Below sent to Dan Keeney at ERHC on 27Nov09. If you are of a similar mind, would suggest you similarly contact ERHC.
Subject: ERHC is not an oil and gas company by any normal use of these words in the US
Dan: I read the 24Nov09 press release on the ERHC website that “ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in the highly prospective Gulf of Guinea and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors and employees, and to sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production” [Underlining is mine]
ERHC DOES NOT HAVE any exploration or production people, has no track record of these activities. It DOES have a successful track record of getting hold of and keeping the rights it has. It is not as if ERHC can even say it is a non operating oil company. ERHC is a holding company for some excellent prospective assets in the JDZ and EEZ but to say more than that is deceptive. The practical honest solution is instead to emphasize these strengths. Anyone working in a real oil and gas company quickly will confirm that your description is misleading at best and outright lies if viewed carefully against reality.
You can claim to have a caretaker management in place to maintain these assets but I would not go too far in touting ERHC’s management ability as that is fairly nonexistent by oil company standards.
This perspective comes from working in a real oil and gas company that owns and operates many such assets, in planning deepwater field developments of the kind now being drilled, and is reinforced by talking to others similarly placed. More important is credibility with serious oil industry analysts who quickly see through your words for what ERHC really is. You cannot BS them, in fact trying this kind of BS has a negative effect right away on serious people in the oil and gas community!
I would however commend ERHC in the last 2-3 years in taking some trouble to communicate with its shareholders. Now if you can get past the Nigerian promoter perception that your colleagues convey and recognize honestly what a real oil company means . . . . Think for a minute of where in the current management there is anyone to lead the company as an oil company and really has that as his raison d’etre. Compare with other true operating oil companies in West Africa.
In my mind ERHC management is a joke but the assets are potentially outstanding, justifying holding on to some stock. It is an unfortunate combination! FYI, I am a shareholder in ERHC with xxx,000 shares and take seriously what is said on your website and communicated by your company management.
I do respect what you have been achieving, hate to see a US professional being swayed by Nigerian promotion and ask for more reality in ERHC communications.
Best regards
[identity and number of shares withheld in this public forum]
AI
