Unbelievably high interest marked yesterday’s trading session of ERHC Energy Inc. (OTC:ERHE). Was it a justified act or just a pure chance
Closing the session at $0.094 per share, ERHE put a temporary stop to its generally negative stock trend. Thus, ERHE gained a little over 2%. As minuscule as it may seem, it can easily be classified as a real feat considering that it occurred on a massive volume of 3.8 million, i.e the highest turnover in 52 weeks.
The big surge in volume has nothing to do with corporate news, as long as the company has not submitted any updates for the last two weeks. In this respect, the last bit of news popped up on Oct. 18 when ERHE announced it was going to start negotiating with the National Petroleum Agency of Sao Tome and Principe (ANP-STP) over a Production Sharing Contract (PSC) in a fortnight.
Headquartered in Houston, ERCH Energy Inc. claims to be an independent oil and gas company with assets in sub-Saharan Africa. The company is also looking for other underdeveloped and marginal oil and gas fields.
ERHE’s latest financial report covers the second calendar quarter of 2011. As seen in the official 10-Q form, the company’s balance sheet a/o Jun. 30 includes the following numbers among others:
- cash reserves in excess of $9.8 million;
- marketable securities exceeding $5 million;
- minuscule liabilities of $209K and net working capital of approx. $15 million;
- net quarterly loss of $876 thousand.
Although Q2 of 2011 is the forth consecutive time ERHE has recorded a negative net result, it has shown clear signs of improvement in this direction. The losses have been getting smaller each quarter. Plus, ERHE disposes of sufficient capital of almost $14 million in the form of highly liquid assets. Provided that the company continues to decrease its quarterly losses, it will stand a good chance of going in the black in the foreseeable future.
