ERHE update, RB post
By: Mongo1071
05 Apr 2005, 04:54 PM EDT
Msg. 19463 of 19731
(This msg. is a reply to 19444 by walldog0.)
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At last! A challenger....
1. ERHE will be carried by its JV partners,with no cash outlay to first oil.This is a fairly standard practice in the oil patch.
Okey dokey....what is the 'farily' standard practice when it comes to cash calls, letters of credit. can you post a link? Or how about a filing by any of the companys involved that describe the relationship above. If this is such a great deal for the shareholders why not release it?
It is NOT standard practice ANYWHERE to refinance a note with discounted shares, then pay off that note a short time later with all decisions made by a handpicked BOD without an independent director.
Mongrel blocks the shot and steals the ball.
2. About 5 years,imo...but proven estimated reserves can be determined much sooner than that,and ERHE's share price will rocket with that news.
Mongrel dribbles down the court....
5 years huh? Burn rate of 303,000 shares a day x 365 days times 5 years = about 553 million shares....but lets be generous and assume a three fold increase in share value...wow...thats still 184 million more shares, and let's not talk about the 'employee stock option incentive plan' and farm out percentages and drilling costs and dry wells and interest costs and payback periods...Let's do some simple addition....706+184= 890 million shares.
Mongrel fakes out wallie who is vainly defending the basket....
3.Zero cash outlay for production cost for ERHE, but ERHE will have to assign a percentage of their vast holding to their JV partners....15-20% of their entire holding should cover their expenses.
My goodness gracious. My pappy told me there is no such thing as a free lunch.
Assign a percentage? How much? Now it's Vast holdings when there has not been one single well drilled? Are these the same vast holdings that ERHE did not submit a single high bid for?
So according to you ERHE will make billions with no cash outlay, and that the revenue will begin to flow in 5 years?
And that the partners will pay all of the upfront costs AND Erhe will still skim off their percentage....
Bzzzzzzz.......Mongrel scores again....
