Replies to post #44013 on ERHC Energy Inc (ERHE)

[snow]

maestro

I understand fully what your write. What you seem to forget is that there is usually competition for something that appears to be attractive. You seem to imply that there was just one company that was in a position to bid for what was for sale.

[david02835]

Maestro, I'll bet you are exactly right, they didn't have enough to ante-up for the next hand at the poker game. What Snow doesn't seem to understand is that these fees being paid for the rights on unproven resources have nothing to do with the eventual value of those resources or the value of the stock in the companies that are paying for the rights. Proven resources will determine the future value of ERHE's rights. I gave Snow the example of CWPC paying under $1 million for lease rights to explore hundreds of thousands of acres in the oil sands region in Canada. Now that reserves are stating to be proven, the stock is worth billions. This is our hope for the future worth of ERHE.

[Strategyone]

maestro224, you hit the nail on the head with that post.

Overt was never in the game to play, just get the best deal they could. They were within a day or two of giving up their 5% interest to the remaining parties with nothing in return.

Another way of looking at it is: Have you ever purchased a scalped ticket to an event after the event had started? Believe it or not, I have. Many years ago when I was young, fresh out of college, broke and in New York for a company paid business trip, I purchased a ticket to see Paul Simon play at the Garden. I couldn't afford the street value for these tickets before the show. So, I waited and waited and watched the scalpers. Then as the show began and the crowd outside dwindled..... I purchased probably the best seat in a concert I've attended, for less than the origanal face amount. Sure, I missed the opening act???? and the first 5 or 10 minutes, but it was well worth it.

My point is this.... Overt couldn't afford the show. Within the rules, they had the 30 days to come up with their signature bonus money or sell their rights. Since Addax was in for 33.5% interest, they would have gotten 33.5% of Overt's 5% given up shares for nothing had they not purchased the 5% rights. So really, they just purchased the remaining 3.325% (66.5% of 5%) that would have gone to the other parties. And given that they got these rights at the last hour (and paid the $500,000 fine to the JDA for changing the award) they most likely got it for a steal.

All in all, it is encouraging to see Addax pick up these rights (although, I would have loved to see ERHE purchase them instead).

Now let's hear about the drilling schedule!

Strategyone