ERHC Energy Inc (ERHE)

[farrell90]

Text from the White Board Presention [my swag]
Greetings! I was sent from the Brenner Group to answer questions which have arisen after our earlier presentations to the partners of JDZ blocks 2 and 4: Sinopec Addax and ERHC.
The partners have previously agreed to obtain a drill ship and embark in a cooperative manner to explore the JDZ blocks. Beginning in the fourth quarter 2008, Aban Abraham is scheduled to drill 5 or more wells in the blocks.
The Brenner Group was approached by the partners to recommend a way to further merge the partners interests. A merger has the potential to increase efficiencies,improve cooperation and coordinate exploration of the blocks. If achieved these goals will save capital and result in earlier production which will improve the profits and share price of all the companies.
Our recommendation is to form a new company. The partners will combine their interest in the blocks. Sinopec and Addax will have the option of funding their contributions with additional capital investment or additional portfolio exchanges of nearby properties.
ERHC will be purchased with cash and warrants. ERHC shareholders will have the option to invest by purchasing shares in the new privately held company.
The new company will be large enough to attract funding and investment from stock exchanges in New York, London, and Toronto.
The new company will seek to buy minor owners of the blocks. It will also be able to make additional portfolio acquisitions
The new entity will be listed on the TSX which will simplify accounting and legal requirements.
Approximately one year from production we will take the new company public. If the drilling produces the reserves suggested by the siesmic studies we anticipate an initial IPO price of $8 a share as outlined on the graph in the middle of the presentation. The IPO will give ERHE shareholders an oppurtunity to redeem some of their warrants. We expect the price per share may become depressed until production is stable. As the graph suggests the price per share will increase as production increases. This will provide another oppurtunity for ERHC warrants to be redeemed.
In summary the Brenner Group has helped over 600 companies achieve their financial goals by assisting mergers and providing an assortment of financial services. We feel confident we can provide the leadership to see this project to fruition. Enjoy ! I look forward to seeing other interpretations. Good luck Farrell