After two extraordinary sessions, ERHC Energy Inc. (OTC:ERHE) has now fallen victim to a dramatic turn of events.
Elated at the prospect of a third consecutive massive surge, ERHE stock enjoyed significant interest throughout the latest session that took place yesterday. Contrary to investors’ expectations, however, ERHE went down 7%, closing at $0.155 per share. Moreover, the depreciation in value occurred on a volume of 1.713 million shares. For the record, ERHE scored higher volumes during the two preceding sessions when it also improved its value significantly.
A quick glance at our promotional database reveals that ERHE stock is by no means a promoters’ favourite. As it is, the company uses a much more conventional approach to keep its stock alive by keeping investors fully informed about its corporate actions. Indeed, ERHE’s fantastic market performance on Jun. 30 and Jul. 1, respectively, is entirely due to a specific press release which popped up prior to Thursday’s session. According to it, the Republic of Chad had officially awarded ERHE three oil blocks. Furthermore, the company was granted an official approval to perform all sorts of activities with regard to the future exploration and development of the blocks.
ERHE is a registered SEC filer, which is why it occupies the premier OTCQB marketplace. As expected, the company submitted a 10-Q form for the first calendar quarter of 2011 in May. According to the unaudited balance sheet, ERHE’s financial situation as of Mar. 31, 2011 shows:
- cash reserves in excess of $12.2 million;
- $17.5 million in current assets vs. $0.276 million in current liabilities;
- net loss of $1.03 million as compared to 1.26 million incurred in Q1 of 2010.
