HOUSTON, March 18, 2013 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today announced it closed its rights offering at the close of business, Friday, March 15, 2013. As described in the Prospectus Supplement filed with the SEC on December 27, 2012 relating to the rights offering, the subscription agent, Corporate Stock Transfer, will now reconcile accounts.
Once all accounts have been reconciled, those who exercised subscription rights and those who exercised over-subscription privileges will receive the appropriate number of newly issued shares of ERHC Energy common stock. The reconciliation period is expected to take at least several days.
"We very much appreciate the support of all stockholders, but we especially wish to thank those who participated in this rights offering, which represents a major step toward proceeding with exploration and development activities in the Republics of Chad and Kenya," said ERHC President and CEO Peter Ntephe.
ERHC's rights offering was an initial step in its fund raising strategy. The Company is already in discussions with new investors about raising additional funds through registered direct offerings. The amount the Company will seek to raise through these activities will depend on the outcome of the reconciliation of accounts from the rights offering, which is currently underway. As previously disclosed, ERHC is also continuing to work to farm-out a portion of its assets in Kenya, Chad and the São Tomé & Principe Exclusive Economic Zone (EEZ) to spread the risk.
ERHC has a Production Sharing Contract with the Government of the Republic of Kenya on Block 11A in northwestern Kenya, in the vicinity of recent significant oil discoveries. The Company has interests in three oil blocks in Chad – Block BDS 2008, Manga and Chari-Ouest Block 3 – as well as a 100 percent working interest in Blocks 4 and 11 of the São Tomé and Príncipe EEZ free of signature bonuses. ERHC also has interests in six of the nine Blocks in the Nigeria - São Tomé & Principe Joint Development Zone.
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in Africa and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors and employees, and to sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production. For more information, visit www.erhc.com.
The ERHC Energy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11579
Cautionary Statement
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 Kenya, Chad, the JDZ and the Exclusive Economic Zone of São Tomé and Príncipe, 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.