Replies to post #268774 on ERHC Energy Inc (ERHE)

[Krombacher]

Here's a thought.

At one point in time SEO was much more involved with ERHC, and he secured the JDZ, EEZ, etc.

Then the DOJ issue came into play, and for the sake of the company SEO stepped down.

SEO then went on to become involved with Chrome, Blair's company, etc.

Many here were unhappy that SEO was cutting deals on Shell's old properties and other activity without also bringing ERHC into the loop.

So now the DOJ issue has been cleared with a letter from the DOJ saying the investigation is now over and ERHC has a clean bill of health.

This is an opportune time for SEO to come back into the picture with more visibility by taking control of the company.

With control may come SEO's goodies, like what he did for his other companies.

Some people think that SEO is a liability to ERHC, without providing any real rationale as to why that would be especially given that SEO is already ERHC's biggest shareholder, so does it really matter if he has control? What are you afraid of would happen? SEO has control of some of his other companies doesn't he? Aren't they doing just fine?

In fact, by having control of the company, SEO can approach suitors more easily when he ultimately sells the company for a higher price.

Imagine you are a suitor. Would you want to buy SEO's share and then have to also go through the hassle of buying the remaining shares from the illiquid OTC market just to gain control?

Wouldn't it be easier to gain control simply by buying SEO's shares alone, instead?

Krombacher

[Krombacher]

Also given how slow Sao Tome moves, getting a farm in the EEZ or selling EEZ assets is probably wishful thinking for things to happen soon enough to explore the more interesting and cheaper to develop Kenya assets.

Now the company could have gotten a farmin deal on Kenya perhaps. Certainly, I would have liked to see that because such a news event would have propelled their share price allowing them to raise more money with far less dilution.

Furthermore, when they did do their dilution in the above scenario, they could have offered a stock offering now with a higher buy in price of say 20 cents and made the expiration date long dated.

Furthermore, in an ideal world, SEO could have purchased his shares on the open market and gotten control that way, while boosting the price.

But this is not an ideal world.

Second, ERHC management had to make a decision here. Should they get a farmin now in Kenya and be in a weaker negotiating position and give up more percentages? Or should they instead raise money at this low share price level, do some studies to potentially improve the attractiveness of the Kenya property and be in a better negotiating position?

They decided to do the latter.

That should tell you something, however. It should tell you that management thinks the Kenya blocks are so worth it that they don't want to give up what they believe are valuable percentages.

And you can thank Thuo for that conclusion, most likely.

Krombacher