ERHC Energy Inc (ERHE)

[Krombacher]

If STP gave the block away without compensating ERHC fairly, then they did so illegally. The contract between ERHC and STP is governed by the London Court. STP can't just unilaterally give the block away over a million dollar tax bill for a 500 million dollar block. The contract would've expired Sept 30th. All they had to do was wait, but they didn't.

ERHC will either contest it in court, which could take years or Shell will want to pay ERHC fair compensation, in my opinion. The international caveat emptor spells that out clearly.

The latter is the most common sense thing if they don't want to tie up block 4 in the courts for years. The fact that they didn't wait until Sept 30th, tells you that there is urgency to get drilling going and not going to court for many years.

The most common sense thing is what must therefore happen per Occam's razor.

And it will happen soon and to the detriment of short sellers, and the investors holding 55% of the shares outstanding are ready, and there's not much the shorts can do about it except lose all their capital on their short position.

Krombacher