ERHC Energy Inc (ERHE)

[TOB]

Does this 'catch me up'?

Nope. About 99% wrong about ERHC. I consider Due Diligence to be factual research.

1) a cash problem brewing

Wrong.

Our financial position remains stable. Through December 31, 2011, ERHC had cash, cash equivalents and treasury bills totaling $11.9 million and the Company has virtually no debt. – ERHC CEO Peter Ntephe

2) no updated siesmics that would give other companies confidence to partner with ERHC on the EEZ or Chad assets.

Wrong.

There is new state of the art Seismic for the EEZ and the JDZ, regional basin modelling to find new types of plays, again, do some due diligence. New Seismic are planned for Chad as well. Neither has its PSC finalized so it is too soon for Seismic to be done by ERHC.

3) reports regarding the possibility that our operator in the JDZ may be bailing (not proven yet)

Wrong.

That would be a good thing, if it happened IMO. Sinopec is new to deepwater, and while I think they could develop the JDZ if they decide to go forward, I think it will take somewhat longer and have somewhat less of a chance of success.

4) no alternate listing on another exchange to add liquidity somehow

Also no profitable diamond mines. But an alternative listing is now very likely to succeed for ERHC with the dramatic clearance from the SEC and the DOJ.

We also see that ERHC's affiliates are no problem for an AIM listing.

Fact: Chrome not blocking an AIM listing.

So there are no more steps prior to submitting a listing application. ERHC can do so when they think the time is right.

Of course an IPO into a new market provides additional liquidity. That is indisputable.

5) other investments not going so well

Wrong.

The EEZ and Chad are moving along quite well.

6) drilling results in the JDZ that appear to be a disaster

It is good that ERHC investors have come to terms with the initial exploration results in the JDZ. This is why the ERHE share price is 9 cents. Though I think this is an over-reaction.

The results were certainly not a “disaster” for ERHC. They got valuable data from 5 wells, one of the primary objectives of exploration wells, and all at zero cost to ERHC if the operator has declined to continue.

If the operator has decided to continue, the costs come only from oil production.

The additional data will allow Sinopec, Addax, or another operator to drill with increased confidence now that they understand the geology.

Not only was the JDZ a free roll for ERHC, but ERHC got paid $45 million dollars, which allowed ERHC to continue operations in the EEZ, add the Chad assets, and gain the SEC and DOJ clearance. Et. Etc.

That is far from a "disaster" for ERHC. But I realise that those who don’t understand ERHC’s wisdom in diversifying its assets and think the JDZ is the be all and the end all may not understand this.

Plus the JDZ could still become profitable. There are more than 12 additional targets from existing seismic, and perhaps more from the new seismic and better understanding gained by the drilling. Plus 3 additional unexplored block which ERHC has rights in, with 2 of those in arbitration.

7) more dilution possible if something doesn't change soon

Wrong.

There is no hint of that, just unsubstantiated fears. On the contrary, ERHC has stated they intend to monitize assets, as they did in the JDZ. True Due Diligence would result in that knowledge.

New Seismic in the EEZ and JDZ below!