HOUSTON, Nov. 13, 2013 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued an update on the Company's progress.
ERHC Shareholders:
ERHC is pleased to present highlights of the Company's recent progress.
Republic of Kenya Block 11A
- ERHC has concluded a farm-out agreement with a renowned integrated oil and gas company.
- The farm-out agreement is subject to the consent of the government of the Republic of Kenya.
- Under terms of the agreement, ERHC would transfer of a portion of its interest in Kenya Block 11A as well as operatorship.
- The proposed farm-out agreement includes a carry and other considerations.
- As required under the farm-out agreement, until government consent is granted, details regarding the partner and terms will remain confidential.
- Pending government consent to the farm-out agreement, ERHC continues to operate Block 11A.
- Work is ready to commence on the airborne Full Tensor Gravity Gradiometry (FTG) survey of Block 11A following the subcontractor's completion of work on a neighboring block.
"This is an excellent time for the entry of a technically and financially capable operating partner," said ERHC President and CEO Peter Ntephe. "We have negotiated a mutually beneficial agreement that advances ongoing exploration in Block 11A and enhances shareholder value."
Republic of Chad Block BDS 2008
- A comprehensive Environmental Impact Assessment (EIA) of ERHC's approved work program on Block BDS 2008 is nearing completion.
- The EIA is being conducted by ERHC's subcontractor ASAT (Archeologie et Socio-Antropologie au Tchad) and is the necessary first step in exploration.
- ERHC is currently accepting bids for an airborne FTG of its BDS-2008 block which is the next step in the approved work program.
- BDS 2008 overlies the Doseo Basin, which hosts much of Chad's current oil production.
"We are pleased to be making progress with our exploration work program in Chad," said Mr. Ntephe. "These are all necessary steps toward eventual drilling."
São Tomé and Príncipe Exclusive Economic Zone (EEZ) Blocks 4 and 11
- Both ERHC and the National Petroleum Agency of São Tomé and Príncipe(ANP-STP) are conducting legal reviews of the draft Production Sharing Contracts (PSCs) for EEZ Blocks 4 and 11, the significant terms of which have been finalized by the parties.
- ERHC's and the ANP-STP's efforts to generate interest in the EEZ as a whole have increased interest in ERHC's EEZ Blocks among International Operating Companies (IOCs).
- ERHC is in discussions with several IOCs about possible partnerships following the signing of the PSCs in Blocks 4 and 11.
"We are very happy that after many years of work, there is now palpable momentum building toward exploration of the Zone – both in our Blocks and in neighboring Blocks," said Mr. Ntephe.
Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ) Blocks 2, 3 and 4
- The Joint Development Authority (JDA), ERHC and other contracting parties are continuing to review possible next steps.
- One of the possibilities that the parties are collectively examining is to bring in exploration companies to spread risk and to reinterpret existing data with a fresh perspective and possibly a fresh exploration strategy.
"Despite the unexpected outcomes of the initial drilling campaign, we remain enthusiastic about the JDZ and believe that taking a new mindset to the exploration effort would be a very positive development for all involved," said Mr. Ntephe.
If you have questions, please reference the Company's SEC filings, which are available at http://erhc.com/secfilings/ or contact Daniel Keeney, ERHC's investor relations representative, at dan@dpkpr.com.
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.