Replies to post #208560 on ERHC Energy Inc (ERHE)

[Krombacher]

Well, what amazes me about that comparison is that EXXI has a $1 billion market cap, which for ERHC is equivalent to having a $1.20 share price.

And the only things that EXXI has that ERHC does not are:

1) 76 million barrels of oil equivalent (BOE) of proved reserves
2) Nasdaq listing
3) AIM listing

Now of course the comparison becomes difficult because I'm not sure how much of the carry EXXI has in its blocks in the GOM, also I'm not sure if they pay operator costs.

But let's take the extreme case to prove a point here.

Let's say EXXI has ZERO operating costs, and 100% of its blocks. Odds are not, but just for kicks let's say that.

That means at 100% 76 million barrels, ERHC would have to have 5x that for its roughly 20% blocks. That means at worst, 380 million barrels of oil to make the companies equivalent.

Now surely, EXXI does NOT have 100% and/or they have some operator costs. Right?

So 380 million barrels of oil is on the high high end. To make the two companies equivalent, you probably don't need nearly as much oil.

Now NSAI says ERHC conservatively has 336 million barrels of oil. That does easily put EXXI vs. ERHC equivalent. The only differences? NSAI is not proven. EXXI is on better exchanges.

So are you telling me that the market thinks that even with a very conservative NSAI estimate, that the word 'PROVEN' for that puny amount is costing ERHC HALF A BILLION DOLLARS IN MARKET CAP?

Isn't that out of whack? I look forward to your comments.

Krombacher