we are trying to go. Those that continue to row in the wrong direction should get out of the boat as they are impeding the progress.
I too want to thank Tryoty and TOB for there endless efforts to bring to light a better understanding of ERHC's 3B total number of shares approval. The company is now taking an active approach to developing its assets. Previously, its deep water assets of the JDZ and EEZ could not be developed by ERHC and therefore a partner was needed to carry ERHC and to do the drilling. With Chad and Kenya, ERHC has now taken the "we can do this alone approach" IF we had the money. In order to do this approach new shares MUST be issued to provide funding. Is there a better way to do this? The other way of bringing in partners gives up too much of a good thing. The Kenya assets give the impression of an easy oil find and almost a sure thing. But we have heard that "sure thing" before in the JDZ and everyone must realize that in the oil business there is no sure thing. But I am willing to continue to take my chances with ERHC's management and give them a trusting, go for it!
It is really amazing how ERHC has transformed a nearly hopeless company that could only rely on Sinopec and Phase 2 of the JDZ and the years away EEZ into something that could be drilling for (AND FINDING) oil in the next 2-3 years. Can you wait 2-3 years to see what develops? I know I can.
No comment!
Does anyone think this latest 10Q will cause the SP the go up Thurs/Fri?
Can the SP get back to 15 cents and sustain that level the following week?
We will find out soon enough.
I would rather see real news like Partners in Chad, Kenya, or EEZ, or news about Phase 2 of the JDZ.
News about real financing would also be VERY welcomed.
Something must happen sooooooon.