ERHC Energy Inc (ERHE)

[Julius Erving]

A strange conclusion:

"Simple to understand why price remains near zero and no links can be provided."

Not that simple at all (only if you accept that EMH does not work here).

The Krommafier already went to great length to explain to the shorters why we can say that ERHC is undervalued:

My "gut check" is to look at the actual market cap of the company, which is currently $1.5 million.

Now $1.5 million may sound like a lot of money to the average Joe Schmoe...but it really isn't.

Even proponents of EMH would claim that a shell company with no assets in it but is publicly traded would alone be worth half a million dollars.

Some might say that the inky dinky well in Texas is worth half a million dollars...others might disagree.

Some might say that the lawsuit spanning several continents, three courts and arbitration hearings, and several layers from trial to appeals...had to have cost at least half a million.

Some might argue that Auctus was paid half a million...others might say that the settlement was not paid.

Some might argue that the IRS lien was a couple million to get extinguished all said...others might argue that.

But my point is that that $1.5 million isn't much and relatively easy to find that level of value in the ERHC even WITHOUT the EEZ or JDZ properties.

But what happens when you try to value something like an EEZ carry of 5%? 5% of all oil and hydrocarbons found in the highly prospective block 4 of the EEZ is certainly worth more than $1.5 million.

Even if you argue that the soon to be drilled EEZ may have no oil or commercial hydrocarbons at all...and that drilling could all be duds....nevertheless...just the option to drill in the EEZ has value that easily exceeds $1.5 million.

And then there's Kosmos's valuation of Block 4 in the neighborhood of $500 million in total.

There is the "upside percentage" in Block 11 already sold to Kosmos. There's the percentages in two other block in the EEZ which must be worth something.

So even the most bare bones assessment of this company...keeps coming back to MORE THAN $1.5 million.

And that's even before we all go "ga ga" over Total's contract...we think $100 million of consideration paid...but even if it is NOT that amount...it most clearly MUST be greater than $700k, which was Kosmos's deal.

So I have to conclude over and over again, that Mr. Market is simply wrong. A $1.5 million valuation is way too low even if I bare bones...cut everything down to the bone...or even the marrow...it is too low.

Dry cleaners tend to value higher than this. $1.5 million is a PITTANCE!

Conclusion is: shorters are obligated to wait for news. And that causes huge unrest, understandably.