ERHC Energy Inc (ERHE)

[ssc]

Regarding continued references to ERHC drilling in Chad, the company itself publicly released the following over a year ago:

Chad Operations Update
During the period ended June 30, 2017 the Company after careful consideration decided not to apply for renewal of the Exclusive Exploration Authorization and the Production Sharing Contract over Block BDS 2008 in Chad.

Regarding Phase 2 in Chad Block BDS 2008 which was to begin in June 2017, ERHC had proposed drilling an exploration well but the "proposals have been aborted with ERHC's withdrawal from the Block".

Why would they give up yet another block? More publicly disclosed info from ERHC provides the answer:

As of June 30, 2017, the Company has a working capital deficit and negative cash flows from operating activities. The Company also has significant tax arrears which resulted from a deduction disallowance made by an IRS audit of ERHC’s 2006 return, which audit lasted nearly seven years and has been previously disclosed. There is an outstanding IRS lien of $2,739,607 imposed on ERHC in Harris County, Texas in consequence. Furthermore, the Company is in significant arrears of cash calls relating to the company’s proportionate share of drilling costs (beyond operator-carried expenses) on the Tarach-1 well in Kenya Block 11A. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Unfortunately, this is the real paradigm.