Archive for March, 2009

Today I would like to introduce you with the company which engages in the exploration and exploitation of oil and gas reserves in the Gulf of Guinea offshore of central West Africa. It is ERHC Energy Inc. (ERHE.OB). Currently, the stock price is at $0.30 with the stock volume of 836,300.

Although most companies listed on the Over-the-Counter-Bulletin-Board do not file their filings, ERHC Energy seems to be a company of a different type. It has a responsibility over investors or people thinking of the investment opportunity in this company.

Looking at the company’s financial situation, several positive as well as negative aspects can be observed. As indicated in the balance sheet, the company has enough money and is able to pay all the debts. Actually, there are about six times more assets than debts, and about 98 percent of the assets are in cash, so they are not dependable on the inventory to be sold (if you want to see the complete balance sheet, click here). In addition, one more positive sign of the company’s performance is that ERHC Energy does not have long term liabilities.

On the other hand, the income statement (for a complete income statement of the company, click here) does not suggest a very positive perspective of the company. The company does not earn anything. It suffers loss rather than gets profit from the exploration and exploitation of oil and gas reserves.

All in all, people have started to talk about this company more than usually. This might be a good start-up for investment though, personally, I don’t trust companies which are on the OTCBB or the Pink Sheets. But it’s your choice.