ERHC Energy Inc (ERHE)

[Electick]

Umbra, nothing intended but to clarrify. Your shares are assets to you SEO's shares are (personal) assets to him. SEO could sell one or all of his shares tomorrow and it would not change your status or the company's cash position one red cent. In order for the company to generate cash on the books, they have to sell something, or borrow against something. Balancing transactions are the rule. Your are mistaking SEO and the Company as one in the same entity. The company may have additional shares on a shelf registration, but to issue and sell these becomes dilutive to you and all the other public shares because if they exist, they are still assets on the company books. The hydrocarbon assets are a different thing all together. their value is the subject of some science and alot of speculation. as you move more from one to the other and the speculation leaves, the value goes up. Prospective vs probable vs proven reserves. There is some formulas about these, but even thoses are flavored by the particulars of the company and the geology utilized in the modeling. Lastly is debt which could be achieved via a pledge of the hard assets or large percentages of new equity (to get to the assets in the case of default). Mostly in these types of situations debt is highly secured by far more assets than a prudent man would deem necessary and the default provisions are heavily weighted in favor of the lenders. I dont think we will see any new cash on the books anytime soon.

BTW I am not taking a shot at you in any way, only trying to make sure we are all singing from the same sheet of music.

Cheers