ERHC Energy Inc (ERHE)

[balance_builder]

A great "new" spreadsheet??? From what I see/read you couldn't be much further off based on the numbers you provided. LOL


I believe your $8 per barrel of OE is pretty accurate in todays climate. This number does, however, look to be a tad low in comparison to what the Chinese paid for Addax's proven AND PROBABLE:


"The Addax deal also revives the debate about Chinese firms overpaying for assets. Sinopec is paying $13.40 per barrel for Addax's proven and probable (2P) reserves, which is fair, Chinese analysts believe, given current oil price levels and the significant production potential of the Addax portfolio. But it's also a lot more expensive than the previous biggest Chinese overseas deal -- CNPC paid $4.18 billion for PetroKazakhstan back in August 2005, which worked out at $7.80/boe of 2P reserves."
http://www.energyintel.com/DocumentDetail.asp?document_id=628068


Granted....Addax had proven to go along with their probable (P-50...which WOULD INCLUDE their JDZ NSAI figures) but do you think SEO is going to settle for much of a lesser amount for barrel of OE? I don't think so.


That said....I would expect SEO will make a great deal for himself and fellow shareholders. Based on ERHC not having proven to go along with the P-50 that Addax had......I think SEO will extract his fair share from any deal he agrees to.

When Addax made their deal with the Chinese in 6/09 oil was selling for close to &70 per barrel and they managed to extract $13.40 per BOE........
http://www.nyse.tv/crude-oil-price-history.htm


Oil is selling today for around $78 per barrel ....so I feel comfortable utilizing $8.50 at a minimum per BOE for any deal SEO would agree to. I also believe the tight holed JDZ round will prove up double of what the initial NSAI report showed as ERHC share (336M BOE P-50).

Too many secrets going on for it to be a big dud as ERHC has tried to protray to their minority shareholders.

1. Tight holed to start with.
2. STP ok with losing their EITI status.
3. Deals made by Chinese and now Total deal being kept secretive.
4. ERHC hiding the team that came in and assisted ERHC with EEZ.
5. New clause added in 9/09 to employee contracts protecting them.


Last weeks move by Total entering the JDZ was a huge deal. Now if Total was to take us out....they would own the same percentage of the JDZ (blocks 1 thru 4) as they own percentage wise in the AKPO. Coincidental???? Maybe....but maybe not. BTW, the Chinese percentage of JDZ blocks 1 thru 4 is within a few percenage points of their ownership of the AKPO. Again, coincidental???


Krom....I am one of the few (apparently) that enjoyed your attempt at current fair value based on the little information we've been given. It is ALWAYS wise to determine where an investment stands in terms of proper valuation. In ERHC's case, that is a very difficult task based on the scant information minority shareholders have been fed.


I think the fat lady is getting easier and easier to hear. I won't be surprised to have her step out of the tunnel....looking and sounding exactly like Gomer Pyle. Surprise...Surprise...Surprise. Only some of us won't be surprised.