ERHC Energy Inc (ERHE)

[balance_builder]

A direction that I believe warrants serious discussion is layed out below:

First we have SEO stepping down as ERHC's COB and making public comments to the effect that:

1. "ABUJA, Nigeria, Aug. 29 /CNW/ - Sir Emeka Offor, the former Nigerian chairman of Houston-based ERHC Energy has said that he has no plans to divest his interest in ERHC. Indeed, he is currently consulting on enhancement of that holding."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22479099

2. "This requires that I decline to continue as Chairman and director of ERHC. I am confident that I have taken ERHC to where it can stand on its own."
http://news.corporate.findlaw.com/prnewswire/20070820/20aug20071240.html

It is very noteworthy (IMHO) that these comments followed a rather hasty settlement of both of ERHC's legal issues.

Back on 12/23/06 Oilphant posted up, in part, this comment:

"Merry CXOMAS all! 5 players 5 presents"
http://investorshub.advfn.com/boards/read_msg.asp?message_id=15778023

The oilphant comment was recently put into light (perhaps) via Richkan on 8-29-07 when he suggested:

"Observation regarding the PR Newswire release:

Cryptology is not my strong suit but I posit that the use of the word enhancement in the second sentence indicates that SEO plans to add value to ERHC through a consortium of companies forming a new publicly held entity whereby ERHC becomes an integral part at a valuation somewhere below, but not far, Oilphant's <$6/share post, and in the process no longer will be ERHE.OB.

As to the consortium members, I'll add that two years ago in a private meeting Addax said they'd love to buy ERHC (no attribution will be provided). Further, I'd not be surprised to see the lamb lie with the lion. If I'm anywhere near right, this new entity would be a dominant force in the JDZ and Gulf of Guinea, as well as providing and offering the legitimate currency for major public investors. It would mark the beginning for extraordinary pps appreciation, even following the 20+ times "enhancement" soon to be enjoyed by current ERHE holders."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22454081

This post went over extremely well by most ERHC IHUB posters. I became particularly interested in one of the replies where Jim Long posted:

"Maybe SEO and others are discussing a "joint venture" rather than buyin/out. The rewards can be huge and if the agreement is properly agreed then the losses can be minimized. See the following link for a pretty good idea of the various ways ERHE could SHINE!

http://sbinfocanada.about.com/od/management/a/jointventure.htm

This method allows SEO to "enhance" while "retaining power". It would be a great boon for his and our wealth."
http://investorshub.advfn.com/boards/replies.asp?msg=22474423

Why did this post capture my attention? Because ERHC has remained without a CEO/CFO for 15 months. Because Oilphant had previously posted the 5 players, 5 presents post. Because ERHC expanded their office space for no obvious reason. Because ERHC continues to speak of new oil producing interests. Because Oilphant inquired about what a minnow could do with $150 million and later posts they could buy producing oil properties in the shallow end of the pond (read: Niger Delta). Because ERHC has mentioned ERHC is going to grow as if they already know what is going to happen. Because ERHC hired on Duane Morris. Because it strongly appears the JDZ is going to be explored via one entity led by Jeffrey Shrull. Because Beemerchick suggested Aramco was to be involved as this is where and why Ledbetter came from and possibly represents.

Lets take a peek at what a Joint Venture could do for a conglomerate of co's:

"Selection of a good local partner is the key to the success of any joint venture. Personal interviews with a prospective joint venture partner should be supplemented with proper due diligence. Once a partner is selected generally a memorandum of understanding or a letter of intent is signed by the parties highlighting the basis of the future joint venture agreement."
http://taxpolicy.ird.govt.nz/publications/files/html/partnerships/c4.html

Hmmmm...didn't the rumor of Baker & McKenzie doing DD on ERHC leak out in the recent months???

"The term "joint venture" generally refers to an arrangement that is something less than a partnership.[13] For example, in a contractual joint venture the parties usually carry on separate businesses, although the parties will collaborate on a specific joint-venture activity. Accordingly, the parties will have a different set of rights and obligations as part of the joint-venture activity than would be the case if the parties were in partnership. Common law has attempted to differentiate when a joint venture is not a partnership.[14] The typical features of a joint venture are:


Each party can generally assign its rights in the joint venture without the need for the consent of the other parties.

A party can dispose of its share of the joint venture in any way it chooses.

A party is not responsible for the acts or liabilities of the other parties.

A party is not prevented from competing with the other business participants in business operations outside the joint venture.

Each party retains its own autonomy and control.

Each party to the joint venture may contribute the use of its assets in the joint venture activities but will retain ownership of them.

Each party may be entitled to a share of the output from a joint venture"
http://taxpolicy.ird.govt.nz/publications/files/html/partnerships/c4.html

Ok....back to help glue this together. Anybody find it odd that one exploration team is going to be responsible for JDZ wide exploration? I sure do. However, if a new public entity was formed via JV....it wouldn't be odd at all. Cheveron did a 50/50 JV with Sasol to form "Chevron Sasol Holding" in africa for the Gas to Liquids growing business.

Who could be included? Oily suggested 5 co's. I would think they would be made up of 5 of these suggested co's:

Addax
Cheveron
ERHC
Equator Exploration
Anadarko
Sinopec
Aramco
Chrome

Would the new co take a controlling interest (and place in KEY management personnel (read: CEO/CFO) of ERHC and possibily even EEL or perhaps a larger entity pre-JV? Would a co like Aramco throw in, as their share, say $150 million for the purpose of buying additional properties since they currently have no ownership of any JDZ interests? Very plausible IMHO. Sure would "enhance SEO's holdings" and sure would make one feel secure enough to step down from the tighly grasped control of previous leadership as it would most definately be able to "stand on it's own".

Oilphant has posted to the effect on several occassions that:

"The sp will burn bright when ERHC and oil are clean.
The Oil, ERHC and SEO are all there now, there is only one constant and that's the Oil, when Oil is brought up from the blocks, ERHC will not be ERHC, SEO will not have ERHC, but the OIL will still be OIL. And this is coming soon!"

ERHC remains (under different control) ERHC until after oil is proven and then will be bought out entirely by same entity prior to production of first oil?

Next step will be.....as indicated in my last post on this board IMHO. That will be the first sign of being clean IMHO.

Many thanks to all the posters on this board for their imput.