ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company
with oil and gas assets in Sub-Saharan Africa, today issued the
following update on Company activities from Peter Ntephe, chief
executive officer.
To ERHC Shareholders:
I am pleased to update the investment community and other
interested parties on ERHC Energy Inc.
Sao Tome and Principe Exclusive Economic Zone
(EEZ)
I am happy to report that ERHC and the National Petroleum Agency
of Sao Tome and Principe (ANP-STP) continue to make meaningful
progress on the most critical terms of the Production Sharing
Contracts (PSCs) for the Company's two exploration Blocks in the
EEZ. We participated in an intensive two-day face-to-face round of
PSC negotiations with the ANP-STP in Sao Tome at the end of
February in respect of ERHC's 100 percent working interests in EEZ
Blocks 4 and 11.
While there, ERHC representatives had the opportunity to be part
of the crowd at the Estadio Nacional 12 de Julho that watched the
Sao Tome and Principe National Soccer Team win 2-1 in their African
Cup of Nations qualifier against Sierra Leone. It was a good
opportunity for ERHC to visibly identify with its host community
and firm up social relations. Many congratulations to the Sao Tome
and Principe team whose results in this round of qualifiers have
been impressive.
Joint Development Zone (JDZ)
The one-year extension of Exploration Phase 1 in JDZ Blocks 2, 3
and 4 expired this week. The contracting parties and the Joint
Development Authority have been meeting to determine the way
forward. When final resolutions are reached and formalized, ERHC
will inform shareholders.
Earlier this year, we explained the following three potential
courses of action:
- The operators and the Joint Development Authority (JDZ) that
oversees the JDZ could agree upon a plan for future exploration of
one or more of the JDZ Blocks with specific proposed work plans,
timelines and budgets.
- The operators and the JDA could agree upon a further extension
of Exploration Phase 1. Similarly, they could agree to proceed with
exploration, but subject to further studies and with no specific
work plan or timeline of when such exploration would commence.
- The operators could decide not to pursue future exploration of
the JDZ Blocks. If this were to occur, ERHC would be able to seek
new operating partners for the JDZ Blocks.
ERHC management continues to work closely with all interested
parties to advance the interests of the Company and shareholders in
these matters.
Meanwhile, Total is expected to commence drilling in JDZ Block 1
before the end of March. Last year, Total announced it would invest
$200 million in drilling two wells in JDZ Block 1 this spring. Even
though ERHC does not have interests in JDZ Block 1, having an
experienced and respected major such as Total actively drilling in
the region reflects positively on the JDZ as a whole.
Chad
ERHC's preparations for the commencement of its oil and gas
exploration work program for the Chari-Ouest III, BDS 2008 and
Manga blocks is continuing to gather steam. Last week, our
request for expressions of interest for conducting environmental
impact assessment (EIA) for the work program was advertised
internationally, including, notably, in Upstream, the international
industry newspaper. More information is available by visiting
http://erhc.com/news/environmental-impact-assessement-in-chad/.
ERHC is also seeking expressions of interest from qualified
contracting companies to conduct seismic work and gravity and
magnetic studies, which will be the focus of the first 18 months of
the work program.
Additional Technical Expertise
In the past few days, Mr. Martin Wensrich has joined ERHC's
technical team. Mr. Wensrich is an experienced geoscientist and a
proven oil finder with over 36 years in the industry. Mr.
Wensrich's skills and experience will be applied to the Chad
exploration program in particular.
In recent months, we have rapidly grown ERHC's executive
technical team with the addition of several highly qualified and
experienced technical professionals. This is an important aspect of
ERHC's announced strategy of transforming itself from an
offshore-focused, non-operating company to a company with both
onshore and offshore assets, some of which it operates in its own
right.
Annual Meeting of Shareholders
ERHC has filed the Proxy Statement for the Annual Meeting of
Shareholders, which will take place at 3:00 p.m. on Thursday, April
26, 2012. The date of the meeting was changed from April 24, 2012
which we earlier announced to the new date of April 26, 2012 for
more cost-efficient logistics. The meeting will be held at The
Renaissance Houston Hotel, 6 Greenway Plaza East, in Houston,
Texas. The Proxy Statement is posted at
http://www.sec.gov/Archives/edgar/data/799235/000114036112015211/formdef14a.htm.
Shareholders of record of shares of ERHC Common Stock as of the
close of business on March 26, 2012, are entitled to participate in
and vote at the meeting. Agenda items include the election of five
Directors, the ratification of MaloneBailey, LLP as the Company's
independent accountants for the 2012 fiscal year and other matters
that may properly come before the meeting. We hope you are able to
join us and look forward to greeting as many shareholders as
possible in person.
Thank you all for your continued interest in ERHC and your
trust.
If you have questions, please ask the Company directly through
its investor relations representative, Dan Keeney (214.432.7556 or
dan@dpkpr.com).
Sincerely,
Peter Ntephe Chief Executive Officer
The ERHC Energy Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11579
This press release contains statements concerning ERHC
Energy Inc.'s future operating milestones, future drilling
operations, the planned exploration and appraisal program, future
prospects, future investment opportunities and financing plans,
future shareholders' meetings as well as other matters that are not
historical facts or information. Such statements are
inherently subject to a variety of risks, assumptions and
uncertainties that could cause actual results to differ materially
from those anticipated, projected, expressed or implied. A
discussion of the risk factors that could impact these areas and
the Company's overall business and financial performance can be
found in the Company's reports and other filings with the
Securities and Exchange Commission. These factors include, among
others, those relating to the Company's ability to exploit its
commercial interests in Chad, the JDZ and the Exclusive Economic
Zone of Sao Tome and Principe, general economic and business
conditions, changes in foreign and domestic oil and gas exploration
and production activity, competition, changes in foreign,
political, social and economic conditions, regulatory initiatives
and compliance with governmental regulations and various other
matters, many of which are beyond the Company's control. Given
these concerns, investors and analysts should not place undue
reliance on these statements. Each of the above statements speaks
only as of the date of this press release. The Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement to reflect
any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any of the
above statements is based.
CONTACT: Dan Keeney, APR
DPK Public Relations
832-467-2904
dan@dpkpr.com
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