ERHC Energy Inc (ERHE)

[farrell90]

ERHE has two assets to fund the AIM subsidiary: its current cash about 33 million dollars or its holdings in the JDZ. Mr Bovell stated he wishes to "incorporate the new company in an advantageous tax environment". Which I infer means the new AIM subsidiary will produce substantial income.

I agree with Walldog we need the cash to fund operations and any unforseen liabilities. The 33 million would purchase a relatively modest income producing asset.

What makes more sense to me is Mr Bovell is laying the ground work for some type of asset swap. He state as a goal to "diversify and use the companies expertise to tap into other oppurtunities". I believe ERHE will receive an oil or gas producing property for all or part of one of its JDZ blocks. The swap of assets could be as complex as the formation of a global JDZ consortium or new company which may include new partners such as XOM or PBR. It could be something as simple as trading assets with one of the smaller companies operating in the GOG. The final outcome I believe is we will own an oil producing asset.

I do not believe an asset swap of a portion of our JDZ assets is precluded by Mr Bovell in his question and answer statement

Mr Bovell was hired by the company as a consultant in 2007. During this time he has been formulating a deal for the company. We have only received a few hints as to what is planned. Only time will tell for sure. Good luck Farrell