ERHC Energy Inc (ERHE)

[balance_builder]

Our vote for BOD won't matter one iota. The chairman of the Board, SEO, appointed these same BOD's we're voting on (they weren't elected via shareholders). That said, with SEO's 43% ownership of the company he and FAB can now legally vote and elect these same appointed BOD's.

I think it would be difficult for an "appointed BOD" to bring a deal before the shareholders and recommend approval of the deal if they were appointed by the majority shareholder. Somehow that wouldn't sit well with the SEC IMHO. The fix: the shareholders are now going to vote for the same 3 BODs.... and they will be voted in.....but now they are "elected" BODs and in a "fair" test, could bring a deal before shareholders and make a recommendation to vote for the deal.

Bottom line, our votes mean squat....UNLESS.....the 18 month clause doesn't apply to the majority of the minority (it is unclear the way it is written).

Bottome Line IMHO---This vote for BOD seems to fit in wth the other screaming market indicators thats something is in the hopper and we ARE going to learn about it soon. Here is the host of events we've seen that I believe indicate something significant is coming our way:



1. Lawsuits mysteriously are settled.
2. SEO steps down as COB.
3. SEO's attoney has subpeona dismissed.
4. SEO indicates he working to enhance his holdings.
5. First shareholder meeting in years is scheduled.
6. SEO moves shares to different accounts.
7. SEO refiles on share ownership.
8. Shareholders to vote on electing same BOD's.
9. Whiteboard information creates internal panic.


No, the recent rise in SP has nuttin to do with a drillship (or two) that might be leased, IMHO. A deal of some fashion is headed in our direction and it appears its almost here. If the deal involves ALL of ERHC, nothing we do will matter as our votes are meaningless with SEO's ownership being 43%. In fact, with the number of votes that won't be made (not necessarily at the sh'er meeting), SEO probably doesn't even need FAB's votes to make the majority.....his alone will do the job. We have to live with that fact....and recall that we knew this the day we bought our first shares.

The JDZ will likely be developed by a consortium of oil co's and I hardly think they will allow lil ole ERHC to be a part of that consortium.....meaning SEO will get close to the price he has been asking. I would also think he'd try to retain upside so that limits the possibilities when you look at the current JDZ players.

That doesn't, however, mean that XOM couldn't come back in and sweep up ERHC's JDZ percentages and play a mighty role in the JDZ. Maybe their (XOM) B1 sale at cost to Addax was made as part of the deal for regaining ERHC's percentages BEFORE BEFORE BEFORE full carry deals were made with Addax. Afterall, XOM wouldn't need Addax to carry them. This theory would also make sense of why Addax and ERHC can't come to terms on the Godsonic 9%. XOM wants the percentage and Addax says....no, that's ours. A fair value cash deal made by XOM and we're gone? XOM/Addax/Sinopec/Chevron/Anadarko form the consortium going forward and eventually Addax is removed from the lineup after the oil is discovered (another very good reason for wanting upside).

It is noteworthy that when ERHC put to print a hard drill schedule with the Aban Abraham contract, the shareprice rose 1 cent. Granted, the drilling was a year away......but now some are actually believing the sp rose 150% because RUMOR of a drillship of opportunity surfaces? I don't think so.....

http://www.erhc.com/en/rel/?8

http://finance.yahoo.com/q/hp?s=ERHE.OB&a=11&b=27&c=2001&d=3&e=5&f=2008&g=d&z=66&y=264


Based on CVX's early reports....before the lid was shut down tightly....there's oil present and the big boys WILL want a piece. Handily, we own the second largest piece.....and maybe the only piece thats for sale. Now...before anything can occur, the playground must be swept and cleaned (lawsuits and filings).