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It's in the Aug 10Q
Someone just sold 140K at .031. Who else but convertible holders would sell at this price. Surely not any of our long term holders.
I don't think your missing anything but I think these convertibles are hurting the stock price now. These convertible holders will sell at any price because they always convert lower and are guaranteed to make a profit no matter how low they sell.
Where was the nearest operational pipeline in the JDZ had we found oil. Why are you always brining up potential negatives instead of positives like finding oil and a pipeline will take care of itself. Isn't a pipeline already planned?
I know you post the truth. The convertibles suck. But we have heard it hundreds of times on both boards.Lets try to find something positive to post that gives us some hope instead of daily gloom and doom.
Seek-Please stop with the negative comments. Now we have both boards we can't read. I know things seem bad but we need some positive comments. Have you already sold your holdings since things look so hopeless to you.
Julius: Please let Dan know what you think of these convertibles. I have e-mail him several times on this matter. He seems to respond to you. If they issue any more of these I am afraid it will be really really bad. Not that it's not bad now.
Was this what you had heard that we perceived as good news??
Since I deal only in opinions, I guess I cannot post what I have heard. Too Bad.
Seek - Do you read the other board? Some good information by ERHClongtimer.
please post what you have heard
i calculate if they issued shares to cover the 611,000 in convertible bonds at an avg of .02 a share ( hopefully not that low) the dilution would be between 3-4 percent.
We need your comments here. You are missed
Seek. I asked DK about the convertibles and as you suspected he couldn't add much to your analysis.
All I can do is direct investors to the very page you sent a link to. There are strict regulations that make it difficult to expand on the information disclosed in the 10-Q. The Company carefully complies with disclosure regulations and the information that is included in the 10-Q is what is required to be disclosed. I can't provide potentially material information -- such as whether convertible notes have been converted. As you noted, the 10-Q includes the terms of the convertible notes and in several cases the terms indicate that some of the lenders have been eligible to convert their notes starting in April (with various calculation periods) with additional notes coming eligible for conversion in May, June, October, November and December (with various calculation periods).
Sincerely,
Daniel Keeney, APR
DPK Public Relations
Some people may choose to sell some now and buy them back in 31 days. They can take the tax loss and retain their position. Of course they are gambling that there is not something (Drilling/Farm out) announced in the next 31 days.
Seek-Could you please look at Page 12 of the 10Q From Aug 14.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10152330
I am confused by some of the convertible notes.
There are 3 that say they are eligible for conversion 180 days after the effective date of the note.
Already converted?
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KMB Worldwide 4/24/2014 $ 100,000 + 180 days eligible 10/24/2014
JSJ Inv 4/29/2014 $ 100,000 + 180 days eligible 10/29/2014
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Coming up soon
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Redwood Fund 5/15/2014 $ 100,000 + 180 days eligible 11/15/2014
KMB Worldwide 6/26/2014 $ 50,000 + 180 days eligible 12/26/2014
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The remaining 4 totaling $250,000 that say they were eligible for conversion immediately. Does that mean that those 4 may have already been converted to stock.
You could also sell now and buy back in 31 days or buy more here and sell your losing shares in 31 days.
It seems like using Krom's low/high you could have bought close to the low (hopefully now) and doubled or tripled your money or sold some and kept free shares. How can you argue with that. Every one should be a trader. Hold a core position and trade around it. Not just for ERHC but maybe TAIPF and others also.
Why do you think TAIPF is down so much.
If ERHC could get financing out of the way without using convertible notes I believe the stock could rise a lot. Convertible notes are ok if they convert a a fixed price. For example .04 a share instead of a percentage of the current stock price. Another company I follow is getting rid of their convertible notes.
Accesswire
23 hours ago
????
Funds Received From New Non-Convertible Financing Used to Repay Debentures
LEAGUE CITY, TX / ACCESSWIRE / November 5, 2014 / ERF Wireless Inc. (ERFB), a leading provider of enterprise-class wireless and broadband products and services, announced that as of November 3, 2014, it has received the initial funding under a new non-convertible funding program and has begun the repayment and termination of a number of its outstanding convertible debentures. As of the date of this press release it had completed the repayment and termination of the first two convertible debentures and is in negotiations with multiple others that are expected to be repaid pending final negotiated agreements.
