HOUSTON, July 7, 2015 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCMKTS:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued the following update on Company activities from Dr. Peter Ntephe, president and chief executive officer.
To ERHC Shareholders:
I am pleased to update the investment community and other interested parties on ERHC Energy Inc.
1. Kenya Block 11A
a. Preparation continues to intensify for spudding the first well at the Tarach-1 prospect in March 2016.
b. The Tarach-1 prospect is situated in the central part of the Tarach basin. It is a three-way structural closure trapping against a North - South trending normal fault.
c. The mean estimate of oil prospective unrisked resources for the prospect is 65 million barrels.
d. Mean unrisked prospective resources of all prospects and leads in Block 11A totals 645 million barrels.
e. ERHC holds a 35 percent interest in Block 11A.
f. It is important to remind investors and other stakeholders that no wells have previously been drilled in our Blocks in Kenya and Chad. While the geological and geophysical work indicates prospectivity, there are no guarantees before drilling that there will be a discovery of hydrocarbons. If there is a discovery, there is no guarantee that it will be commercial or in such quantities as to justify a development project.
2. Chad Block BDS 2008
a. ERHC's exploration team is developing a Request for Proposals for a 2-D seismic acquisition program.
b. Given the current environment and continued constraints on funding for oil exploration activities, one option we are exploring is the possibility of a right-to-earn partnership in exchange for seismic services.
c. ERHC holds a 100 percent interest in BDS 2008.
d. Based on the result of an aero-magnetic and gravity survey that ERHC completed over the Block, total Petroleum Initially in Place (PIIP) for one of ERHC's two focus areas has been estimated at 278 million barrels (with a high case of 876 million barrels).
3. São Tomé and Príncipe Exclusive Economic Zone (EEZ)
a. Negotiations continue regarding ERHC's efforts to farm-out its stake in EEZ Block 11.
b. A previously disclosed Memorandum of Understanding with an International Operating Company (IOC) continues in existence until further notice.
4. Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ)
a. The Joint Development Authority, together with ERHC and other interested parties, have begun integrating the geological and geophysical (G&G) and well data into a single data room.
b. A comprehensive data room is crucial to revitalize interest in future exploration of ERHC's JDZ Blocks 2, 3 and 4, and to attract new exploration partners.
c. A five-well exploration campaign in 2009-2010 in JDZ Blocks 2, 3 and 4 failed to discover hydrocarbons in commercial quantities but yielded invaluable information that will guide future exploration.
5. Other Business Activities
a. Deloitte Corporate Finance LLC (DCF) continues to work with ERHC on the marketing of farm-outs on the Company's oil assets in the Republics of Chad and Kenya.
b. ERHC and its advisers are examining certain capital restructuring options we have previously described, including but not limited to a reverse stock split, to facilitate new strategic investments and other business development possibilities.
c. In light of current economic conditions, ERHC continues to minimize costs across board. Investor relations and outreach has been affected. ERHC will continue to satisfy mandatory regulatory requirements for disclosure, particularly to shareholders as a whole. ERHC cannot, however, for the time being, directly or through agents, contractors or consultants, continue to incur the expense of responding to each and every one of the numerous enquiries we receive daily (except where specifically mandated by law). We thank all our shareholders for their continued high level of interest in ERHC's activities and trust that they will understand the imperatives of the current economic climate.
d. ERHC continues to encourage shareholders and others to refer to quarterly and annual filings with the SEC, which can be found at http://erhc.com/secfilings/. Questions can also still be submitted through http://erhc.com/contact/. Except where regulation mandates direct responses, questions will be aggregated and themes arising therefrom answered in our FAQs section on the website (http://erhc.com/faq/) or, as appropriate, in our quarterly and annual filings.
e. The Company's fiscal third quarter ended on June 30th. As is standard practice, information about ERHC's operations and financial position for the quarter, including the requisite outstanding shares and capitalization figures, is now being compiled. ERHC will disclose this information, as required by law, in the 10-Q filing to all shareholders at the same time.
f. Those who review our filings are aware that our executives continue to invest in ERHC's stock. Furthermore, our executives are also looking to participate in a non-executive capacity in other investment vehicles that might, subject to satisfaction of all regulatory requirements, provide beneficial synergies.
Finally, we mourn the recent passing of our colleague and associate Allahoudoungar Blaise. Mr. Blaise served as ERHC's hardworking Administrative and Logistics Manager in Chad. All of us at ERHC express our heart-felt sympathy to Mr. Blaise's family and friends.
We thank you for your continued interest in ERHC.
Sincerely,
Peter Ntephe
President and Chief Executive Officer
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.