ERHE closed Friday session at $0.135 and 8.16% lower than the previous close on a trading volume reaching over 3.6 million shares. During the day, the share price marked a new yearly bottom at $0.12, which made ERHE value half of what it used to be just a couple of months ago.
No particular reason for the new yearly bottom can be pointed out, but for a company with no established revenue sources the market cap of almost $100 million is still remarkable. The latest announcement from the company came about three weeks ago. Then, ERHE issued a press release to update its shareholders about its latest activities and developments, but the update obviously did not sound promising to investors since after that ERHE started losing value even stronger than before.
According to that last update, the company is still negotiating, or is about to start the negotiations, for certain contracts about the works on its properties. In combination with ERHE latest quarter report that was filed in the beginning of February, the lack of any progress could have been disappointing, but maybe not that surprising.
ERHE 10-Q says that the company was founded in 1986 and was engaged in a variety of businesses up to 1996, when it began its current operations. They are focused on the exploration of oil and gas properties in the Gulf of Guinea offshore of central West Africa, but as already mentioned have not produced any results so far. Thus, despite the $13 million of cash that ERHE had at the end of last year and its lack of long-term debts, the future seems highly uncertain and risky for the stock to appreciate in the near future.
