ERHC Energy Inc (ERHE)

[oilman57]

Valuation Model

Considering only the preferential rights, when figured as a percentage for the 9 blocks, ERHE has rights to 13.9% of the overall total.
Geco has estimated 14.4b barrels of reserves in these 9 blocks only. These estimates are only considering 17 of the most likely prospects out of 56 tested in the 9 blocks. Therefore if the 14.4b is only based on 17 of the 56 we can assume that there is potentially more than the 14.4b.
If the overall total interest (only counting the preferential rights now) for ERHE is 13.9% that implies a total reserve capacity for us of 14.4Bx.139= 2.002B.
The valuation of unproved oil assets is $3/barrel, which gives an asset value of just over $6B, which with just over 710M shares outstanding gives a share value of almost $8 per share. Now if OPERATORSHIPS are awarded its KATIE BAR THE DOOR. If your not in before awards you'll be chasing.

From RB