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Both Dan and Peter are jokes, but inevitably the joke may be on us.
They have managed this company like a shell game, and in-spite of it being a registered US company it more closely resembles a Nigerian Poster child.
I get the feeling that all of us minority stockholders feel that there is nothing we can do because one man (a Nigerian) owns the majority of the stock. I am beginning to see that it may be in all of the shareholders interest (that is us) to take our issues directly to the SEC. Simply put, we file a minority shareholder complaint. And we file it against all current officers, DK and the board. I alone, in personal (mostly unprofessional) responses from DK have enough to have him investigated. I can only imagine what the rest of you have.
There are clear rules under Sarbanes Oxley that require companies to be open and honest in their dealings with the investment community. In my humble opinion ERHC has flagrantly disregarded most of them.
I feel that we have put up with the lack of information or in a few cases cryptic information at best thinking that there was some grand plan in place. And Guys and Gals I can't see it.
I feel that it may be in our interest to unify our position give this management group some period of time (maybe 3 months at the most) to come out with the information they have or show us that they have a viable plan in place. Ridiculous info regarding moving to the AIM or buying on-shore producing properties is not at a level appropriate with running a company with these potential assets.
If they cannot show us something within that time-table we take everything to the SEC and ask them to initiate a SOX investigation. Under Whistle Blower protection covenants they have to initiate an investigation.
Anyone else have a better idea?
Bay
Proven,
While I do agree with you, I feel it is simply outrageous the lack of information given by the officers and Communication Director of this company.
This is another snide and puerile response by DK. The level of offensiveness paraded by these clowns knows no bounds. Simply an unbelievable response by a misanthropic group of officers.
Bay
Mid, You are not correct in that statement. I lost over 35,000 options when my former division was purchased by another company. It depends if they are qualified or un-qualified.
Bay
any ideas on why they are all locking up options now and in some cases well above current market value?
Jeter bought below market value and Friday bought way above market salary. Leaves a lot of questions to be answered?
Proven,
Am I reading that correctly?
He bought 85k shares for approx $53k.
Bay
Midtier,
Run your numbers on heavy gas and they are not quite so lopsided.
Condor,
One thing we should all remember is that 1 TCF of 'pipeline quality' gas would equal 168 million barrels of oil.
If gas is heavy or wet (has a lot of condensate) then 1 TCF of gas can be significantly more than 168 million barrels of oil.
Bay
It is somewhat ironic that the end of the 6-month extension comes one (1) day before the 'Ides of March'.
Still holding strong
Bay
that is impossible.
ERHC to list a few does not have the money, expertise, experience or time. it would be impossible for them to attempt a drilling program. And even this management group knows that.
I am very surprised by the number of posters on this board eagerly lining up for the kool-aid.
Our strength is in our assets, dilute those and you reduce our strength.
If I felt that is what my shares were worth i would have sold out on my own and not had ERHC's management do it for me.
As you do not own any shares, why are you here?
KROM,
If they complete this plan then they (ERHC MANAGEMENT) have watered down everyones shares by 28% (assuming they continue to sell at thier current pricing). All for just 50 million dollars and for proposed acquisition(s) that they themselves predict we will probably not agree with. Essentially no matter what happens if they complete this plan then we have all sold over 1/4th of our shares at around two-bits(pitiful). I can only hope BB is correct, as should you.
Bay
Strass,
And if you are correct would it be correct to surmise that the only intent one could possibly concieve is that it is all designed to relieve smaller stockholders of their shares at an extremely low price until such time that real announcements are made regarding what they found?
Bay
The notice below is a prime example of the foresight of ERHC's management group. These guys are absolutely over their heads. Is there anything else they can do to kill this stocks momemtum?
ERHC ENERGY INC. (OTCBB: ERHE) – management has announced that they have done an agreement with an institutional investor for the purchase of approximately $2.0 million of common stock at a price of $0.22 per share from ERHE. The arrangement price is less than the last day closing price of $0.29. This news has put massive pressure on the stock and it has declined sharply by 12% to trade at a price level of $0.26. Investor should expect more pressure and further decline in the ERHE price is inevitable. Investor should stay away from ERHE and look for better opportunity in other undervalued stocks available in the sector.
no they are not telling us that. If that were the case who would buy two million dollars of shares at $.22/share. knowing that in 5 years he would have only a 27% return?
