ERHC Energy Inc (ERHE)

[ERHClongtimer]

Just catching up on the preliminary 14A filing news and resulting discussion. As an ERHC shareholder of 13+ years, I'd like to share my thoughts:

1. It comes as no big surprise to me (nor should it to any shareholder) that ERHC is laying the groundwork for a possible means of new funding. They operate in a cash-intensive industry. Needing funding is academic.

2. A filing does not necessarily mean the proposal will be executed. It could be a contingency plan in lieu of other funding not materializing or taking longer than expected (e.g., EEZ farm-in money). Better to have a plan in place and actionable than to wait until things get dire.

3. I like the idea of a rights offering, if they must issue new shares to raise cash; it's the best possible option management can offer existing shareholders. (It's sad that some current investors would not be able to participate, but better some dilution of ownership than a cash-starved, non-functional company.) I believe SEO will fully subscribe to any rights offering made; that would guarantee a minimum 43% success rate to the offering.

4. Management has demonstrated that they are serious about enhancing shareholder value, adding the Chad and Kenya blocks recently. (I like the little nugget Homeport posted yesterday here.) And it sounds like they are not stopping at those two blocks. This takes money, but as the saying goes, nothing ventured nothing gained.

5. I don't think they would issue all 2.25 billion shares immediately. For round numbers, let's say they double the number of shares outstanding at 10 cents a share. That would raise about 75 million dollars and would provide a nice cushion of cash. And that would leave 1.5 billion shares issuable at a later time at possibly higher share prices.

6. I would not discount more good news around the corner that might make for an opportune time for issuing new shares.

7. I do not like the idea of creating a preferred class of stock.

8. We haven't been told any details about the company's plans yet, so the rational thing to do would be to wait and see what they have in mind.

Certainly appreciate the balanced comments on this topic in the following posts:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78422399
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78425949
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78425991
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78429336
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78429581
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78440771
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78440804

- Longtimer