Replies to post #292149 on ERHC Energy Inc (ERHE)

[Gremlin9999]

If you remember after the farm-out with CEPSA closed the share price did go above .11. Granted it has not held that price but you could have added to a position before the CEPSA deal at .04 - .05 and sold some above .11. Almost a triple.

[Krombacher]

The announcement of a partner in Kenya is different from the announcement of a partner in Chad.

In Chad, ERHC has committed millions to the Chadian govt, not as much in Kenya.

Hence, a partner announcement in Chad with carries, which takes ERHC off the hook, put ERHC in a better cash situation right off the bat.

That alone adds value to the company because the liabilities come off the books if someone else is footing the bill.

So yeah, ERHC's valuation with a Chad partner announcement should be higher.

Also if the Chad partner is CEPSA, that means CEPSA has interest in both Kenya and Chad (and behind the scenes maybe even the EEZ or JDZ)...

...that suggests buy out...more so than having a different company in each asset. Having the same company in two or more assets means that company/partner has a greater interest than just the asset, and perhaps its interest is in buying out ERHC altogether.

Krombacher

[Krombacher]

The bottom line is that a Chad partner literally changes the ball game...and should not be discounted as the Kenya partner was...

...because then it becomes more than just about finding oil in Kenya; it becomes getting bought out at best and having ERHC's obligations in Chad govt at worst.

And both best and worst are great.

Krombacher