ERHC Energy Inc (ERHE)

[midtieroil]

This 10Q is a complete and utter disaster. Apparently someone forgot to file an NOL carryback form which turned a $2 million income tax receivable into what is now a $2.7 million liability. That is almost a $5 million screw-up. I guess some will try to minimize and justify this too.

And to make matters worse, ERHC is trying to tell us they just learned of this which I believe to be totally false. They had to know this for years as it was going through the audit process and then to Tax Court. They chose to hide it from us even after the Tax Court decision.

Now they are also expressing questions about whether ERHC is a going concern.

To make matters worse the IRS has filed a lien against ERHC.

And where is the money from Kosmos. Apparently most of it will be going straight to the IRS if ERHC even gets it. I see no accrual for it or mention of it in the 10Q. Where is the money for drilling going to come from now?