Whomever has committed millions of dollars to buying ERHC Energy shares has extended his buying spree into a second day as the share price heads toward $0.49 and above. Taking advantage of the movement, we sold 52,000 shares at an average of $0.47, giving us now an average cost under $0.40 and a portfolio of 60,000 shares that is ready to grow.
Although there were far more sellers today than yesterday - when the buyer completely dominated the board and the final Buy/Sell ratio was in excess of 4:1, today's Buys outpace Sells 2,096,615 shares to 1,247,372, with 210,797 unidentified. The latter is a big number and indicates many are playing the margins of profit very narrowly, buying just above the Bid and selling just below the Ask.
At 3:10pm, as the afternoon surge gets underway, there is no sign yet of a strong buying or selling mood, either, with the Bid at $0.48 and the Ask at $0.485 and trading quiet. We are offering another lot for slightly more than the current Ask.
No one has identified the buyer as yet, but rumors persist that it is Hungarian billionaire George Soros, who may have funded a study done by Jeffrey Sachs of Columbia University that sought to establish the fundamentals of a better economy for Sao Tome and Principe, the two-island nation of 165,000 people who stand to benefit greatly from oil deposits offshore West Africa and in the Nigeria-Sao Tome and Principe Joint Development Zone and their own Exclusive Economic Zone. ERHC Energy has substantial concessions in both of those zones, and has partnered with two top mid-tier players, Pioneer Natural Resources and Noble Energy, in Blocks 2 and 3 and Block 4 of the JDZ, respectively.
The prospect that it is George Soros is somewhat troubling, however, if he is now moving to take advantage of a situation in which the Sao Tomean government is implementing a plan he developed for management of oil revenues. But that is nothing more than speculation at this point, and some attribute the heavy buying to a positive report on ERHE in the Penny Oil Speculator issue that came out Wednesday.