The news of the past week - articles from Upstream, Energy Intelligence Update, and an interview with Ali Memon that ran in This Day Online all contributed little to our knowledge of ERHC Energy (OTC BB: ERHE) and its prospects in the Gulf of Guinea.
The interview, in particular was disappointing. Instead of asking why the huge sell-off occurred just after awards, or how much of the $54 million in increased signature bonus fees ERHC would be asked to bear, or clarifying exactly what participation we will enjoy in the additional acreage, the interviewer focused on rhetorical questions about our technical competence and why we won awards. There was one article that defended the awards while also defending politicians, which tainted it somewhat.
The overall effect, as we saw on Friday, was generally negative, and that lingering sour taste is likely to remain in the mouths of traders as this week's market action gets underway. Thus, we anticipate another day of wandering, pointless ups and downs, much like the nonsense posted on Raging Bull. That could mean a several-cent swing in both directions as the day wears on, probably on volume in the 1.3-million range - nothing to write home about.
Update, 7:12pm EDT, 6/13/05: We closed at $0.575, off $0.015, on low volume of 576,882 shares. Buying interest has pretty much evaporated, and won't appear again until significant news arrives. The letters of acceptance are not significant, but the Production Sharing Agreements with our partners and the JDA are. Once those are complete, and when drilling begins next year, we will see substantial gains.
In the meantime, any near-term buying frenzies are going to be strictly buyout-related. The latest note from mutwadadi, received yesterday, did not mention it again.
Update, 2:01pm EDT, 6/13/05: Just a lot of aimless up and downs today, all within a narrow $0.04 range. Look for more of the same towards the close.
Update, 8:25am EDT, 6/13/05: The Bid and Ask are both $0.59, which is typical of the craziness lately.
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