Strass,
I respect your concern and your doubt about ERHE's management.
Before an investor makes a major decision, I would think they would want to analyze the basics of an investment and what changed in order to make this major decision.
I know I invested in ERHE because of the rights to the potential oil in the JDZ followed by the rights to the potential oil in the EEZ. I have risked my invested dollars for about 8 years in this investment to hopefully realize this oil value. Now that ERHE's partners are about to complete their 4th drilled deepwater well, I will be waiting for the results whether they are commercial or not. It is that simple.
If commercial, the share price will likely increase a considerable amount. How much is anyone's guess but think about the fact that ERHE will be able to disclose on their balance sheet the NSAI numbers as soon as they can prove up commercial quantities are down there some where. Whether there is a "buyout" or a "buyin" or a "build this company to production and beyond" plan, will only change how quickly the share price increases and where it settles. If commercial, it should be well above today's price. If ERHE is bought out, the present value of the future potential will be priced into the deal and everyone would be cashed out early (albeit at a lower value than the longer term plan...)
Now let us analyze today's PR and what changed to the basic investment. ERHE PR'd about two years ago that they would be looking at potential investments in other producing wells in the oil industry. They hired their expert who has been researching and analyzing potential opportunities for quite some time (by proof of today's announcement). They really haven't changed the "worth" of ERHE in any sense of the word by the actions taken to-date along this venture. Today's PR was not a notice of a transaction. They may analyze this for 3 months, 6 months, or longer. They may decide to do nothing in the long run. Without the details, I wouldn't know if that is a good decision by management or not.
I am invested in ERHE right now to hear the results of the oil potential in the JDZ (short term). I fully expect to hear these results well in advance of any other ventures the company decides to actually sign on to. This should (IMHO) dramatically change the current value of this investment to then allow me to reanalyze whether I would want to take part of or all of my investment off the table with regards to these other ventures.
I know it is challenging to wait. As I see it, nothing changed today to the underlying potential value of this company. I will wait for the OIL.
Good luck to all in your investment decisions.
