ERHC Energy Inc (ERHE)

[Krombacher]

Remember when we talked about CTR (Confidentiality Treatment Request)?

I was guessing that the reason ERHC could withhold seemingly material information with out upsetting the SEC is if it had gotten a CTR on the information from the SEC, including a request to treat the application for the CTR confidentially as well.

If I recall, the minute something covered in the CTR becomes public knowledge, then the entire CTR is lifted, and now the SEC may force ERHC to reveal the NSAI, drill analysis, AIM, everything. (but I could be wrong, I am not a lawyer).

However, all of that information would be totally moot, if turns out that ERHC now has to pay SNP upwards of $60 million for Phase 1 exploration and drilling costs as a result of losing its free carry as a result of those documents becoming public.

ERHC does not have this money, and if Ledbetter did not get confidentiality agreements from Envoy and Consus Group, then ERHC might not have legal recourse against those entities. (again I am not a lawyer).

Besides, even if ERHC did sue, I doubt that Envoy (whose only asset seems to be a strip mall in Virginia) has the wherewithall to pay the $60 million plus future drilling and production costs.

Not to mention that litigation takes for ever.

This could become a really BIG BIG problem for ERHC.

Well, everyone wanted the drill data, NSAI, etc., and if there was a CTR in place and it is lifted, you will likely get it...but be careful what you wish for.

I have a feeling we're screwed here.

Krombacher - the above is all hypotheticals and may be completely wrong. We need a PR from the company RIGHT NOW.