Replies to post #101216 on ERHC Energy Inc (ERHE)

[Doug Hauser]

Rubiyat wow I like erhe too for a long time but the price behavior in last few months has me out sniffin in greener pastures.

Lest I forget:

Wake! For the Sun, who scatter'd into flight
The Stars before him from the Field of Night,
Drives Night along with them from Heav'n, and strikes
The Sultan's Turret with a Shaft of Light.

[walldog0]

What a great post by S.Freed....

and usually I'm not particularly thrilled with his opinions, by that post is right on,...imo.

[Opus X]

Thanks Ruby1100 for the post from S Freed. I haven't gotten onto this Yahoo group for awhile since things have been so slow,

A comment that S Freed in this note reminded me again how well Addax fits the profile:

"However, what is to stop him from selling his shares to another company (and I'm not talking a major) for shares so he keeps the upside? He then remains an interested and viable shareholder (make that part of the deal) without the same problems. The only thing he gives up the the Chairman's seat. What is to stop that company from making a follow on bid for shares to the rest of us? If its a company with credible management, experience in the region and they come with a reasonable share bid, we'd really have to consider it. The only way I'd sell is if I get to keep the upside - swap shares for shares.

Positioning themselves on the London Exchange I think was very well timed. Late next year or early 2009, I certainly would not have a problem with Addax taking ERHE out in a share swap valuing ERHE +5 Billion $$ (higher or lower depending how the first drillings work out) and then ride Addax as it then becomes acquired by someone larger in the oil company food chain.

But now we set at $.30 and wait! :-)

Opus X

[balance_builder]

Ruby...post of the month IMHO!!!!!! Especially the last paragraph authored by S. Freed:

"Unless there is incredible pressure from the US authorities or he has a desparate need for cash, I do not see him selling outright. However, what is to stop him from selling his shares to another company (and I'm not talking a major) for shares so he keeps the upside? He then remains an interested and viable shareholder (make that part of the deal) without the same problems. The only thing he
gives up the the Chairman's seat. What is to stop that company from making a follow on bid for shares to the rest of us? If its a company with credible management, experience in the region and they come with a reasonable share bid, we'd really have to consider it. The only way I'd sell is if I get to keep the upside - swap shares for shares."

As we have been posting....the indicators DO POINT toward a deal of this nature being quite possible:

1) ERHC wouldn't need a CEO or CFO is being taken over via a buyin or a buyout.

2) ERHC's comments of having "identified" a CEO/CFO would make logical sense. They can't be identified until the paperwork of a buyin/buyout was complete.

3) 4. SHARE CAPITAL
"Addax Petroleum is authorized to issue an unlimited number of common shares and an unlimited number of preferred shares, issuable in series.'
http://www.addaxpetroleum.com/_media/Q1_Financial_Statements_2007_1.pdf

4)"•Continue aggressively to pursue value adding acquisition opportunities–bolt-on to broaden existing operations–expansion in our core areas"
http://www.addaxpetroleum.com/_media/Investor_Presentation_2007-02-14.pdf

5) bolt-on acquisition
Business jargon for a product (or company) acquisition that fits naturally within the buyer's existing business lines or strategy.
http://www.netlingo.com/lookup.cfm?term=bolt-on%20acquisition

6) "West African driller Addax will use its newly traded London shares as 'acquisition currency', said chief executive Jean Claude Gandur.

Of the dozens of smaller explorers and producers quoted in London, Gandur said: 'We see a lot of opportunities among all these assets listed on the London Stock Exchange and AIM. We will look at companies valued between $50 million and $2bn."
http://www.investorshub.com/boards/read_msg.asp?message_id=19943350

7)"then they will offer a buyout of erhc at approx. 4-5 shares erhe to one share of addax. because two to three of exxon's guys involved with exxon getting involved in the gog in the first place are now at addax, he was speculating that then exxon or possibly chevron will buyout addax in the next few years at about 100 per share."
http://www.investorshub.com/boards/read_msg.asp?message_id=15215616

8) "but the way I understand it, is that an undisclosed company is purchaseing half of SEO's stock at a price somewhere right above $2 and the remaining stock, as I understand it is either going into a non-voting trust, or is to be leveraged for an additional loan to SEO!"
http://www.investorshub.com/boards/read_msg.asp?message_id=15223958


It continues to be my opinion that ERHC has taken NO STRIDES to becoming a real oil company. If plans are intact....it would make logical sense to not care about a co's day to day events if ERHC is to become a "bolt on".

Yep...a very interesting post by S. Freed. Here are a couple of older thoughts posted by S. Freed:

"A "buy-in" as you call it is alive and well." 3-8-07

"I am hearing some very good rumours about Addax and rig availability.
Trying to confirm and will post when I do." 2-7-07

"Offor is not selling his whole position anyway." 1-15-07

"Addax is another natural buyer - lots of cash to add zero-strike call options to their positions as well as maintaining excellent relationships despite recent hiccups.

Those in the know might want to push Offor to decide on who to sell to before CVX's drill results come out. As we've seen in this area; the more information that comes out, the higher the value goes." 1-16-07

"Offor selling a piece

It is being worked on as we speak. It won't happen tomorrow, but the probability is high that it happens." 1-15-07

"The only thing real is the share price.
For clarity; if there is a deal on half of Offor's stake, I cannot see how the stock stays below $0.80, etc, etc."12-4-06

"As I said, the stars are aligning." 12-6-07

"My first post of December 4 still stands. As for current details, I am keeping quiet. Best to let the players have at it without interference." 12-18-06

"I am digging into Ledbetter and will report. However, it seems like a very good hire.

I would not be surprised if this move is linked if not integral to EO divesting some shares. As he is not an officer, he may be the first person in the door of a new regime - internal due diligence, if you will.

There is no such thing as coincidence." 12-20-07

"The stars are aligning toward a purchase of half of Offor's position (roughly 21% of the company) and his neutralization by installation into some structure where he does not vote or the buyer votes his remaining shares. This is a must for anyone to come in.

The price will not be near $2.00 a share. Offor cannot afford to hold out for that amount. 1) His cash needs are substantial and has not been paid on Starcrest (not that it's all his anyway). 2) He does understand that the moment he sells that the stock rallies significantly and his remaining ownership is enhanced. 3) No one would
pay such a premium to current price, notwithstanding what we may think it's worth in the long-run.

I expect the price to be at a slight premium to market to ensure an instant value uplift for the buyer.

I cannot see how this stock doesn't trade to $0.80 immediately and, depending on the actions of the buyer, proceed from there." 12-4-07

And here is another poster's selected comments that I place a substantial amount of weight on (Umbra):

"There will be no further dilution of ERHC shares in order to raise revenue.

Most of this new venture capital will come from our partners stripping out a significant if not total amount of EO shares."3-16-07

"Especially Swiss chocolate. EM" 10-12-06


Yep...logical. No sense in running a co like a co when one knows its soon going to become a part of a real co.