OK, mea culpa. Discard the word "miracle".
Maybe the $3 million market cap reflects concern about ERHC's ability to survive at all. What is the value of ERHC assets? Cash - virtually zero after paying burn rate plus the uncarried part of CEPSA drilling.
JDZ - 0
EEZ - just sold 1/2 its EEZ holdings for costs plus $2 million so remaining block value $2 million.
Chad - had to give up large part of it for nothing, doesn't have the funding to hold onto what's left without raising more cash.
Kenya - 35% of 1 block which could be worth a lot if 1st well is successful, but no cash to go forward if it isn't.
Adds up to a $3 million market cap and concerns regarding how funds will be raised if CEPSA doesn't come up with a successful well on the first try. What's left of ERHC's assets is only worth a few million and it will need $10 or $20 million to stay in the game in Kenya and Chad. Management has already proven they will dilute existing shareholders into oblivion with toxic debt if necessary. Close to 3 billion shares available to do this. The price is .11, the fear is real.
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