Replies to post #275456 on ERHC Energy Inc (ERHE)

[emdyal]

blank canvas

But Ntephe in into his 7th month of exploration activities in Kenya !!!!!!!!

[Krombacher]

In your post you claim:

It will be interesting to see how much ERHC can get in a farmout because what they are selling is a blank canvas. Most of the other deals done in Kenya were done AFTER substantial exploration work had already been done. -midtieroil

As we all know, Africa Oil had to give up considerable percentages of its blocks, with interest in some blocks not even exceeding 15 or 20%.

That happened because contrary to your assertion that *substantial exporation* had occured...in fact, Africa Oil did no exploration testing whatsoever in certain blocks.

On the other hand, ERHE has already indicated that it will do gravity studies in Kenya to increase the value of their blocks. Do they have to go through with it? No, just the threat that they might could cause a partner to offer a better deal.

Let's not forget that ERHE's block is also the LAST block before Kenya changed the rules for subsequent auctions of blocks. Kenya will be charging more in taxes, fees, etc. for future blocks.

The path of least resistance is to acquire ERHE's block...they are salivating for this block.

The rights offering was not a failure by any respect.

Most likely:

1) Their would-be partner called off any need for ERHE to use funds raised in an offering, because the threat alone cause their partner to act quickly before someone else got the block.

2) SEO most likely learned about this situation and decided not to participate. That is a HUGE vote of confidence in ERHE to accomplish its goals...most likely because ERHE got some cash from its partner, enough to move forward and execute its strategy.

If the above scenarios are true, then I would hardly call the stock offering "OBVIOUSLY" a failure.

I don't think it will be a huge jump because most people will realize drilling is still a few years away at best and there is a lot of work to be done just to see if any good prospects exist - midtieroil

Africa Oil's huge jump was 900%...and not a drop of oil was found at that point. EHRE had a HUGE jump before any oil was discovered in the JDZ. Even the poorly managed company, HDY, had a huge jump and they discovered no commercial oil.

Krombacher