Unrisked Prospective Resources
-----------------------------------------------------------
Low Estimate (P90) Best Estimate (P50) High Estimate (P10)
------------------- ------------------- -------------------
Oil Gas Oil Gas Oil Gas
Prospect (MBBL) (MMCF) (MBBL) (MMCF) (MBBL) (MMCF)
--------- --------- --------- --------- --------- ---------
JDZ 2 40,577 45,742 77,007 93,948 119,476 150,706
JDZ 3 18,045 21,092 27,343 32,953 37,877 46,378
JDZ 4 150,990 157,133 231,667 245,308 319,434 342,658
--------- --------- --------- --------- --------- ---------
Total(1) 209,612 223,966 336,017 372,210 476,787 539,742
Risked Prospective Resources
-----------------------------------------------------------
Low Estimate (P90) Best Estimate (P50) High Estimate (P10)
------------------- ------------------- -------------------
Oil Gas Oil Gas Oil Gas
Prospect (MBBL) (MMCF) (MBBL) (MMCF) (MBBL) (MMCF)
--------- --------- --------- --------- --------- ---------
JDZ 2 19,492 22,334 38,334 47,908 60,320 78,150
JDZ 3 5,807 6,817 8,751 10,543 12,094 14,771
JDZ 4 58,666 56,244 88,437 86,282 120,297 118,961
--------- --------- --------- --------- --------- ---------
Total(1) 83,965 85,396 135,523 144,733 192,710 211,882
(1) Totals are the arithmetic sum of multiple probability
distributions. Totals may not add because of rounding.
Below is a brief glossary of what the terms mean:
Oil volumes are expressed in thousand of barrels (MMBL).
Gas volumes are expressed in millions of cubic feet (MMCF).
Prospective resources are those quantities of petroleum estimated as
of a given date, to be potentially recoverable from undiscovered
accumulations. This report examines ERHC's prospective resources as of
December 31, 2008.
Unrisked prospective resources are the volumes estimated to be
recoverable in the case of a successful petroleum discovery being made.
Risked prospective resources are calculated by multiplying the unrisked
resources by the geological chance of success to account for the risk
of drilling an unsuccessful exploration well.
P90 - The quantity for which there is a 90 percent probability that the
quantities actually recovered will equal or exceed the estimate.
P50 - The quantity for which there is a 50 percent probability that
the quantities actually recovered will equal or exceed the estimate.
P10 - The quantity for which there is a 10 percent probability that the
quantities actually recovered will equal or exceed the estimate.
The data in this report is extremely important in helping to assess the
value of ERHC's assets in the Gulf of Guinea. In fact, the NSAI assessment
will also be used by investment analysts to evaluate ERHC's holdings and
real net worth. Netherland Sewell used the latest assessment tools and
techniques to provide the highest level of accuracy possible short of
drilling.
On the exploration front, I can report that progress is being made in the
effort to secure a deepwater drill ship -- the so-called rig of
opportunity. Our technical partners will take the lead in announcing any
breakthroughs but we are pleased to be seeing action and are confident that
exploration will commence in the coming months in at least one JDZ Block in
which ERHC has interests.
Our technical partners Addax Petroleum and Sinopec Corp. have also
contracted the deepwater drill ship Aban Abraham. It has been frustrating
to endure the several postponements on the ship's availability, which has
prompted our partners to seek other solutions to prevent further delay. We
expect that the Aban Abraham will be available before the end of the year.
We continue to operate cautiously in the current global economic
environment. Our cost containment strategies helped to reduce the Company's
net loss during the first quarter by nearly 27 percent from the same period
a year ago. General and administrative expenses during the first quarter
decreased by more than 30 percent. Unlike many other companies large and
small, ERHC has ample cash assets totaling more than $31 million as of
December 31, 2008.
Our strong financial position has made it possible for ERHC to resume
implementation of management's growth strategy although we have had to
scale down the level of activity we were looking to undertake. The
treacherous financial climate has created difficulties for some companies,
and we are examining certain opportunities in which our financial strength
could be mutually beneficial. It is important to understand that we are
proceeding cautiously.
Finally, I want to address those who have asked if we are planning an
Annual General Meeting this year. We intend to hold the AGM before the end
of our fiscal year but have put it back for the time being so as to
concentrate our resources on activities that enhance shareholder value.
Until then, we shall employ cost-efficient means of communicating the
Company's progress to our shareholders and the investment community. We
encourage you to submit your questions to us and we will do our best to
answer as many as we can in a future update. Submit questions to Dan
Keeney, our investor relations representative at dan@dpkpr.com.
ERHC Energy remains focused on enhancing value for the benefit of its
shareholders. Thank you for your continued trust and support.
Sincerely,
Peter Ntephe
Chief Operating Officer
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.
Contact Information: Contact: Daniel Keeney, APR DPK Public Relations 832-467-2904