Summary
- Dr. Lawal, Chairman and CEO, has spent almost $675K in 25 separate purchases.
- Multiple other members of Management and the Board of Directors have also made purchases.
- There are lots of reasons for insiders to sell stock, but only one reason to buy.
While there have been a few negative articles surrounding Erin Energy (NYSEMKT:ERN) over the past two years, I have continued to beat the drum about the operational success of the company in Nigeria, and the potential for continued growth in The Gambia, Kenya, and Ghana. For those that may still doubt, insider buying from Management should be a sign of the individual confidence in the company.
Dr. Kase L. Lawal: Chairman and Chief Executive Officer
Since the beginning of the year, Dr. Lawal has spent almost $675K purchasing shares in 25 separate transitions. Many of those were prior to the reverse split, and while the dollar value would remain the same, the equivalent in shares purchased would be almost 170K shares.
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(Source: data compiled from SEC filed Form 4)
Segun Omidele: Senior Vice President, Exploration & Production
Since the beginning of the year, Segun Omidele acquired 7,010 additional shares at a price of $32K.
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(Source: data compiled from SEC filed Form 4)
Nicolas Evanoff: Senior Vice President, General Counsel and Corporate Secretary
Since the beginning of the year, Nicolas Evanoff has spent almost $50K purchasing almost shares.
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(Source: data compiled from SEC filed Form 4)
Heidi Wong:,,Senior Vice President and Chief Administrative Officer
Since the beginning of the year Heidi Wong has purchased almost $15K in shares.
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(Source: data compiled from SEC filed Form 4)
Over the same period the stock climbed until spiking close to $9 and falling back to the current range just short of $4. Since beginning the purchases in January the stock is still up almost 100%.
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Conclusion
Insider purchases have long been considered a bullish signal for investors. At ERN, the company has been executing its plan to bring its fields in off shore Nigeria on line, and continuing exploration in The Gambia, Ghana, and Kenya. The insider purchases are key signals for investors that the company is on track and continuing to deliver.