ssc,
I have two opinions on share price recovery.
First, everyone and their dog should realize that the current share price at anything below .01 has absolutely zero to due with valuation. This stock currently has nearly .02 in book value alone. We are UNFORTUNATELY experiencing the toxic debt spiral. I give current management an "F" in getting into this mess. It absolutely has to play out before the share price can "recover" to valuation. I give management a "B" for getting Chrome to loan $250,000. Again, that is a huge sign to me that they have learned the hard way and we now can find a less painful way to manage these assets. For anyone buying shares today near .002, I would say recovering to .02 would be a 10 bagger. This is NOT an endorsement to management.
Second, after April of this year AND assuming very little to NOTHING has been sold in debentures after Chrome's investment, then the waiting begins again. I think it will take about 6 months for the oil prices to get back to $75+ but with summer coming up, oil prices always rise during that time. Barring any economy collapse, I don't see oil demand going down this summer as apposed to last summer. Any skirmish that sparks around the middle east (Iran/Israel conflict, ISIS, etc) and oil prices bounce higher and quicker. Keep in mind, Russia is dying economically with oil prices at this level. I see them as almost creating the next problem just for their own economic recovery.
This said, I think as we reach 4th quarter of 2015 AND oil prices recover over the summer, I think ERHE's share price could recover back to a true "speculation" stand point. I now have revised my speculation price going into drilling being somewhere in the .10 - .40 range (given NO advancement on Chad, EEZ or JDZ). I would have estimated a .20 - .75 range if the dilution would not have hit from these debentures.
Again, this is no endorsement to management and they have to work hard to stabilize and hold firm to drilling for this to happen (IMHO).
Keep in mind, I also feel if we can survive to oil being that Kenya, Chad, EEZ or JDZ, I still see ERHE being a potential take out target of about $5 (very rough guess) but that may be 3 to 5 years away. This would have been $10+ without the debentures. Again, NO endorsement to management for the financing debacle.
I hope I answered your questions.
