ERHC Energy Inc (ERHE)

[midtieroil]

I agree. If you think toxic debt is good than this was great financing. IMO it was awful. Plus the terms of some of that debt are only 6 months and will need to be repaid or converted as early as October. That could be the reason for the recent slide in share price as the debenture holders try to maximize the shares they receive on conversion. Combine that with an average interest rate around 8% and an upfront fee of 10% and then you see just how great this financing really was. Bottom line is if you need the money bad enough, you pay the price no matter how steep it is. I just wish I knew if the reason they did such a small amount was because that was all they could get or if it was because that was all they wanted. And why so many parties involved with so little for each. I have NEVER seen that before.

I have never been one to stick my head in the sand. All I know is I am glad I am out. Maybe I'll check back in 6 months and see if any real progress has been made. After all, this is September and some have been saying for years that the JDZ would magically come to life this month after 5 long years had passed. I doubt that will happen.

I still think a well will be drilled in Kenya but I see it being 12-18 months away at best. And no, I don't think CEPSA will opt for 3D and I don't think they will leave either. However, if they do go to 3D doesn't that eat up ERHC's carry? Then where does the money to drill come from? I'm outta here. Good luck.