Replies to post #55223 on ERHC Energy Inc (ERHE)

[maestro224]

Here's what to do with 45MM

Pay the bills. 45MM won't even buy you a seat at the table in most oil deals. We might not see a dime in revenue for 4 or 5 years. It takes YEARS to bring a deepwater oil field into production. I think a few more employees are desperately needed how about paying for a few of those? How about not paying expenses with stock and start paying them with cash. I wouldn't be looking to do a whole lot with the money other than surviving until we start getting oil revenues.

[rheddle]

Jhermit - $45 m does not provide too much room to manouvre.

I think that we may see something along the lines of ERHE bargaining with its rights in order to ensure short term revenue.

ERHE might be content with $45 m in the short term until oil is found, because that is the figure that was negotiated when ERHE sold some of its percentages to bring in Sinopec and Addax. The 10Q said something along the lines of [the $45 should see us through the next 12 months]. Of course the $45 will see them through the next 12 months and beyond based on their current expenses, unless we will shortly hear of plans for the $45 m that nobody here has thought of as yet.



ERHE might negotiate some of its rights to future profit oil with the operator in one of its blocks, on the basis that the operator pays ERHE a negotiated percentage of the funds recovered from the cost oil.

Such deals are probably only forthcoming once oil is found, unless ERHE and the parties they are negotiating with are willing to take a silly gamble with no information.

One other possibility relates to the following:

Nigeria in the past has said that it needs refining capacity (I seem to remember seeing a recent announcement about that but am not sure, so if anybody can enlighten me then please do) so perhaps ERHE plans to use the cash towards that end, although $45m would not cover the total cost.

A third possibility is as follows:

We can not discount the possibility of something that may come up with those in block 1, but I am still not convinced of this possibility in view of Chevron's original complaint that they did not want to be involved in any blocks ERHE is involved in. That said, I am coming round to thinking that the discoveries in block 1 are likely to change Chevron's position a great deal vis a vis ERHE compared to that taken a few years ago.

There are so many potential scenarios, but whatever we speculate here, we are unlikely to uncover the precise nature of what is going on. That said, it all still looks good.

Just a couple of thoughts for the day, R

[Stay the Course]

jhermit: Great post.

No real vision and no plan that I can see from ERHE. Maybe Brandhuber the leader could change it.

No wonder so intense speculation on this board.


Stay the Course

[Dadd]

Morning jhermit,

That $45 mil will be used to do alot of different things, as I do not think that Mr. Brandhuber is willing to sit on a low interest rate. The following gives some insight on what they may be doing:

"The Company is currently exploring opportunities in other areas of the energy industry with emphasis in supply and trading."

"The Company also intends to form relationships with other oil and gas companies with technical and financial capabilities to assist the Company in leveraging its interests in the EEZ. The
Company has succeeded in perfecting its interests in the 2001 Agreement with DRSTP or the 2003 Option Agreement and the Company is positioned to obtain sufficient financial and other resources to develop its interests."

"The operations and activities of this company have essentially been focused and limited to (1) continuing efforts to secure its working rights in the JDZ and EEZ; (2) funding the associated contractual obligations related to securing its
rights )primarily legal and technical support); (3) funding a limited office staff consisting of the CEO, the CFO and an administrative manager and associated rental obligations."