HOUSTON, Dec. 22, 2014 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCMKTS:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today announced the temporary suspension of the Company's policy that had prohibited insiders from purchasing shares during certain blackout periods. The suspension is as a result of a Board resolution passed at the request of the Company's management.
Since the end of ERHC's fiscal year on September 30, 2014, the Company has been in a blackout period. This happened to coincide with a major upheaval in the international oil industry – an unexpected drop in global oil prices to their lowest level in more than five years. This has significantly reduced the valuations of oil exploration companies, including ERHC.
"The board and management of ERHC felt urgent action was needed to permit insiders the opportunity to show confidence in ERHC and its oil exploration assets," said ERHC President and CEO Dr. Peter Ntephe. "The Company's current valuation appears out of alignment with the fundamental value of its holdings."
The Board only suspended the prohibition on purchasing shares during blackout periods. Still in place is the policy that prohibits employees, consultants, directors and officers of the Company from selling ERHC securities during blackout periods. Insiders will also remain subject to the company's policy and the general rules on insider trading as well as other prohibitions on directors and officers disposing of shares within certain periods after acquisition.
ERHC currently holds a 100 percent interest in Block BDS-2008 in Southern Chad and a carried 35 percent interest in Block 11A in Northwestern Kenya. The Company also has offshore interests in the São Tomé and Príncipe Exclusive Economic Zone (EEZ) and the Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ).
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.