ERHC Energy Inc (ERHE)

[balance_builder]

Take your pick:

1. ERHC is scooped up in a share swap deal with Addax. This is the logical M & A choice based on existing relationship. Simple and clean.


2. ERHC is scooped up in a share swap deal with AFREN. Since ERHC and Addax are at odds on the Godsonic 9% it places some doubt in my mind that an Addax/ERHC deal is in play. Also, if SEO's stepping down as COB is SEC related, SEO would feel comfortable with his buddy, Lukman, taking control of his holdings and he would still feel the upside of his investment and have even stronger political connections going forward. AFREN's current price is about right IMHO for a 1:1 shareswap.


3. ERHC and 4 other companies throw their assets (or equal assets in the case of larger oil co's) into a basket and spin off into a newly formed public entity. Said newly formed co could have a strong middle east connection. It might even have Petrobra's as one of the partners.....which could be reason for STP mentioning they may sell their oil blocks through direct negotiations instead of public auction. Said team will be THE TEAM for development of the STP EEZ and JDZ (Rickan said it more eloquently). Extremely cabable with unlimited resources for development.....and STP'ers would have the stamp of trust with their brothers, Petrobra's, in the mix. Also, by selling STP EEZ blocks via direct negotiation with Petrobra's in the mix they don't have to worry about BS bids looking for flips and a bunch of non true oil co's in the mix. Hasn't it been interesting how quiet STP has been regarding their blocks since the 3D work was completed? Obviously SEO has developed a relationship with Petrobra's thru Chrome......does it go deeper than a JV for the development of ethanol? There have been several hints that a complicated deal of some fashion is going to take place. This plan seems to best fit that bill.


Those believing they will have to wait for drilling will be proved wrong IMHO based on actual events already taken place and reported via ERHC itself. January to spring timeframe IMHO.