HOUSTON, July 2, 2012 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued the following update on Company activities from Peter Ntephe, chief executive officer.
To ERHC Shareholders:
On behalf of the entire ERHC Energy team, I want to wish you a happy Fourth of July holiday. Our business continues on many fronts and I am pleased to update the investment community and other interested parties on the Company's recent progress.
Growth Strategy
The third quarter of ERHC's financial year has just ended. Within that quarter, we advanced our business development in Africa to the point once again where we appear to be on the cusp of the allocation of exciting new acreages. We expect to have more information about these activities in the next two weeks.
Republic of Chad
During the quarter, we have engaged extensively with the Chadian Ministry of Petroleum and the national oil company, SHT. We have agreed upon the majority of administrative processes and permits necessary for the commencement of our exploration program in Chad, and we expect important announcements in that regard in the next few weeks. The focus of the first 18 months of the work program will be to carry out an environmental impact assessment (EIA), gravity and magnetic studies and seismic work. ERHC is currently reviewing expressions of interest from qualified contracting companies to carry out these tasks.
ERHC has 100 percent of the interest in the Chadian Blocks BDS 2008 and Manga. The Company also has a 100 percent interest in half of the Chari-Ouest III Block. As we stated earlier, ERHC's initial concentration will be on the BDS 2008 and Chari-Ouest III Blocks.
Sao Tomé and Principe Exclusive Economic Zone (EEZ)
ERHC holds a 100 percent working interest in each of EEZ Blocks 4 and 11. Negotiations on a Production Sharing Contract (PSC) between ERHC and the National Petroleum Agency of Sao Tomé and Principe (ANP-STP) continue to make positive progress. We had a far-reaching round of negotiations at the beginning of June 2012 with the ANP-STP, during which we reached consensus on the most significant terms of the PSC. Given the progress made so far, we continue to expect to finalize a PSC in respect of the EEZ before the end of the year.
Joint Development Zone (JDZ)
Discussions continue between the Joint Development Authority and the parties, including ERHC, that hold interests in JDZ Blocks 2, 3 and 4. The meetings with the JDA are aimed at reaching a definitive agreement on how to proceed with the next stage of exploration in the Blocks following the expiration of Exploration Phase I in March.
When a decision is made, ERHC will notify shareholders.
Thank you all for your continued interest in ERHC and your trust.
If you have questions, please ask the Company directly through its investor relations representative, Dan Keeney (214.432.7556 or dan@dpkpr.com).
Sincerely,
Peter Ntephe
Chief Executive 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 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 Chad, the JDZ and the Exclusive Economic Zone of Sao Tomé and Principe, 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.
The ERHC Energy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11579