Here is your answer:
otikipi Basin. That was one of the questions to be answered by the FTG, and ERHC announced on November 26, 2013 that the Lotikipi Basin extends into Block 11A to a larger extent than previous studies had indicated (http://erhc.com/news/positive-results-from-airborne-ftg-survey-of-kenya-block-11a/).
• Anam covers 1,600 square kilometers to the west (in the western portion) of Block 11A.
• Tarach covers 2,500 square kilometers to east (in the eastern portion) of Block 11A.
The information in the document linked below provides a good educational overview about what is known about the subsurface geology in this region and if you search within the document for the word Anam and/or Tarach you will see that they are discussed as well. We are advancing on this knowledge through the FTG and 2D seismic surveys. Obviously, the information linked below is from a third party, so ERHC can’t vouch for the accuracy of the information.
PETROLEUM POTENTIAL OF NW-KENYA RIFT BASINS: A SYNOPSIS OF EVIDENCE AND ISSUES
http://www.epgeology.com/articles/kenya-rift-basin.html
Sincerely,
Daniel Keeney, APR
DPK Public Relations
Here is your answer:
otikipi Basin. That was one of the questions to be answered by the FTG, and ERHC announced on November 26, 2013 that the Lotikipi Basin extends into Block 11A to a larger extent than previous studies had indicated (http://erhc.com/news/positive-results-from-airborne-ftg-survey-of-kenya-block-11a/).
• Anam covers 1,600 square kilometers to the west (in the western portion) of Block 11A.
• Tarach covers 2,500 square kilometers to east (in the eastern portion) of Block 11A.
The information in the document linked below provides a good educational overview about what is known about the subsurface geology in this region and if you search within the document for the word Anam and/or Tarach you will see that they are discussed as well. We are advancing on this knowledge through the FTG and 2D seismic surveys. Obviously, the information linked below is from a third party, so ERHC can’t vouch for the accuracy of the information.
PETROLEUM POTENTIAL OF NW-KENYA RIFT BASINS: A SYNOPSIS OF EVIDENCE AND ISSUES
http://www.epgeology.com/articles/kenya-rift-basin.html
Sincerely,
Daniel Keeney, APR
DPK Public Relations
Please tell us the oil play you added.
Don't expect oil to rally anytime soon but Dan Dicker still sees "super spike" coming
http://finance.yahoo.com/news/don-t-expect-oil-to-rally-anytime-soon-but-dan-dicker-still-sees--super-spike--coming-182113410.html
Don't expect oil to rally anytime soon but Dan Dicker still sees "super spike" coming
http://finance.yahoo.com/news/don-t-expect-oil-to-rally-anytime-soon-but-dan-dicker-still-sees--super-spike--coming-182113410.html
Would CEPSA care about ERHC's current share price? IMO ERHC should buy back the convertible note that matures Nov 15. Surely they can come up with 100K plus interest to do that. It would pay itself back by allowing the share price to rise making future fundraising easier. I have emailed DK about this.
Emdyal: are you happier now? Pr last week on Chad. Pr this week on Kenya. We can't expect a pr every day.
CEPSA must have approved this pr being the operator.
ERHC Energy Inc. Confirms Leads in Kenya Block 11A with Closures of Up to 20 Kilometers
Seismic interpretation expected to mature leads to drillable prospects
HOUSTON, November 5, 2014 – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today announced that ongoing interpretation of 2D seismic data on Kenya Block 11A reveals the presence of several viable leads, some with closures of up to 20 square kilometers. CEPSA as operator, along with their partner ERHC, appointed BGP for the acquisition of 1,086.6 kilometers of 2D seismic data, which was acquired between April and July 2014.
"The possibility of existence of stacked reservoirs, as seen in the Lokichar basin, could be a significant factor in computation of field volumetrics associated with these closures," said Dr. Peter Thuo, General Manager of ERHC Kenya Ltd. "Completion of the ongoing detailed seismic interpretation is expected to mature these leads into drillable prospects."
Leads of similar play types, such as the ones associated with major basin-boundary faults, have been successfully tested in the Lokichar Basin, with reserves of producing more than 600 million barrels of oil in place to date. Other significant proven fields in the region include the Muglad and Melut basins in the South Sudan with 3 billion and 2 billion barrels of oil respectively, and the Albertine Basin in Uganda with 1.7 billion barrels of oil in place.
