ERHC Energy Inc (ERHE)

[Krombacher]

Badog,

Regarding the Shell and ERHC deal, when ANP-STP reported that 85% of Block 4 went to Shell and 15% to ANP-STP, it was after ERHC had already issued an international caveat emptor stating that Block 4 was theirs. Shell wouldn’t ignore that. Neither Shell nor ERHC have reported anything to news outlets or on their websites about deals involving Block 4. The only public statement came from ANP-STP, which may have done so for political reasons, possibly to show constituents that progress was being made in the EEZ. The deal between Shell and ERHC is clearly not ready to be announced yet, likely because it's still in progress and waiting for final signatures.

1. It’s possible that São Tomé and Príncipe may have jumped the gun in reporting the deal. They could have been eager to show some accomplishment in the EEZ, but if the deal were fully finalized, we would have seen an official announcement from Shell by now. The absence of that is telling.


2. There are likely contingency clauses in the agreement, which makes sense when you consider the complexity of oil deals. For instance, a clause could say, “If ERHC secures properties in XYZ countries, Shell will pay ERHC ABC or buy them out at $X per share, but if ERHC only secures X & Y and fails in Z, then the price will be lower.” These types of contingencies explain why the deal may not yet be finalized, and why Shell hasn’t yet publicized the acquisition of Block 4 on their site. These factors need to be resolved before everything is set in stone.



Now, regarding short sellers—if they’re naked short selling, shares can be printed to satisfy demand, effectively suppressing the share price. This allows them to avoid margin calls and a short squeeze by artificially inflating the supply of shares. At the same time, demand for the stock is low because it’s primarily restricted to Canadian investors, given its caveat emptor status in the U.S. Few investors are willing to delve into 400-page legal documents or conduct deep due diligence on a company that cannot report due to a court-ordered gag order. As a result, the current share price is almost entirely fabricated by short sellers.

I find it ironic that you accuse me of “dot connecting” and fabricating my own narrative, while at the same time relying heavily on a share price that is likely being manipulated by short sellers. A fabricated share price is not an indicator of truth, and placing such emphasis on it while ignoring the broader context is misleading.

Krombacher