Replies to post #7634 on Addax Petroleum (fka AXC)

[Julius Erving]

I thought that IRS thingy is not a problem?

"This restatement is necessitated by the Internal Revenue Service disallowing certain deductions on ERHC’s 2006 tax return. The disallowance resulted from stock based compensation expense that the Company had recognized as a deductible expense in its 2006 tax return. The disallowance was the outcome of an Internal Revenue Service audit of ERHC’s 2006 return, which audit lasted nearly seven years and has been previously disclosed. As such, the consolidated financial statements for the years ended September 30, 2015 and 2014 are in the process of being restated to properly reflect the tax liabilities that should have been recorded in 2006."

And third party people are responsible for any 'wrongdoing' or errors in the filing, right?

[oil-cowboy]

Great post..... So true

"CEPSA **backed out** of a partnership with Tullow/Swala in Kenya 12B and **joined ERHC Energy** to drill block 11A in Kenya. IMO, CEPSA has been and will continue to accommodate ERHC within reason.

CEPSA didn't just join ERHC to drill 11A, IMO. They have their eye on the big prize. I think if there is a strike in 11A CEPSA will take ERHC out at a nice premium over the value of that strike.

Why wouldn't they? They would get all of ERHC's 11A (-10% Circle, etc) which would be significantly derisked by the discovery... and they get Chad, the JDZ (where there are rumblings) and the huge STP-EEZ block. CEPSA could get a very nice set of properties from just one strike this month. I think *all* shareholders *and* the management of this company are ready to right the final chapter. All in all, this story has been pretty bad and the book will never make the top seller list.

Hey, I might see my oft predicted $14 per share yet. LOL! wink The market cap was $100M with neither oil nor drilling in sight. A discovery will be a game changer, and there will NOT be time to "get in".

If the logs show oil, my guess is CEPSA will make an offer almost immediately, and the share price will reflect that offer, also immediately.

This is an exciting and anxious period for this company. "