Contact Information: Contact: Dan Keeney, APR DPK Public Relations 832-467-2904
ERHC Energy Inc. Commences Arbitration in Blocks 5 and 6 of the Nigeria and São Tomé and Príncipe Joint Development Zone
| Source: ERHC Energy
LONDON--(Marketwire - November 25, 2008) - ERHC Energy Inc. (OTCBB : ERHE ), a publicly traded
American company with oil and gas assets in the highly prospective Gulf of
Guinea off the coast of West Africa, today announced that it has dispatched
notices of arbitration for service on the Joint Development Authority (JDA)
and the governments of Nigeria and São Tomé and Príncipe to commence
arbitration in London.
The arbitration relates to ERHC's rights in Joint Development Zone (JDZ)
Blocks 5 and 6. No Production Sharing Contracts have been signed in either
Block since working interests in the Blocks were awarded in 2005 to several
companies, including ERHC. ERHC was awarded a 15 percent working interest
in JDZ Blocks 5 and 6 in a 2005 bid/licensing round conducted by the JDA,
following the exercise by ERHC of preferential rights in the Blocks as
guaranteed by contractual and treaty arrangements.
ERHC wants the London Court of International Arbitration (LCIA) to clarify
that ERHC's interests in JDZ Blocks 5 and 6 remain intact. Earlier, ERHC
filed suit in the Federal High Court in Nigeria to ensure that no action
contrary to ERHC interests was taken in both Blocks pending the arbitration
in London.
Neither the notice of arbitration nor the lawsuit concerns any of ERHC's
other interests in the JDZ and in the São Tomé and Príncipe Exclusive
Economic Zone.
"We are hopeful that resolving this matter quickly and amicably will serve
as the spark needed for all interested parties to finally make the
long-awaited progress in Blocks 5 and 6," said ERHC Chief Operating Officer
Peter Ntephe. "Our involvement in JDZ Blocks 2, 3 and 4 has affirmed our
conviction on how well the process can work when operators have world-class
expertise."
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused
on growth through high impact exploration in the highly prospective Gulf of
Guinea 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.
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, response to the Senate
Subcommittee investigation, developments in the SEC investigation of the
Company and related proceedings, 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 the JDZ and the
exclusive territorial waters 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.