ERHC Energy Inc (ERHE)

[Krombacher]

It’s clear that there’s frustration regarding the lack of communication from ERHC management, but it’s important to recognize that pressuring management during this sensitive time could actually play into the hands of short sellers. The shareholders understand that these negotiations—whether regarding a potential merger with Starcrest, additional oil blocks, or a buyout offer—are strategically delicate and could be hindered by premature disclosure.

ERHC has been transparent about the gag order affecting ERHC’s SEC filings. The publicly available SEC documentation acknowledges this gag order. This isn’t speculation—it’s documented. The SEC itself recognized the existence of the gag order and directed its own adjudicator to address it. While ERHC cannot disclose the specifics of the ongoing legal matters due to this order, it’s something that has been recognized within the legal framework and has restrained ERHC from making certain filings. The gag order isn’t some “fiction” being peddled, but a real, documented restriction that the company is operating under (unless it's been lifted since then)

Regarding valuations, let’s not forget the 20 cents per share estimate for Block 4 and the 80 cents per share estimate for the JDZ, provided by Oranto and Kosmos. That already set a baseline for valuation, but with potential catalysts like Starcrest, additional oil blocks, and Shell’s interest, it’s entirely plausible that the value could rise into the dollars, especially with the backstop mechanisms in play.

The short positions are significant, and it’s in their interest to distract management by demanding information that’s either being strategically managed or otherwise irrelevant at this stage. What SSC is advocating could potentially slow down management's progress and work against the shareholders' best interests.

We prefer management to focus on bringing substantial news at the right moment, with the backstop in place, rather than trying to satisfy the shorts by forcing premature disclosure. By staying patient, we allow management the flexibility to ensure that when an announcement is made, it maximizes the value for all shareholders.

Let’s not do the shorts’ dirty work for them.

Krombacher