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Congrats on the win with ERHE. A tidy

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Lugheads1957   Friday, 02/12/10 11:51:58 AM
Re: robjer post# 61
Post # of 95 
Congrats on the win with ERHE. A tidy little profit is always a good thing.

The cash for ERHE is very misleading when taken as you probably have. The EEZ is currently (or so we hear) allowing ERHE to pick its 2 FULL blocks. We obviously cannot pay the hundreds of millions and billions of $$ to actually explore the blocks ourselves, so we will be partnering with someone(s) to do the drilling, much like we did in the JDZ. And, like the JDZ, I would expect us to get a very nice chunk of change (over $40 mil in the JDZ I think) to go along with the partnership(s). So cash, while it is not strong on our books right now, is probably not a real issue going forward near term, unless the company does something real stupid with their acquision plans.

About those plans - I expect any acquision to be a small amount of money, and designed more to create a small revenue stream to help boost us to a new exchange. All that is very fuzzy right now, and many feel it - acquisition talk - is no more than posturing to appear poised for a longer company existence to anyone currently looking to swallow us.

Ultimately, I think it is possible, if not likely, that we get our JDZ and EEZ assets bought, though the company could remain in some other form as a player in the African area as Offor has huge political and local connections there, and probably would be one of the biggest players. I do think he would prefer to play without someone like an SEC or other governing body looking over his shoulder. He could then freely do things the "Nigerian" way and be bigger and stronger sooner.

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