Replies to post #335867 on ERHC Energy Inc (ERHE)

[oldoil]

700,000. OR,

700,000,000. ????

[Krombacher]

Wow! Did this thing just come out? They got the entire court transcript in there too!

And you're right, it does appear that it is a 5% CARRIED INTEREST

Krombacher

[Krombacher]

I have to keep reading but Kosmos's offer of $700k was for reimbursable expenses...and not for the value of the block it might have paid in addition.

Krombacher

[Krombacher]

The deal Kosmos was offering was $700k for reimbursable expenses PLUS this part which involved a negotiated Purchase and Sale Agreement and an interest in the block as part of that agreement:

Kosmos and ERHC will use good faith efforts to negotiate a mechanism in the Purchase and Sale Agreement which provides that prior to voluntary relinquishment to the Government by any party or parties which individually or collectively account for 100% of the interest in the PSC ( excluding any interest held by ANP), such interest( s) will be offered to ERHC for a nominal consideration, subject to the terms of the PSC and limited
to the term of the Exploration Period established in the PSC.

Krombacher

[Krombacher]

DUDE!!!

Look at that section they redacted so we can't see it...look at the title of that redacted section on Adobe page 216 and going through to page 218.

The title says: CONSIDERATION, PAYMENT and CARRY.

So we know there was a percentage carry. We know there was a cash payment. But we didn't REALLY know that there was going to be an entire (redacted) section of with the subtitle of CONSIDERATION.

You know what that means bro? A Consideration in addition to cash and carry?

BRO!!!!!

That means they get an interest in other properties that Total has!

This is one HUMDINGER of a deal.

Krombacher