HOUSTON, Feb. 10, 2014 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, is pleased to announce the completion of its farm-out agreement with CEPSA (Compañía Española de Petróleos, S.A.U.), an international integrated oil and gas company. The completion of the farm-out follows the receipt of final regulatory approvals from the Kenyan Government.
CEPSA has acquired a 55 percent stake in Block 11A and will operate the Block in exchange for certain considerations. ERHC retains a 35 percent interest in Block 11A.
"This is an excellent time for the entry of a renowned operator like CEPSA," said ERHC President and CEO Peter Ntephe. "We have negotiated a mutually beneficial agreement that advances Block 11A toward drilling and enhances shareholder value."
The parties will proceed with a previously announced 2D seismic survey of at least 1,000 line kilometers of Block 11A in northwestern Kenya. The survey, which is expected to commence this spring, will be conducted by BGP Kenya Limited, one of the world's leading geophysical service companies.
Block 11A is an oil and gas exploration Block in northwestern Kenya awarded to ERHC last year. Encompassing 11,950 square kilometers or 2.95 million acres, the Block is situated on the border of South Sudan to the north, Block 11B and Lake Turkana to the east, and near Kenya's border with Uganda to the west.
In addition to its oil and gas exploration interests in the Republic of Kenya, ERHC holds interests in the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).
ERHC expects to file its next quarterly report on Form 10-Q within the next two weeks.
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 stockholders, 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.
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 stockholders' 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.