Replies to post #143013 on ERHC Energy Inc (ERHE)

[midtieroil]

I think EHRE is interested in all sorts of acquisitions. Unfortunately they don't have the money, don't have the expertise, they don't have the staff, they don't have the share price, they don't have anyone that will lend them money, they don't want to risk their EEZ and JDZ assets by doing something stupid, they don't want to dilute their stock, they don't want to take on debt, they don't have the balance sheet and so far they've shown common sense and haven't pulled the trigger and let's pray they don't. They already avoided one disaster by not buying a producing asset when oil was $140 so lets hope they are bright enough not to do it now either. It's the wrong time.

I also think getting two rigs is highly unlikely. They can't even find one so finding two seems like an impossibility to me. But we can all dream I guess if it makes us feel better.

[balance_builder]

Dadd...ERHC has indicated they are looking for an AIM listed co to either buy or buy controlling interest in. They will make this purchase utilizing a new subsidiary of the company. The assets must be producing or very near producing. Based on their comments, I look for them to buy via the issuance of new shares. Why some on don't seem to understand that ERHC hasn't said anything about buying property with our current cash is beyond me.

They also talked as if their may be a series of acquisitions so I listen loudly to Tryoty in this respect. Perhaps the "series" involves a number of smaller pieces. For some reason they aren't willing to leverage their JDZ assets for the purchasing of the new assets.....and I like to think this reasoning is because they have a deal in the works in the JDZ?

Dadd....I don't necessarily believe the below article is outdated. Recall the location of our last presentation when your read this article. Had you heard the rumor that WB's had an office next door to Addax's old office in Dubai?



Players in chase for JDZ stake

By Upstream staff

An unidentified US oil player is said to be among an assortment of investors trying to enter the Nigeria&Sao Tome Joint Development Zone in the Gulf of Guinea by acquiring the shares of Emeka Offor, the Nigerian chairman of Colorado-registered ERHC Energy, writes Barry Morgan.
ERHC holds substantial equity in the play, including preferential rights to blocks 2, 3 and 4 alongside operators Sinopec, Anadarko and Addax Petroleum.

The financial manoeuvre is being undertaken through the Dubai-based Millennium Finance Corporation, where former ERHC chief executive Walter Brandhuber is now fund manager with a brief to build up the energy portfolio.

Investors and Millennium Finance may be angling to take a stake in ERHC, drawn from stock sold by Emeka Offor, the company's largest single shareholder, who is in talks to offload at least half his 43% equity in ERHC.

Offor is facing legal threats by shareholders preparing individual and class-action lawsuits.

Their complaints range from compensation for unpaid fees to the alleged usurpation of corporate opportunity arising from a deal he struck with Addax Petroleum for deep-water acreage through Nigerian independent Starcrest Energy, another company he controls.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=15566437


As a clear response to your question of having any thoughts as to what the acreage/co's might be....no, I don't have much thought. This is what I do know about the assets being looked at and is from Jim Ledbetters comments from the August CC:

DD'ing properties in West Africa and North America. Looking at transparency, regulations and reserves. Have an professional unit looking at and determinining reserves. Will only buy/announce AFTER all three (transparency, regulations and reserves) show property to be of high quality. Could partner with reputable industry player in non operating minority stake. Property would have to be revenue producing or close to revenue producing.


I think it is important to also note the reqirements of purchasing the properties (i.e. transparency, regulations and reserves). The transparency mandate sounds very Islamic and their requirements for ownership. Check out Kipco or MFC and you'll see what I mean.


Dots again:
Jim indicates one of the properties being DD'ed is in North America. Barry's article of 12/06 indicates a US oil player was trying to enter the JDZ mix through MFC. Recently ERHC told us

"Could partner with reputable industry player in non operating minority stake." [J. Ledbetter 8/08 CC]




Again,,,,this post (link below) somewhat has some connections IMHO.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33106016