ERHC Energy Inc (ERHE)

[snow]

Ruby

To me this seems bad news indeed! The point is what was paid for this stake, which means a valuation of the stake of ERHE in the block.

"In return for obtaining Overt's 5 per cent participating interest in Block 4, Addax Petroleum is obligated to pay:

- US$10 million to Overt as consideration for the interest"

5 % without a signature bonus is valued at about $ 15 million. The stake of ERHE would based on this valuation be valued at about $ 50 million, which is less than 10% of the current market cap of ERHE. Block 4 is supposed to be the most attractive block.