Replies to post #312093 on ERHC Energy Inc (ERHE)

[redwing992006]

when is the reverse split date ? 12/15 ? when is drilling supposed to occur ?

[midtieroil]

Many times reverse splits are done in conjunction with a positive event such as getting on a better exchange or at least staying on a good exchange. ERHC has none of that. The only thing ERHC shareholders are getting from this is 100x fewer shares and the probability of even more dilution.

At this point we need to get confirmation of the drilling date from CEPSA. Many companies are delaying or even cancelling planned drilling and we have yet to here from CEPSA about a firm drilling date. I don't believe ERHC's date based on past experience. They will tell us what we want to hear and hide everything else.

We also need to know how needed cash for drilling and admin will be raised. How much cash remains? How much debt remains? How many shares will be issued to pay off debt. How much new debt will be issued? How much was received for the EEZ block? Why is ERHC still hiding that amount from us?

Until the majority of these questions are clearly answered, I don't believe this stock is going anywhere. The shareholder meeting and the 10K due before the end December may shed some light or ERHC may continue to hide everything they can. I guess we'll see.

[emdyal]

The companies that I've had experience with saw a slight increase after the RS and then down after that. But as you say it all depends on what news is released and how the way forward to drilling is clarified !

[Manti]

Keep in mind that one of the MAJOR contributing factors to that price action has ABSOLUTELY NOTHING to do with fundamental changes in the valuation of the company. Let me explain:

A RS requires a ticker symbol change, and an adjustment in the accounts of
ALL shareholders. This DOES NOT happen automatically, even in today's computerized world. The individual brokers all have their own way of implementing these changes, and they cannot be initiated until AFTER the RS is effective.

Most of the time brokerages will immediately allow the SALE of shares, but it takes some time for them to allow for the purchase of those shares. This causes the supply/demand to be skewed while the adjustments are being made.

Some think they will sell on the open and then buy back on the dip and then find that they cannot buy back because their broker hasn't cleared the new ticker for purchases yet. Just a word of caution for those waiting to play that game...