ERHC Energy Inc (ERHE)

[Krombacher]

Hi manuel,

Each value for each year through year 10 represents the money that ERHC gets for that year, but in present value terms as of the year of production. This is done by dividing the cash flow by 1 + the WACC (weighted average cost of capital) raised to the number of years you need to discount back.

For example, in year ten you would get $.83 / (1 + .064)^10

If that doesn't make sense to you, then here's the bottom line, the share price listed at $8.22 is the share price at the start of production. If you want to know what the share price ought to be now, then you discount back that value by say 5 years (assuming that it's 5 years to production), and you get about $6.03 today, *IF* the NSAI numbers are accurate.

Krombacher