AMJ,
Do you think the Bank Shares could be a shell for SEO, which would have efffectively given him 50.7% of ERHC?
And if to get a deal done SEO had to give up enough shares to reduce his ownership below 50% then dilution would have been the better method for SEO.
If he had gone to the market and sold he would have collapsed the share price. Using dilution (16 million shares)he can hand out a sweetheart deal and still reduce his owneship to just under 50% (or 49.7%)
This is just fabrication on my part, not sure if any of this makes any sense.
Can anyone think of a reason why SEO would need to dilute his ownership percentage
Bay
MROGOP,
With all respect, you are off point.
They sold nothing, they deluted equity, or essentially diluted 2.1% of the shareholder's interest for approx 4 Million.
The only way they could have sold equity was to sell ERHC Treasury stock, and correct me if I am wrong but to my knowledge they have no treasury stock.
The total of 4 Million they will receive is less than 18% of the cash they currently have on hand and really does not tangibly affect their Cash On Hand position.
The reason(s) for this are not clear but in my mind it had to be to help make a final push to get some sort of deal done.
Bay
Mrogop,
What do you mean by sold equity?
From my perspective they watered down all shareholders equity.
And dropped SEO to under 50% as a shareholder?
Please fully explain that statement.
Bay
Thanks Ruby, you did a better job laying that out than I did.
Umbra, I went back and looked at my post and how it came out on the board and I can understand why you came up with that interpretation.
The colon after the list of (in my mind) respected posters was meant to embrace the next line and not be a tie to the prreceding sentence.
Bay
Umbra,
I apologize if I was unclear.
I am NOT referring to you, BB, ERHClongtimer or Jim Long as Bashers. Infact, quite the opposite, please re-read my post.
My point was that we are all saying the same thing. Only using different nomenclature: The delay is due to the majors, Sinopec/Total/SEO and Chevron looking to optimize their positions and at the same time consume as much of the floating stock of ERHC as they can pry lose from smaller shareholders such as ourselves.
Aditionally, I wanted to point out that the presence of old and new bashers (Ponzi,Robjer, etc) validate that there is still much to be deciphered.
Sometimes my lineage (Texan) becomes too pronounced and I am not as clear as I intend to be. For that I apologize.
BAY
It seems that there are a lot of bashers coming out of the woodwork the last 4 trading days, with a lot of new bashers coming out as well or probably just the same old bashers with new monikers. The writing styles are eerily similar.
Unbra, BB, ERHLongtimer, Jim Long, and many others:
It looks like we are all espousing a common theme here but in our own words. That theme is that the intolerable delays are primarily due to the ‘Powers That Be’ looking to eliminate the small rights owners of Blocks 2 thru 4 and at the same time keep the share price down to buy shares from disgusted and dissolute stockholders. Every time the bashers come out in force I get a feeling that our timeline is getting short. You have to ask yourself why these guys would hang around. If you do not like this stock and feel all of us on this board are ingrates why spend your time posting day after day?
While I cannot truly comprehend the mentality of a poster like, say, “Robjer” I would have to think that they have some economic intention with our company. Paid basher’s - I would say probably!
I still think BB is right on-track, though in most of our private messages we disagree on the inherent value of ERHC and the ultimate price that SEO will accept for his stock (and as importantly his connections). And I think that BB will have to agree with me that the more time it takes to come to terms and execute a buyout the closer to my figures we are getting.
As tiresome and tedious as this becomes I would urge everyone to continue to wait it out. The most you will lose is the time value of your investment this stock is so undervalued that it would be hard regardless of the news to push it down much more from here.
But I would like to remind everyone, that in all my experience I have found that Exploration Companies never sit on bad news. It makes no sense for them to do so. Look at Chevrons ANWR well East of Prudhoe Bay. They drilled that well over 25 years ago and still have not released the results. Even though many news stories (including 60 Minutes) have come out on that well and the probability of what it found.
