Possible Scenario:
First, I preface this post with two statements. One, I am not privy to any inside information as it relates to ERHE. Two, all of the following is "in my humble opinion".
The following may unfold:
Offor sells approximately 200 to 300 million of his shares for anywhere from $.80 to $6 (let's say $2 per share). He also gives up his voting interests for his/Chromes remaining registered shares to the buying entity/entities. Within the agreement, Offor probably is required to hold his remaining registered shares for a set time period which I would guess at not less than two years (probably closer to five or a step out to five years). There may even be a clause that unravels this agreement if current rights are removed or significant altered from any future negotiations etc.
What does this result in?
First, Offor gets a lot of US dollars that supposedly he critically needs for the upcoming necessary political bribing (which is nothing to belittle; it is what it is in Nigeria).
Second, Offor is forced to hold a significant amount of non-voting shares to maintain his political influence in the region. This would be a huge benefit for the remaining shareholders (and Walldog's ego - just kidding) and is probably recognized by the purchasing controlling entity. Offor would have a vested interest in making sure the JDZ rights are not materially discriminated against from Nigerian political interest that Offor maintains in the future (before and after the election). If Offor's political ties diminish due to the outcome of the election, the controlling entity can utilize other influences it may exude on its own and Offor's remaining vested interest will likely maintain more value than it would have otherwise, if Offor kept his entire holdings as is.
Third, by an external, fully functioning oil company currently trading on any world stock exchange getting controlling interest in ERHE's rights, we would be rid immediately of the "Nigerian Scam" stigma. The current short term share price would get an immediate boost including Offor's remain shares.
Forth, any external, fully functioning oil company may be in a better position to soften the outcome of ERHE's STP EEZ remaining negotiated rights. I feel STP still has a bad taste in its mouth regarding the JDZ outcome and how much local political influence Offor/ERHE held. I feel it would be looked at entirely different from STP's perspective if the rights were acquired by a non-Nigerian oil company.
Fifth, I still believe Offor has legally moved many millions of shares to an offshore entity above the current 43% interest owned that he can continue to profit from and utilize for cash flow in the future.
Sixth, Offor could concentrate his future oil rights endeavors with the "Starcrest" entity which he has already started and he can get out from under the SEC watch and or conflict of interest clauses.
If a deal is in the makings I would expect and hope it would be structured similar to the above thoughts. I also feel that this would be the only way for a successful change of control.
Thoughts welcomed,
Strategyone
