Replies to post #225451 on ERHC Energy Inc (ERHE)

[Krombacher]

kownski,

the "who" would be someone who doesn't have enough "Nigerian content" due to the new laws passed, and therefore would need to divest some interest in the property in order to meet the qualification. I know that ERHC is based in Houston, but it is run by Nigerians and has a BOD consisting of Nigerians, so perhaps it meets the "Nigerian content" law.

That's just a guess.

Krombacher

[kobiashi2000]

It all comes down to the time value of money, say I have an oil producing property, I plan to make $100 million in revenues over the next 2 years, I can sell 10% for $5 million today to ERHC, have that $5 million in my pocket today, rather than waiting 2 years for $10 million, and I still have 90% of my field, ERHC coughs up the $5 million today, but gets a cash flow of $10 million over the next 2 years.