When Sinopec, Total, SEO and Chevron (yes I included Chevron), determine that each have optimized their positions we will have an announcement and a deal. So stay patient and hold steady.
IMO
BayfisherII
TamTam,
Is that an IHUB board?
Guys, I am not trying to beat this to death as it probably is more a product of terminology and where you cut your heels.
But the point I am making is that wet does not indicate exclusively water. Wet just signifies the presence of water, and water is found to varying degrees in most fields across the planet. see below. So what I am saying if Sinopec or Afren indicate a wetzone it does not eliminate the economic viability of that zone. You can produce a wet zone, just very carefully.
Oil (Dry) - Crude oil with little or no water content.
Oil (Wet) - A mixture of crude oil and water which requires further processing to remove the water.
a wet zone where I was raised meant you had water and oil. If anyone has experience producing the Gray Sand in W. Texas you are all too familiar with wet zones and coning.
Bay
No it is not.
Wet can refer to any number of wet zones including Oil, Condensate or water.
bay
Kownski,
Wet does not just mean H20.
A wet zone could refer to Oil or Water.
bay
EXceo,
I appreciate your reply but I really do not agree with you.
#1) They have responded to Midtiers letter. They responded by putting out this last PR. It is my contention that what they put out in no way meets the fiducial obligation they have to us in meeting shareholder communication requirements. Waiting is all we have done and would accomplish nothing in directing them to improve their communication process to ALL stockholders.
2) Hostile move..? How do you come up with that? Is it hostile to insist our Executive team communicate with the shareholders in a manner that is consistent with SEC requirements? And exactly why might you change your mind? Having a reaction like that to an honest request for open communication between the executive group and the shareholders would be purile and petty.
3) I am not sure where you come up with Court Action, while that is an action that is not out of the question it has to be regarded with a more serious intent then we have taken to date and if embarked upon would require a lot more discussion.
It is funny how you use the phrase "patience seems the best course", because your posts over the last 3 years reiterate time and time again how you are out of patience.
This post is not intended to be hostile as I usually enjoy reading your posts, but for some inexplicable reason you seem to have changed direction and I cannot understand why.
One last question: Do you feel the PR ERHC put out yesterday was adequate in regards to everything that has gone on in the last 18 months?
Respectfully,
Bay
Xceo,
Exactly why in your opinion would that be a stupid move?
Bay
Dan,
I will make a stand and say that I am very critical of it.
This is a U.S. company and as such should handle its business in a way that is commensurate with other U.S. companies. The PR was vague, poorly written and was just enough (they hoped) to keep us quiet for a while.
It is not enough, I suggest to Mid that he write a 2nd letter to the BOD and request that they focus their attention on how this company is being managed and how this company communicates with all of its owners.
Bay
Mid,
It would be my suggestion that the letter you wrote to the BOD's on behalf of a group of stockholders is still relevant.
While I appreciate the fact a PR was put out, I still read through it and several questions come to mind:
1) Why is ERHC incapable of sending out a PR to its stockholders, the investment community, and it's Peers that is well written without grammatical or content errors? BB has (through DK)in the past corrected most of the content errors.
2) Why now? The little information that they did post is what DK has beeen telling us they could not release for the last 8 months? What changed? Is this a response to the pressure felt from your potential letter to the BOD and SEC? If so in my opinion as a 5 year stock owner it is inadequate (at best).
3) This PR was way too heavy on inuendo and hypotheticals (not much real news). Have we become ok with that type of dialogue and are we supposed to be happy with any real information they release, regardless of how tangible it may or may not be? a) NSAI figures sometime before EOY. b) Maybe Phase II but also maybe a continuance of Phase I (by the way what the hell is a continuance of Phase I). c) Found gas in 3 of the 5 wells drilled. (which wells, which zones, what type of gas, and how much, how many feet of pay). d) did they find condensate? e) Did they find oil?
Mid we need to keep pushing these guys and require them to be upfront and to do their jobs at a level that is consistent with their peers in the industry. We all know that there is some info that they cannot publish, but they can do much much better than they do.
