News that a payment of $18 million to debt-free ERHC Energy is coming and that the company will get 25 percent more of Block 4 than agreed to with Noble Energy - and a full carry to first oil - is once again lifting ERHE shares, which have traded as high as $0.449 today and now are up $0.028, or 6.8 percent on heavy volume of 1,728,097 shares at 11:08am EST.
The good news? The Addax IPO, which by SEC rules cannot be published in the United States, remains a secret to most of the investment world as it has not yet been reported by Dow Jones or Reuters.
News of the $18 million payment and larger share, along with the end of the probe launched by the government of Sao Tome and Principe into the award of blocks in the Second Licensing Round of the Nigeria-Sao Tome and Principe Joint Development Zone last May 31, has moved the share price about $0.12 since it hit a low of $0.32 just about two weeks ago.
Update, 11:26am EDT: The price is settling back down, with the last sale at $0.435 and the Bid at $0.43. We were tempted to sell some shares at $0.445, but we think there may be yet another surge in price late this afternoon. The most significant gains in the short term will come from a news agency reporting on the Addax IPO, and that could presumably happen anytime between right now and the day the $18 million payment is made.
Update, 12:05pm EDT: The price has improved, and is now at the high of the day $0.45 with the Bid at $0.445. Volume is roughly 2.1 million shares, with Buys running 1,471,942 to Sells of 763,306, and 47,200 undetermined.
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