ERHC Energy Inc (ERHE)

[ssc]

If I were in Cepsa's shoes I'd play hardball and demand ERHC either pays all it owes including its share of all future exploration costs or forfeit its rights. Otherwise I'd be moving on.

But let's take the high road and assume Cepsa kindly gives ERHC a full carry and forgives what is owed for the first well in exchange for another 25% of the block. That would leave ERHC with 10%, half of which, I believe, would have to be given back to Kenya (correct me if I am wrong about that). So 5%, still better than what ERHC is facing now. The big question would be, to pay off the IRS, meet requirements in Chad, plus keep paying PN and SO until commercial oil would be found, how many 100's of millions of new toxic shares would need to be issued. Before anyone scoffs at the 100's of millions, consider the toxic conversion price has already fallen to .003 and ERHC would need to raise millions of dollars. (fyi @ .003, $1,000,000 = 333,333,333 new shares.