ERHC Energy Inc (ERHE)

[midtieroil]

I did a little research on Newstar and came up with this. Their lease is in Jackson Co. TX which is District 2 and it is called the McInnis Lease. The McInnis Lease has two fields, Francitas and Ganado Deep. Francitas is not producing. The Ganado Deep field is producing. It looks like the well was worked over some time in May of 2016 because production jumped up to a peak of 700 bbls a month from only 40-50 bbls a month earlier. Looks like Newstar became the operator in September 2016. In the period of Sept-Nov it averaged about 300 bbls per month.

That is about all I can tell you about it. The timing seems strange. If they had done a few of these deals when they had the cash to do so this would have been great. I wish they had. It would have provided a steady income stream. But now, it won't pay any of the 12 million they owe but it might keep the phone from being turned off.

However, they spent 500K on this which means they spent every cent of money they raised from the convertible debentures over the last year on this. Was it worth all that dilution? I don't think so.

This is actually they type of thing that NGAR might invest in and raise enough to drill an additional well or two on the lease. I just wonder if there is a connection to that. Seems like too many conflicts of interest to me. But you never know.