The full tensor gravity gradiometry (FTG) survey conducted earlier on the Block identified two separate basins, Anam and Tarach, which cover 1,600 square kilometers to the west of Block 11A and 2,500 square kilometers to east, respectively. The basins are estimated to contain up to six to seven kilometers of sediments. Based on the analogy with the Lokichar basin, burial history is sufficient to generate commercial amounts of liquid hydrocarbons.
Bell Geospace acquired over 12,000 square kilometers of FTG data in the Block, on behalf of the contracting parties, during the fourth quarter of 2013. The FTG results enabled the optimization of the 2D seismic program layout, designed to image the subsurface structural features within the two basins.
ERHC holds a 35 percent interest in Block 11A after farming out a 55 percent stake to CEPSA Kenya Limited, a wholly owned affiliate of Compañía Española de Petróleos, S.A.U. (CEPSA). CEPSA is the operator of the Block.
In addition to Kenya Block 11A, ERHC's oil and gas exploration interests extend across the African continent, including the São Tomé and Príncipe Exclusive Economic Zone (EEZ), the Republic of Chad and the Nigeria- São Tomé and Príncipe Joint Development Zone (JDZ).
I asked Dan K if they had officially entered phase 2 in Kenya. Dans response below. I don't believe the could bail now without breaking the terms of the PSC. If they did that I doubt the Govt of Kenya would look kindly on that and put CEPSA in jeopardy for participating in any future blocks in Keyna.
Dan's reply::
recent shareholder update had a subheadline that stated, "Proceeding with Exploration Phase 2 in Kenya Block 11A," and in the text of the update the company explained, "Under the second phase of exploration, which lasts a further two years from the end of the first phase, CEPSA Kenya Limited (a wholly owned affiliate of Compañía Española de Petróleos, S.A.U. (CEPSA)) and ERHC are required to either acquire 3D seismic or proceed directly to drilling one exploration well during the additional two-year exploration period."
So yes, the second phase of exploration is underway. The contracting parties are in the process of identifying the most highly prospective areas through processing, interpreting and analyzing the data that has been gathered to date. They will then determine whether additional 3D seismic is needed or if they have a high enough level of confidence with the existing data to move directly to drilling.
Lower oil prices are not what we want but the prospect of drilling can change everything like in 2009 when oil was much lower than today and ERHC's stock price rose from about .10 to almost $1. Maybe times are different now but if we get positive news from Kenya and Chad the stock could rise again.
On Jan 01 2004 ERHC had $18,343 in cash. They owed a $5,579,000 to Sao Tome. They had liaabilities of over $15,000,000. They had 594,339,805 shares outstanding. The stock price was .31.
Go figure
On Jan 01 2004 ERHC had $18,343 in cash. They owed a $5,579,000 to Sao Tome. They had lialabilities of over $15,000,000. They had 594,339,805 shares outstanding. The stock price was .31.
Go figure
We addressed this question before. It's not an assumption. I believe it has been confirmed the CEPSA/ERHC has entered phase 2 and committed to spend the required 30M. The only unknown is will they do 3D or go directly to drilling.
What would you think a low ball offer for ERHC would be?
Thanks Seek
If there was nothing of interest in Kenya why would CEPSA commit $30M for either drilling or 3D seismic? Does that make sense?
Yes you are correct. That's what I meant. Still a small dilution.
Ok. I understand what you meant now. Can you please respond to my previous post. I would like to know if you agree/disagree with my calculations.
Seek-I believe CEPSA is about our only hope at this point.
Not sure what you mean by this.
CEPSA/ERHC will never drill in Kenya?
ERHC Will never get a partner in Chad?
EEZ will never get a partner in EEZ?
JDZ is dead forever??
Stock price will go to zero?
ERHC will give up all there properties and go out of business?
Stockholders will lose everything?
I agree these convertible notes are bad but what's done is done. Hopefully no more convertible notes. There are 3 notes including the one that matured last week maturing over the next few months for a total of $303,000 plus interest. If all those notes were converted @.0275 by my calculation that would be about 12M shares. A lot of shares but only about .015% of ERHC's total shares outstanding. Not a large dilution. If the note holders sell all 12M shares it may drive the price lower but at some point I think buyers will come in and the price could recover as fast as it went down especially if we get good news.
This is just my opinion. Please tell me if my calculations are correct.