ERHC Energy Inc (ERHE)

[tryoty]

Strategyone,

"Now that the share price has over reacted to the situation (purely from a market cap to valuation perspective), EHRE has now turned to Chrome. In the long run, this should both stablize the price back to a truer valuation and give Chrome the benefit of minimizing the dilutive effect to their shares."

It may have played out that way, or maybe Ntephe went to Chrome first and got told "no", so Ntephe went the convertibles route. Maybe he tried to warn Offor about what convertibles would do to the share price, but Offor didn't want to hear it. Then the death spiral started and Offor panicked and stepped in... but with far too little ($250K) and far too late.

Now Offor is forced (by Ntephe's move) to participate in funding the company or lose his control. ERHE has gone from a dime to less than 2/10ths of a cent since last July and they still have a year before drilling in Kenya. It won't be long before Offor's 305M shares aren't 10% of the outstanding unless he continues to provide funds at lower and lower levels.

Offor's refusal to step up and participate in the Share offering at 7.5 cents is costing him way, way more now. He faces losing control of the company unless he pours money in, to fund Ntephe's paycheck (oh, the irony)... and let's not forget Offor's shares were worth $30M last July and $540K now.

Ntephe has cost Offor nearly $30M since last July and now has put Offor into a position that forces him to continue funding Ntephe's paycheck. Ntephe is winning in his game with Offor.

In that scenario I have little doubt that Ntephe's days of running ERHC (into the ground) are running short. Offor cannot be happy.