Replies to post #302201 on ERHC Energy Inc (ERHE)

[Manti]

Meaningless numbers. The only thing that has meaning is the percentage ownership of the pie (assuming there is a pie worth having).

The key is "How marketable is ERHC at this point in time?", and "what value can be reasonably placed on it and its assets?".

Anyone with investment capital will want all they can get for themselves. They don't do it for others.

The biggest problem we have now is the destruction of the perceived value of the company. It would have been much easier to get 10 million dollars when the market valued it at 100 million rather than 1 million.

My guess is that any real investor will want a fairly large percentage, let's say 50%. To get that, the OS would have to double from wherever it ends up with the other debt obligations paid off or accounted for.

If one assumes that the 3 billion AS is sufficient to neutralize the current debt obligations, then and additional 3 billion would need to be authorized and issued to cover the new money.

Former shareholders would then have about 13% of the company (800m/6b). Those buying now and through the debt conversions would have 37% (50% minus 13%) of the company.

Using your pre-split sp of .25 would have been a market cap of $200M with 800M OS. To fully recover that, with only having 13% of the company, the market cap would have to reach $1.5 billion. The corresponding share price is irrelevant, as it depends on the OS.

This is probably the best case scenario unless a farm-in can be consummated.

IF a 500:1 RS were to be done under these circumstances, the OS would be 12 million shares. If they actually hit oil, they could uplist to a real exchange, and the required $1.5B market cap would be $125/share.

Let's face it: those who invested knew it was speculative, and there was a chance of losing it all. But just like PN chose to think the sp would increase in anticipation of drilling, we chose to think there would be oil in the JDZ and/or EEZ and placed our bets accordingly. So far, we've lost.

Now, this doesn't excuse PN for piss poor management decisions, which have greatly reduced the chances of successfully pulling this off.....