HOUSTON, Feb. 23, 2015 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCMKTS:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today announced that it has issued a convertible note for the principal amount of $250,000 to The Chrome Group. The note will bear interest at the rate of eight percent and have a 12-month tenure.
The Chrome Group is an international oil and gas conglomerate and a longstanding major shareholder of ERHC. ERHC will apply the proceeds of the note to the execution of its exploration work programs as well as for general administrative expenses.
In addition to the private placement of convertible notes, ERHC continues to pursue other fundraising sources, including new private-equity investment and farm-outs of its interests in production sharing contracts with the governments of Kenya, Chad and Sao Tome & Principe respectively.
ERHC holds a 100 percent interest in Block BDS 2008 in Chad and is currently planning a seismic acquisition program, having completed an aero-gravity and magnetic survey late last year with positive results. ERHC also holds a carried 35 percent interest in Block 11A in Northwestern Kenya, where drilling is expected during the first quarter of 2016. The Company's offshore interests include Block 11 in the São Tomé and Príncipe Exclusive Economic Zone (EEZ) in respect of which the Company signed a PSC in July last year.
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.