ERHC Energy Inc (ERHE)

[Meridian]

Low, continued

Block Option Retained Sold Cash+ 0%interest full carry
2 30% 22% 8% 20
3 20% 10% 10% 7.5
4 25% 17.7% 7.3% 18


Normally in a no finance situation, the old shareholders would have diluted till below 50% of the orginal position. Typical for an exploration play. And then further dilution for development equity (always required for a single offshore play company in addition to available debt financing).

Conclusion the deal with Addax and Sinopec are excellent.