ERHC Energy Inc (ERHE)

[Krombacher]

I'm just not getting how they are paying for all of this stuff, Exile, Chad, other places...people/govt.'s just don't give away assets, the world just doesn't work that way.

Either they have made some huge private placement with the remaining issuance of the shelf registration at share prices much higher than now or they are swapping some of their interests in the JDZ or EEZ for these new assets, or both.

How else can they pull this stuff off? More political connections in Chad giving away stuff in exchange for what? ERHC shares? Is that it? People in the Chad govt know their fields will produce oil and want to participate in those profits...sure some royalties and taxes may be paid to the Chad govt. treasury, but individual government officials can't steal from the treasury, so instead they give away the Chad assets to ERHC in exchange for ERHC shares out of the shelf. Is that how it works? Did I nail it?

Conclusion - perhaps instead of receiving cash for its shelf shares, ERHC is trading them in to Chad officials and receiving assets. Win - Win?

Krombacher - the above is pure speculation. The above may be wrong.