HOUSTON, Oct. 4, 2012 (GLOBE NEWSWIRE) -- The management and Board of ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today stated appreciation for the expressions of support by many of the Company's shareholders for a proposed intensification of the Company's fund raising activities. ERHC is seeking formal shareholder approval of an increase in the Company's authorized share capital as it raises funds for exploration programs in the Company's highly prospective acreages in East, Central and West Africa.
"We are enthused by the level of support so far from our shareholders and exhort those who haven't voted to do so in advance of the closure of voting and announcement of final tallies next week," said ERHC President and CEO Peter Ntephe. "Our ambitious exploration plans are intended to enhance shareholder value, an objective which we expect our shareholders will embrace."
Earlier this week, Chrome Oil Services Ltd. and Chrome Energy LLC, which beneficially own approximately 43 percent of ERHC Energy's outstanding common stock, announced their support for ERHC's shareholder proposal. The Company's management and Board have recommended an increase in the number of authorized shares of Common Stock from 950 million shares to three billion shares and to authorize the Company's Board to create and issue preferred stock.
The proposal is subject to approval by a Special Meeting of Shareholders of ERHC scheduled for Tuesday, October 9, 2012. The meeting will be held at 3:00 p.m. at the Renaissance Houston Hotel, 6 Greenway Plaza East, in Houston, Texas. Shareholders of record at the close of business on August 22, 2012 are entitled to vote their shares for or against the proposed amendments.
ERHC holds oil and gas exploration interests in the Republic of Kenya, the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ). In the Republic of Kenya, ERHC has 100 percent of the interest in Block 11A, which is in the vicinity of Block 10BB where significant oil discoveries have recently been announced. In the Republic of Chad, ERHC has 100 percent of the interest in BDS 2008 and Manga, and 100 percent interest in half of Chari-Ouest Block 3. In the EEZ, ERHC holds 100 percent working interests in Blocks 4 and 11 with an option to acquire up to 15 percent working interests in two more Blocks. In the JDZ, ERHC holds working interests in Blocks 2, 3, 4, 5, 6 and 9.
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 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.
The ERHC Energy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11579
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 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.