ERHC Energy Inc (ERHE)

[mz157]

Exile to buy oil interests in Niger Delta, JDZ and EEZ from Oando

edit: In exchange for 100mm POST-CONSOLIDATED shares... interesting since we just bought alot of shares.


Concurrently with the Acquisition and as a condition precedent to completion
of the Acquisition ("Completion"), Exile intends to, by way of plan of
arrangement (the "Plan of Arrangement") and subject to receipt of all
necessary approvals, change its name and effect a consolidation of its
outstanding Shares on a basis such that the current shareholders of Exile
shall receive in exchange for each 20 Shares currently held: (i) one post-
consolidation Share; and (ii) two share purchase warrants of Exile one of
which will be exercisable for one Share at a price of US$3.00 per Share for
a period of 12 months; and the second of which will be exercisable for one
Share at a price of US$4.00 per Share for a period of 24 months. The
parties have agreed that they may, subject to market conditions, complete a
financing on or prior to Completion pursuant to which purchasers will, in
effect, receive up to 20,000,000 Shares at a price of US$3.00 per Share for
aggregate proceeds of up to US$60 million (the "Financing", and together
with the Acquisition, the Plan of Arrangement and related transactions, the
"Restructuring").