Proven undeveloped reserves have value, and that value fluctuates with oil prices to some extent. In 2001 the sale of AKPO assets put that value at $7 per barrel... in mile deep water... with all development costs still required to bring it to the surface.
ERHC's Kenya block is on shore. Cost to develop will be a tiny fraction of deep water costs... and there is a pipeline that's going to be built that will reduce these costs even further.
IMO, proven undeveloped oil in Kenya has significantly more value than proven undeveloped oil in water a mile deep.
Using a conservative number of $12 per barrel, a fully successful well at Tarach-1 that proves the estimated 66M barrels will net ERHC 23M barrels. At $12 per barrel ERHC should be worth $276M, or $5.52 if you assume the shares out go up to 50M.
Now think about what happens when this well derisks the block and the other 662M barrels estimated become more likely.
Think $15 to $35 per share.
But not with this management. They have shown that they will wipe shareholders out if that solution is "quick and attractive".
I have absolutely zero respect for Peter Ntephe and Sylvan Odobulu. They are self serving pigs that wiped out shareholders because that was the easiest course.
They don't deserve entry level labor jobs given their absence of ethical behavior.
People maintain anonymity for a reason and it is rarely noble.