My 2 cents!
BAY
By the way I predict that our shareprice will have a small positive increase based on the small amount on inadequate info they released.
ERHC has Proven,
I think you are correct I knew it sounded familiar.
Bay
Deadeye,
mromo says just enough and with a bit of a pedigree to make sense but then he also makes statements that make absolutely no sense.
Maybe (just maybe) the MM's have realized that they need a higher priced basher as our sp has continued to stay above .20/share. And most of the original bashers have left.
Mromo no disprespect but again you are making a lot accusations and hypotheticals without any basis to back them up. Exactly what you accuse us (Kool Aid) drinkers of doing.
I still ask you (respectfully) to explain your 'no news is bad news' scenario. In my opinion that makes no sense at all, from every vantage point I review. In fact, the fact that no information has been forthcoming only gives me more reason to believe that the five(5) wells drilled in Phase 1 have encountered more than just isolated intervals of Biogenic Gas.
Respectfully,
Bay
MROMO,
A lot of what you have posted today I find very interesting and much of what you post I agree with. Also I take my hat off to your knowledge of E&P in the GOG.
I agree that both Operators knew to a limited extent exactly what they had found (in this respect, Oil, Condensate, Gas(bio) or Gas(thermo)) in respect to how far into the zone(s) they went. It is still my suspicion that they went to a certain depth and either found what they were expecting or encountered something they were not expecting and pulled out (in this case pressure).
What I do not agree with in your post is that, "no news in this business is bad news". That is contrary to everything I know and have experienced with regard to exploratory drilling.
In existing fields where rights and control are locked I will agree with you, companies love to shout about their success.
In this case these wells are as tight-holed as anythiung I have ever encoutered and I was on the MUKLUK well in the Bering Sea in 1978. We both know you can never keep drilling crews quiet about what they find and we also know that everyone on the rig knows what they are seeing (bit pressure, shaker pit, returns, even tripping pipe will give you some knowledge). My point is I keep searching the blogs to get any crew knowledge and have found nothing. That is very unusual.
My point being if the Operators found nothing or very little it would make a lot of sense for them to quickly release this information as it could give them an edge on the EEZ lease sale.
I know they are different zones but If the JDZ was verified as being a duster (it would) affect pricing in the EEZ that surrounds it. BUT if they found what they thought they would and limited their drilling profile then they could legitimately say they found some gas but needed further analysis.
The Chinese are too desperate to secure their energy future to sit on acreage because of any reluctance to relinquish acreage, they would cut and run if there was nothing there.
The truth is I do not know what they found but my experience in the energy sector tells me that thier silence is not due to the JDZ being a bust.
My interpretation,
Bay
Umbra,
It may be time to look at a class action lawsuit aginst the BOD,
the ERHC Management team, and of course DK.
The negligence and the lack of any kind of informative response of the ERHC management group borders on criminallity. What I cannot fathom is that even if they shake off a few reluctant stockholders and then eventually present a deal to the public any additional earnings they make, they will end up spending defending their actions in court.
It may be in our best interest to send a legal representative (who represents only us) to the next stock holders meeting and then to demand additional information or subject themselves to a vote of confidence. The vote obviously would fail (as we all know how SEO would vote), but it would get our reservations and concerns publicly noted and not allow any of them (in the future) to deny they were ever aware of our concerns.
Bay.
2IRA's what power point?
Total could buy out ERHC lock stock and barrel with their 19 Billion and still have plenty to support a drilling expedition in the JDZ
John, That is certainly possible (though it is close to 100 kilometers from the AKPO. Istead of calling it one or the other I would think that they were looking to see if indeed that was the case as well as seeing what preference they would have if they choose to participate in the EEZ.
Once scenario that makes sense is after Sinopec drilled the BOMU-1 they realized very quickly that they needed a partner with the technolgical experience to produce the JDZ and the EEZ and that would have to be TOTAL. It has taken this long to set everything in motion. It would not surprise me to see it all come out by end of next week.
The question is, are we 'bought out' or 'brought in'?
The lady or the tiger.
all speculation of course,
Bay