midtieroil, you use some interesting words in your summation of current events. From the pessimism that you continuously speak about this investment, I can’t for the life of me figure out why you are still invested. But, to each his own.
You state “everything is still years away” and “zero measurable progress”. If you truly felt this way, please tell me why you would not sell every share you own today and put it in the bank at .05% interest rate with an FDIC backing to protect your downside? Then come back YEARS from now to reinvest your increased fortune when the ERHE outlook looks more to your liking? You could even evaluate the then current management to see if they were taking the company in the same direction you were hoping for. This seems like a prudent step if you truly believe what you speak about here.
On the flip side, I see measurable progress on multiple fronts that ERHE has going on. Any one of the ERHE projects (Chad, EEZ, JDZ, Block 1 of the JDZ even though not ERHE, IMO state, AIM listing, any one of the three other Nigerian plays that were discussed in today’s investor update), could have an announcement anytime to dramatically change the short term outlook of ERHE. Yes, they will not magically discover commercial oil overnight but any positive step could propel this investment forward rapidly. It would seem to me that the update released today increases the odds of something positive happening because of the diversification ERHE now has in play.
Let’s take a brief moment to think about short term possibilities and what effect it would have on ERHE’s share price:
Chad – What do you suppose would happen if ERHE announced in the next three months or so, a new consortium partner with a successful track record of drilling for oil in the Chadian region? Positive or negative?
EEZ – What do you suppose would happen if EHRE announced in the next three months or so, a new partner such as Petrobras to explore pre-salt activities? Positive or negative?
Block 1 of the JDZ – we know Total will be drilling in the next 3 to 6 months. What happens if Total announces a discovery of oil anything more that 150 feet of net pay? Positive or negative?
JDZ – albeit a little longer out than 3 months, what happens if the scenario in Block 1 plays out similar to above and Sinopec declares Phase II exploration will commence over the next two year period. What will be the short term effect on the share price, positive or negative?
IMO state – It sounds like the next steps on this front is the awarding of specific marginal fields. Kind of like Chad. ERHE has nothing as of now, but they may end up with additional specific block or field awards in the next 3 to 6 months or so. Will this be positive or negative?
AIM listing – this is currently in a ‘wait’ state. If any other positive step takes place in any of the previously mentioned projects, the share price will likely raise substantially. What would happen if ERHE announced a listing on the AIM shortly after another positive announcement (with price appreciation)? Just the fact of increasing the potential buyers of ERHE shares (from the new listing), will put upward pressure on the share price. This should have a compounding effect on the increase if strategically timed with another major announcement.
None of these examples above sound to me like the ‘same tired story’ or ‘zero measurable progress’. I see it as just the opposite. It may still take years before ERHE has an income stream from commercial oil but we all know the share price appreciation will precede that by years also.
AI
