ERHC Energy Inc (ERHE)

[midtieroil]

The question I have now is when will ERHC be in default for not paying their share of the drilling costs? According to my reading of the JOA CEPSA could force ERHC to turn over their share of the block if ERHC is unable to pay. So why would CEPSA "buyout" ERHC when they can just take it. Where will ERHC get the money to pay and will the IRS allow CEPSA to be paid before them. It looks like a discovery or bust to me. Here is the pertinent section.

5. If a Defaulting Party fails to fully remedy all its defaults by the thirtieth (30th) Day of the Default Period, then, without prejudice to any other rights available to each non-defaulting Party to recover its portion of the Total Amount in Default, at any time afterwards until the Defaulting Party has cured its defaults any non-defaulting Party shall have the option, exercisable in its discretion at any time, to require that the Defaulting Party offer to completely withdraw from the JOA and assign all of its Participating Interest.