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Strat, that seems like a lot of work to do. Why not just sell the Kenyan asset to the buyer?
The only answer is ERHC (ERHE) the company, has a reputation and baggage that it can never get away from... IMO, for good reason. That's the only reason to transfer asset to shells and sell the old company, etc. And how would current shareholders be treated in this transaction, sold of with the old company? Then we lose access to the other assets.
Ntephe is a completely, and I mean completely, out of his league in the CEO position. Every day that he doesn't clarify what's happening is another example of his failure as a CEO. All of these guess people are making only harm the company and it's shareholders.
Anyone's guess.
It doesn't mean he ever was, either.
IMO, no, they won't be buying any more. Once the rig starts moving they have access to information almost daily that we do not have. They would be accused of trading on non-public information.
IMO, they have their fill. Buckle up and hang on. This is going to be excitifying and terraciting!
CEPSA **backed out** of a partnership with Tullow/Swala in Kenya 12B and **joined ERHC Energy** to drill block 11A in Kenya. IMO, CEPSA has been and will continue to accommodate ERHC within reason.
CEPSA didn't just join ERHC to drill 11A, IMO. They have their eye on the big prize. I think if there is a strike in 11A CEPSA will take ERHC out at a nice premium over the value of that strike.
Why wouldn't they? They would get all of ERHC's 11A (-10% Circle, etc) which would be significantly derisked by the discovery... and they get Chad, the JDZ (where there are rumblings) and the huge STP-EEZ block. CEPSA could get a very nice set of properties from just one strike this month. I think *all* shareholders *and* the management of this company are ready to right the final chapter. All in all, this story has been pretty bad and the book will never make the top seller list.
Hey, I might see my oft predicted $14 per share yet. LOL! The market cap was $100M with neither oil nor drilling in sight. A discovery will be a game changer, and there will NOT be time to "get in".
If the logs show oil, my guess is CEPSA will make an offer almost immediately, and the share price will reflect that offer, also immediately.
This is an exciting and anxious period for this company.
The reverse split was sold to shareholders BY MANAGEMENT as a step needed to accommodate a strategic investor, and now we see Ntephe trying to farm out another 15%-20%. Where's the strategic investor that was going to save the day?
Does he realize that with that kind of dilution those 140+ million shares that he an Odobulu bought would only buy a high-price car *if* oil is found??? With what they paid for those shares they wouldn't even break even WITH A DISCOVERY?
How many fraudulent statements and outright LIES can Ntephe and Odobulu tell and not be held accountable?
Offor should be embarrassed that he has stood by these guys this long. We all should.
ERHC's STP-EEZ block is the holy grail... it's bigger than all of ERHC's JDZ blocks combined. Whatever is headed our way will have surviving until that block is drilled as the priority.
I think.
Well maybe.
Hell, I don't know. Nothing they do makes any sense.
Not until the IRS gets paid. The timing of that bomb is unnerving at best.
ROTFL!
"What will take to get us to 3.00$+? "
That price puts the market cap back to where it was before the convertible fiasco and still 2 years from drilling... and with no oil. A "find of any kind" would de-risk the entire area and I think, depending on the size of the find, that $20-$30 is likely.
But I also think fireworks are going to go off before drilling too. The JDZ isn't dead, IMO.
LOL! My apologies king, I read "a little diversion, I found this interesting" and jumped to Google with the coordinates.
Certainly not trying to steal your thunder, like I could anyway!
Thanks for the post, I did find it interesting.
kingpin, I looked into the coordinates you gave and found this...
Sorry for the order, but look at them this way:
1.) Bottom right, the image ERHC use when announcing the seismic had begun.
2.) Top left, ERHC's Kenya block 11A borders.
3.) Bottom right, kingpin's coordinates on a Kenya map roughly to scale with the block border map above it.
4.) a zoomed in satellite view of the coordinates provided by kingpin.
My conclusion? This is the location of the camp used during the seismic shoot.
