Addax Petroleum (fka AXC)

[Julius Erving]

SSC,

(...) "valuable assets" actually have significant value, no one will be paying a premium to bale them out

No need for the sarcasm, because of one simple fact:

dilutionfactor = 4

Share price declinefactor = 400

And it is a no brainer that anybody that provides capital, wants a part of ERHC.

The problem we had this year was the share price declinefactor, the dilution factor was also a problem, but way less.

Make no mistake about it, the reverse split is being done for one reason - to enable the issuing of additional dilutive shares.

Only cd's were placed at a an absurd discount, because of the 60% 'rule'. A merger would be at a far more REALISTIC price.

And we agree (I'm not going to discuss what is fair) that ERHC's share price is not a fair value right now. That price is at 15 cents (pre CEPSA drilling decision) without glut oil.

Let me repeat: ERHC would be at AT LEAST 15 cents without glut oil. A merger candidate knows this. Will they therefore pay 15 cents per share right now? NO, of course not.

Will they pay way more than the current share price: HELL YES.

Offor is our 'insurance' guy I'm sure. If a merger candidate is not coming up with a fair value proposal, Offor will decline and use some of his own CHARITY MILLIONS. Why? Simple reason: Because he will be the great benefitter when/if oil is found. He has SHOWED us that he can miss at least 10 million, that is what he donated recently.

Sheer common sense what I'm telling you here.

Why did Offor not do this earlier. Who knows.

But does that imply that Offor is willing to let ERHC bleed to death? I'm afraid we retail investors are WAAAAY, WAAAAAAY out of the loop. Why would he? He can miss those few millions.

Is this why for the first time in ERHC history management is buying shares in a substantial way? Without being afraid of more dilution and losing money on their investment? Or even lose it ALL?

The answer is obvious I think.

Wishful thinking by me? Critical people around me assured me it is not.

The Doc.