I can only mention what my personal assessment is of board opinion as I have gauged it and I think it is fairly consistent with the following:
If the SEC were to find any evidence of wrong doing, they would only be able to fine the company as a result. I am not familiar with the legal process to know if any former directors could go to jail over the matter.
From what I have been able to gather, the JDA ultimately decides what is fair play and it would seem unlikely that they would wish to enter a legal battle over ERHE's rights that might last a considerable time were it to happen. Nigeria want to up their oil output and Sao Tome have an interest in drilling oil asap. 40% versus 60% is not bad for an island of 150,000 people as compared with the continents most populous country.
Much as the Sao Tome AG report appears to have tried to undo ERHC, the PSC's were signed by all relevant parties nonetheless and Sao Tome and Nigeria are each going to get their percentages of what is found. If there were to be any upset, the PSC's would not have been signed in the first place IMO, so now that they have been signed, ERHE's rights in blocks 2, 3 and 4 are secure.
Cheers, R
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