Friday, May 19, 2006

Three Conspiracy Theories About Our 10-Q

The absent 10-Q that was supposed to be filed last week, and then filed within five calendar days ending Wednesday, is provoking an enormous amount of speculation on the message boards devoted to ERHC Energy. Here are some conspiracy theories that might apply:

Conspiracy Theory No. 1: The expenses related to winning the JDZ equity in Blocks 2, 3 and 4 were improperly documented, or not documented at all, and our new high-profile auditors, Malone & Bailey of Houston, will not allow them. The expenses were so high, though - like the $300,000 for travel declared a few years ago - that the absence of documentation could not be overlooked. In Africa, though, record-keeping is notoriously sloppy, and a lot of transactions are accomplished in cash on the African equivalent of a handshake. When expenses start to mount up into the million-dollar range, company officials don't want to have to pay them our of their own pocket when auditors won't approve them, so they stand still and fight about it for weeks until one side or the other gives in.
Probability rating of this conspracy being true: 95%

Conspiracy Theory No. 2: The service of a search warrant has resulted in many documents that are vital to the 10-Q being removed by the U.S. Marshal's office for inspection by Dept. of Justice lawyers and the FBI. Meanwhile, the company is in a holding pattern, trying to pacify investors as it demands copies of the seized material in order to make the filing.
Probability rating of this conspracy being true: 60%

Conspiracy Theory No. 3: It turns out, after all, that company officials are trying to keep the price down so that they can mount a substantial buy-back of shares, so that when the coil is tightened to the nth degree by the delay they can release their 10-Q and press release showing them debt-free with $45 million in the bank, so the profits on the newly acquired 2,000,000 shares as they soar to $1.10 or more will be close to $1,000,000 in a single day.
Probability rating of this conspracy being true: 25%

Please share your own conspiracy theories with us

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