ERHC Energy Inc (ERHE)

[Strategyone]

Don't hyperventilate before you understand the facts. This is a filing to inform the investing world that ERHE would like to issue shares to raise UP TO $50,000,000. Keep in mind there are also limitations. The company only has 950M of registered common shares of which 723,050,444 are already outstanding. There is less than 227M to issue freely and that would leave none for executive and BOD compensation/incentive bonus etc. It does not say the sale will be tomorrow or at tomorrow’s stock price. This is setting the table for after the news release or getting ready for the AIM (IMHO).

Some things to consider: What will the stock price be if ERHE announces partnerships in the two EEZ blocks (and it is not SINOPEC)? What if they receive $50M or $100M in cash with these partnerships? What if Sinopec announces confidence in what they have drilled in the 5 holes of JDZ phase I and they submit a plan to the JDA for Phase II drilling? Where do you really think the price may land if one or all of these scenarios get announced over the next two months or so?

If the stock price goes to $1.50 and the company issues 33M new shares to raise an additional $50M, I probably wouldn’t get very upset over it. If they sell 200M at .25, I will reanalyze my long term position to say the least……