Addax Petroleum (fka AXC)

[Julius Erving]

Troy,

Regarding your statement:

The reverse split was sold to shareholders BY MANAGEMENT as a step needed to accommodate a strategic investor, and now we see Ntephe trying to farm out another 15%-20%. Where's the strategic investor that was going to save the day?

From the latest 10Q

" PLANS FOR FUNDING OF POTENTIAL ACQUISITIONS
Excerpt" prior to securing potential farm-out on Chad acreage. Said funding steps include but are not limited to the issuance of a series of convertible notes, which the Company has commenced,"


ERHC's future plans will depend on the Company's ability to attract new funding. The Company is implementing a series of steps to fund the geophysical work, including magnetic/gravity and seismic surveys, prior to securing potential farm-out on Chad acreage. Said funding steps include but are not limited to the issuance of a series of convertible notes, which the Company has commenced, issuance of shares of common stock through registered direct offerings, which the Company plans to commence shortly and farm-outs to potential partners on its assets in Africa. The fund raising might include:


Farm-outs of part of the Company’s assets in Kenya, Chad and the Sao Tomé and Príncipe Exclusive Economic Zone


· Issue shares of common stock through a registered direct offering


· Other available financing options

The Company is continuing discussions with several international investment advisory and financial brokerage firms to act as financial advisors and intermediaries to ERHC. While ERHC has always used expert professional assistance to formulate and execute its capital raising initiatives, it is re-focusing on the retention of such advisors and intermediaries as a strategic imperative of the increased funding requirements that arise from the rollout of the new work programs in Chad and Kenya. The new firms retained will perform such financial advisory and investment banking services for the Company as are customary and appropriate in transactions of this type, including assisting the Company in analyzing, structuring, negotiating and effecting proposed capital raises. These initiatives may include any transaction or series of transactions in which one or more capital providers (existing or otherwise) commits debt capital to the Company, purchases equity of the Company (or securities of the Company convertible into equity), or alternatively funds the Company either directly or through farm-ins, farm-outs or other arrangements in which the capital provider earns an interest in oil and gas properties of the Company.

During the quarter ended December 31, 2015, the Company retained the services of Deloitte Corporate Finance LLC (DCF) to advise on the Company's oil assets in the Republics of Chad and Kenya, and to seek new strategic investment into the company itself.

So much for little dumbazz Peter, who obviously does NOT act on his own in these matters! What a reluctance, hahaha.

The Doc.