Replies to post #227026 on ERHC Energy Inc (ERHE)

[daylatedolarshort]

When I read this, I don't get the impression that ERHC has completely turned their back on me as an investor.

ERHC announces JDA's approval for extension of Exploration Phase I in JDZ Blocks
Posted on: Fri, 01 Oct 2010 02:30:37 EDT

Symbols: ADXTF, ERHEE
Oct 01, 2010 (Datamonitor via COMTEX) --
ERHC Energy, an oil and gas
company focused on exploration and development, has announced that the Joint Development Authority has approved a six months extension of Exploration Phase I in Joint Development Zone Blocks 3 and 4.
The extension will enable the contracting parties to complete all studies needed for further exploration in the Blocks. Earlier in September 2010, ERHC supported Addax Petroleum, ERHC's technical partner and the operator of Joint Development Zone (JDZ) Blocks 3 and 4, in applying to enter into Exploration Phase II pending the completion of the studies.
Instead, the agreement was reached with the Joint Development Authority (JDA) to further extend Exploration Phase I to enable completion of the studies before commencement of Phase II.

Peter Ntephe, CEO of ERHC, said: "To date, there has been a tremendous amount of work carried out to update volumetrics of the resources, analyze geochemical samples, interpret sample analysis and reevaluate play concepts, but more time is required to conclude the study program. ERHC acknowledges the commitment and efforts of the Operator as well as the continued support and cooperation of the JDA."

What specifically is it that you want to know that you feel they are not telling you?

As far as the share price goes. It is my opinion we are in the .20's because of a "group" of traders that play this stock. If you look back at the charts you should be able to see that ERHC has always had a pretty predictable run. The difference this time around, there was a group dump resulting in the share price we see now. The traders took their profits in the .70's and .60's and have been building their new base. Some of them would like to see ERHC drop to.10. They will probably sell and take profits when we hit the.40's when the gap hopefully fills.IMO

What do you think the share price would be at now, if nobody ever sold?

[Krombacher]

you're telegraphing your moves to everyone. If you were really threatening legal action, then right now, your lawyer would be advising you to keep your chess moves close to your chest, imo.

That means, imo, you have neither seen an attorney nor will you be taken seriously until you do. Furthermore, since you are not a lawyer, you may be sounding completely ridiculous from Peter's perspective, a man who is a lawyer. Depositions and subpoenas aren't just carried out willy nilly.

midtier, let's face it, you are undereducated when it comes to the ways of the attorney (as am I, because I'm not a lawyer), hence either go see a competent attorney specializing in this sort of thing or get off the pot, lol.

I imagine just finding the right attorney will be quite some work. You will need someone(s) who is/are competent in securities law, international law (so that you can serve Peter in London), possibly Nigerian law, (so you can serve Sir Emeka Offor), etc.

Your attorney must be shrewd enough to know what defenses can be used and whether you have the wherewithal to fight them. Already, I don't see how you get past the Warren Buffett defense, whereby a majority shareholder does possess both material information and substantial influence on his investment but in exchange agrees not to trade on it or let his buddies trade on it. And that's just off the top of my head, and I'm not a lawyer.

So until you ACTUALLY talk to an attorney, all your posts are hot air, and that's just the way it is.

Krombacher

[Krombacher]

On what grounds can you sue? While I'm no lawyer, my first guess is proving you were harmed.

That should be easy enough the share price is lower now than it was before.

Next, you would have to prove that they harmed you. That's a tougher proposition. They warned you what they were going to do, namely a shelf to sell shares to raise cash for a potential acquisition.

*If* you bought a single share since their intentions were first broadcast to the world several years ago, then can they not claim that you knew of their plans and tacitly agreed to them by buying shares? So maybe they didn't harm you, but you harmed yourself.

Furthermore, if SEO is privy to insider material information, but does not trade on that information or induce others to trade on that information, then once again, how do you prove that his knowledge of this information has harmed you in any way?

Same thing goes for SEO influencing the company decisions. In fact one can argue that every shareholder who has ever written in to DK has somehow influenced the company. If the company is influenced in the "wrong" direction by some small shareholder, are you going to sue, say tryoty?

The *only* way you could have been intentionally harmed is if somehow ERHC officers intentionally withheld positive drill results not due to contractual obligations but for nefarious purposes of buying shares on the cheap for themselves. But that potential harm has been neutralized by their explicit release of company policy with respect to black outs.

If ERHC officers withhold positive drill results because of contractual obligations then they are not harming the company and its shareholders, they are protecting the company and its shareholders. And as I survey other companies in the JDZ, it is becoming readily apparent that that is the norm in the JDZ.

So what's left?

Define the harm that's been done to you. (i.e. lower share price)

Define how that harm was perpetrated on you in some illegal way. (incompetence might not cut it).

Prove that you did not tacitly accept the harm by buying shares after you knew what the intentions were, hence you did the harm to yourself.

And then maybe you have a case. So far it does not sound like you have a case to start subpoena's and depositions.

Krombacher

[TOB]

I've laid out the parameters clearly for avoiding legal action and resolving these matters in a friendly and cooperative manner and that is my preference. In my mind legal action is not in my best interest nor the company's.

But, if Management and the Board of Directors elects to continue to ignore us and pretend we do not exist, it will be them that caused the legal action, not me. Again, they know how to reach us. I have contacted them without involving any attorneys in the manner they prescribed in the proxy statement. I am following their rules. I am giving them the ridiculous period of 3 full months to respond. After all, "we can't expect them to drop everything they are doing and respond to a letter".

The ball is in their court. I am hoping they act appropriately, professionally and competently in resolving this matter.

Heh, sounds grave. Perhaps you could get this on Judge Judy for the upcoming season?

Middler feeling unacknowledged... not sure if that could be built into a cause of action though, you may have to flesh things out a bit. :-)

The damage is how much exactly? I assume you sold out and have closed losses to compare with what, some prior high? Then you must demonstrate that not responding to your letter somehow materialy caused that loss? The share price rises or falls relative to your feeling ignored, rejected and unappreciated?

I'd love to see how your attorney words the complaint. Seems a no brainer for the defense to just assert the obvious: The share price fell because the first phase of five wells came up dry.


...
Ps. To the person PMing me, I'm not ignoring you, my account doesn't let me reply. I fully realise ERHE is not a company in the sense of XOM or even RIG. They are a little holding company with public shares. They have a long way to go just to be listed on a real exchange. IMO, if no oil is ever found where they currently have rights, they fold like a house of cards. I'll be amazed if they develop into more than that.