Addax Petroleum (fka AXC)

[Strategyone]

Exactly oil-cowboy

If the dollars are on the table you can bet your arse they'll take it. And what, sell CDs all year to float the boat??

ERHE is currently valued at approx. $2.5 million dollars. If oil is found and CEPSA steps to the table with a cash offer of $50 - $100 million or more.... Capital gains will be the last thing on their mind to worry about. Keep in mind, CEPSA just invested $30 million dollars on behalf of ERHE for their share of this asset before any oil discovery. Imagine what it will be worth to CEPSA when they know the risk is eliminated.....

They (ERHE) have already set up the awaiting shells to rearrange or isolate the Kenya asset. They will separate the assets equitably for all shareholders (yes, including PN SO and SEO since they are majority shareholders). Then, which ever asset is holding the Kenya rights will be sold. There is likely plenty of long term held shares by SEO, PN and SO that will reduce that tax hit and also make it worth the wait for all.

Not only that, but if done correctly, every shareholder here will automatically be holding shares of the non-sold entity (proportionately) AND have an influx of cash to boot. PN,SEO,SO will be sitting ready to do the exact same plan with the remaining assets and they will have a huge recent success story to show NEW investors to cover those ready to exit the remaining holdings. I think with cash in hand, many will change their years and years of frustration into "hey, I have my profit in hand, the rest is relatively zero cost risk.... let it ride or maybe even buy more of the remaining entity".