The Chad and Kenya Exploration Phase fund raise is definitely in stages over the next 18 months.
Both CEO Peter Ntephe and Vice President Sylvan Odobulu stated this clearly. Also there may only be the one initial Rights Offering for ERHE shareholders as there are other funding options possible, especially if there is a rising share price, JV farm-in, IPO, or other successful fund raise and cost sharing over the 18 month target period.
This is why I'm predicting the Virtuous Cycle of ERHE shareholder value creation and saying that this Rights Offering is the opportunity for us shareholders to get shares at a discount on the same terms as The Chrome Group.
To me that is what this bet in ERHC has been all about initially, my respect for Sir Emeka Offor as a successful and well connected business man building an oil empire with a home field advantage.
But more and more ERHC is growing into an independent and capable company, and my respect is growing for our CEO Peter Ntephe, Vice President Sylvan Odobulu, our excellent Board of Directors, our legal adviser Reginald Sewell, and our impressive and growing exploration and technical team.
It is very positive in my opinion that Sir Emeka Offor continues to support ERHC, even to the extent of providing more capital.
So I'm quite happy to be getting the same opportunity with this initial ERHE shareholder Rights Offering as Sir Emeka Offor! If he thinks it's a sweet deal then I'm on-board, simple as that.
But I also see ERHC growing into much more than what it is now. I note the stunning success and growth of other Chrome Group companies like Kaztec and Starcrest, and Joint Ventures such as Elcrest.
I believe that The Chrome Group would not be maintaining its significant minority ownership share of, financial support of, and affiliation with ERHC without a strong belief that it will become a financial success.
Note that Eland is quite similar to ERHC, with Sir Emeka Offor owning 4.7% of Eland, and The Chrome Group's Starcrest owning 55% of the primary JV vehicle with Eland, Elcrest.