I'm still trying to figure out where the word "employment" came from in my post! I typed the rest of it, but not "employment".
Employment. Please *TRY* to keep an adult perspective.
Let's say you're right. Given that assumption, why is this management still there? Offor has many millions of his own money invested in this, and at one point his position was worth over $300M. If you are right and ERHC management squandered the $720M market cap it once had, why did Offor not instruct the BOD to find competent management?
Please don't disrespect me with some argumentative flippant answer. Give it some thought and come up with most likely scenarios. I'd like everyone to post their thoughts, but I know how this will play out. People are going to dream up every worst case scenario they can instead of giving an honest answer.
Offor not doing anything while $300M went *poof!* makes no sense. I don't care how loyal management is to Offor, wiping out his investment is grounds for termination.
The word "altitude" in my mind is inappropriate for the current 1/10th of a penny pre-RS price level. This share price is a JOKE.
LOL!
Odobulu is the Chief Financial Officer...
Will Ntephe hold him accountable and fire him?
Will Offor hold both Ntephe and Odobulu accountable and fire them?
Do any of the 3 men care how pathetic they look in the public eye?
Hell, I don't know the answer to any of these questions.
I think I summed it up as best I can. LOL!
I'll get excited when it breaks above $3. You know, the same market cap is had before Peter Ntephe showed he wasn't fit for the CEO title. $3 puts this back where it was before the convertible debt fiasco and when it was still 2 years from drilling.
We are weeks from drilling. If this stock can't run to $3-$5 it will be because a completely incompetent CEO eliminated any and all trust that investors had.
IMO, Ntephe and Odobulu know that they killed any significant move prior to finding actual oil when they chose toxic financing. I'd guess that more than 20 million of the now 30 million shares out are just looking for an exit. That alone will kill any pre-discovery run.
The only way we're going to see fair value is **if** there is a discovery and **when** they sell the company.
I saw an internet company run from 37 cents to $29 in seven months from December 1998-July 1999... ERHE had that potential until the blunder twins, Ntephe and Odobulu, chose toxic and then SPIT in shareholders faces by calling it "quick and attractive".
Now it will take oil, and if they miss next month, either Offor steps in with a big infusion or we'll be further squashed by more toxic debt. Trust me, even if Offor steps in we will be crushed by the dilution.
Ntephe and Odobulu screwed us all by writing "Penny stock scam" all over this stock when they chose the convertible debt death spiral. FWIW, I'm holding on because I consider a 20% chance of success with this well pretty damn good odds at reversing all of the losses from the last decade.
Just in case you couldn't tell, I do NOT appreciate them robbing me of the ability to take my chips and go home when *I* want to. Because of the distrust in these two I have to wait for a discovery *IF* there is one and I have to wait for *them* to sell the company because the distrust that they have created by not being able to do anything right will prevent a run to fair value.
The market's expectation will always be that they will screw up again.
I think he may be confusing JDZ block 1 with the EEZ. That's the only thing that makes sense to me.
I will, and I ask you and everyone else to dig and contribute as well.
The more info, the better.
This close to drilling anyone converting may choose to hold the shares anyway.
THAT looks like the end of the convertible debt! That is about how much was left.
Edit, I thought I saw $256K purchase at first. Still a big purchase though.
Sounds like a revisionist history lesson. The reality is that **NOBODY** was awarded blocks in the EEZ because the Sao Tomeans kept tripping over themselves and not getting it done.
Equator and ERHC were the FIRST to be awarded blocks and BOTH occured in February of 2010 so quit pretending that it happened any other way.
Just because you say it doesn't make it true, the FACTS are clearly available to anyone willing to look. There wasn't a single company, not one, that was awarded blocks before February 2010, so quit making up B.S. that ERHC was somehow at fault when no other company could clear the hurdle of Sao Tomean greed.
I contacted this guy and asked for clarification on his claim that oil has been found. He actually replied:
"Hi Troy,
I'm a little bit bound by confidentiality since I am a consultant to one of the companies, but you might look into two Nigerian firms operating in part with an American company.
