ERHC Energy Inc (ERHE)

[tryoty]

15 cents on a several well carry?

ERHE was over 30 cents when Chad was announced. Then the market grew concerned about how exploration would be funded and it drifted lower. When the company added Kenya the stock rose to 15 cents, but again the concerns over funding caused it to drift lower, helped along by the Rights Offering at 7.5 cents.

Any deal for full carry for "multiple" wells would completely eliminate those concerns and I see no reason that the stock should return to the 30's... where it was before they had those blocks... and certainly higher going into that drilling.

We could see partnerships in Chad, the EEZ, and potentially a reincarnation of JDZ activity, all in addition to Kenya.

The elephant in the room is still the cash on their balance sheet... the lack of it that is. Will this Kenya partner improve that? Only the details of the deal will answer that. Will deals in the other blocks improve the cash balance? We won't know until we see those deals either. So the specter of raising cash is still why ERHE is in the single digits, IMO. When there is cash on hand and carries in their pocket, ERHE will run north like a gazelle.

The day this stock regains to your cost basis isn't "way off" in my opinion.