Some calculations:
Just imagine that you bought, 200.000 shares in ERHC at an average price of 50 cents, before the glut oil/convertible drama occurred:
You paid the fine some of $100.000,-
Those shares are now worth (2000 x $0.10)= $200,-
Thank you glut oil/convertible notes!
But, before you buy a stool and a rope, what needs to happen to break even on your MASSIVE loss?
If you are willing to invest an additional 1% of your total investment right now, being $1000,- the share price needs to hit $10,- (pre RS = $0.10) to recoup your investment, breaking even. Yes, really.
If you are willing to invest $10.000,- at this very point, what does the share price need to hit in order to get your total invested $110.000,- back?
$10.000,- now brings you 100.000 shares (pre RS = 10.000.000).
To break even, the share price needs to 11 fold from here and now:
The price needs to go to $1.10,- (pre RS = $0.011)
Achievable? If oil is found without a doubt.
Also achievable in the run up to oil these days? Yes, it can imo. Certainly if some pre 'news' from CEPSA is disclosed, regarding the drill.
This is where we are today.
The Doc.
A huge P.S = IF the oil price for whatever reason, like it is expected now, goes up to, let's say, $55,- again this year, the willingness to start 'exploring' oil again will be back, i.e. ERHC share price will rise again solely on that better environment.
Chad and EEZ will be more desirable again, hence a new 'future' again for ERHC, even after Kenya.
AI