Good luck -- Eric
Sent from my iPhone
On Feb 22, 2016, at 7:25 AM, Troy <xxxxxxxxxx@xxxxxxx.xx.com> wrote:
Hi,
I am a private investor and would like to ask you to clarify this statement I found in an interview you did with The Oil and Gas Year:
Gabon should be looking towards a regionalisation of efforts. Investors do not want to limit themselves to one market only. Some finds are being made in the exclusive economic zone of São Tomé. There may be gas there too, and investors will be much more attracted to the idea of a gas consortium than simply that of just one country.
www.theoilandgasyear.com/interviews/overhaul-gabons-hydrocarbons/
Specifically, what oil has been found in the STP-EEZ? By who, as in what company?
Thank you for taking the time to answer my questions.
Sincerely,
Troy"
Being "familiar" with companies surviving on toxic debt is not on my bucket list.
king...
I can't PM and want to ask you something...
Send me an email from where I can contact you:
tryoty1@gmail.com
I know what you mean. It's not like there aren't some hurdles along the way, but $5, $10... $40 this year are possible.
Why make stuff up that can be so easily disproven?
"They've had this property for over a decade"
"ERHC Energy Inc. Announces Block Awards in São Tomé & Príncipe Exclusive Economic Zone
HOUSTON, February 16, 2010 – ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, today announced that the National Petroleum Agency of São Tomé & Príncipe (ANP-STP) on behalf of the Government of São Tomé and Principe has confirmed the award to ERHC of 100 percent working interests in Blocks 4 and 11 of the São Tomé & Príncipe Exclusive Economic Zone (EEZ)."
http://erhc.com/news/erhc-energy-inc-announces-block-awards-in-sao-tome-principe-exclusive-economic-zone/
If Reginald Fubara is a major shareholder I take that to mean more than 5%, so where is his Form 4 filing(s)???
Sigh. Carry on.
From the company's PR:
"ERHC is currently finalizing proposals with advisers for capital restructuring to firm up the balance sheet and position the company for new investment.
•New investment may include mergers and acquisitions.
•ERHC's expected catalysts for value enhancement remain our exploration assets in Kenya, Chad, EEZ and the JDZ.
"
Thos two points are very interesting, especial the fact that they chose to use the JDZ in the catalysts for value enhancement.
35M. I realize it could be much higher, but until we have concrete numbers that's the number I used. If the strategic investor doesn't materialize with a cash infusion and Ntephe turns to debt again, which I have clearly explained cannot happen and why, then obviously that range will need revising.
$20 is perfectly reasonable if this first well is a success. It would put the market cap around $700M.
Considering that the market cap was higher than that prior to drilling the JDZ I think it's more than reasonable to acknowledge that ERHE could exceed that in the very near future with a discovery. It would derisk the entire block. This thing will fly!
$20-$40 or more is what success next month will mean.
Stay tuned.
lmlt, are *you* the person that started the kaboom rumor?
You seem to know, you tell them.
I agree that it's ridiculous for anyone to claim they are drilling now. With $250K of debt to still be converted they would be screaming from the mountain tops to attract buyers.
But then again, for all we know, the last rounds of CD's were to entities intent on holding the discounted shares they got. The conversions will increase the outstanding, but if they don't sell the price will hold, which appears to be the case.
If true, the addition dilution won't be much over 3M more shares... and on to drilling in 5 weeks or less..
They have never said anything but "drilling is schedule to begin by the end of the first quarter".
They never said by year end.
ssc, this scenario will not happen. Will NOT. Why?
Because it is mathematically impossible. They raised a paltry $2M by leveraging their $90M market cap and crushing it to just $900K.
With the market cap at $2.4M, the same ration would be to raise $53K only to end up with a market of $24,000.
Raising capital via toxic debt from this level to pay for more than lunch isn't feasible let alone paying for drilling.
Yet they bough the stock... there has to be another plan.