ERHC Energy Inc (ERHE)

[kaydee]

I suspect ADX has cashflow problems - inspite of 500 million LOC - and with the oil price south of 50.

Gandur has many drilling areas to fund, is focused heavily on northern Iraq and needs to chose wisely where to spend his funds. The line of credit ADX has likely has conditions attached to it. It may not allow much of it to be used in the JDZ. In fact the banks who provide the LOC may themselves be in trouble and have funding problems.

For ADX it is crunch time and time to re-asses.

Many others in Gandurs position are re-thinking how to deploy scarce capital and all have, or are, re-evaluating their plans. The big question for exploration companies is to figure out where the prices for oil and metals are going to be 1, 2, 3, etc years from now.

If the worldwide economic malaise drags into a 5 year one, or worse into a Japanese one, then being frugal now with funding of capital projects is of the essence for any CEO.

So lets keep this in perspective before everyone jumps up and down screaming like rumpelstilskin. Things will sort themselves out, but not in the short run. We WILL have to wait longer, an unpleasant truth, but a fact.

Please, everyone, stop the ranting and raving. These are serious times.