ERHC Energy Inc. Board Adopts New Committee Charters, Approves Management Recommendation to Reformulate Business Plan
Management meets with leaders of Joint Development Authority to reaffirm commitment
HOUSTON, Aug. 27, 2007 – ERHC Energy Inc. (OTCBB: ERHE.OB), an independent oil and gas company, today announced actions taken by its board of directors at its August meeting in Nigeria.
The ERHC board of directors approved revisions to the Board Committee Charters for ERHC Energy’s Governance and Nominating Committee, and Compensation Committee. The revised Charters, adopted voluntarily by ERHC’s board, subscribe to the NASDAQ Stock Market LLC standards of independence for independent directors. Independent directors serving on the Compensation Committee will, in addition, continue to be required to meet the standards of the relevant Internal Revenue Service and Securities and Exchange Commission rules.
Acting Chief Executive Officer Nicolae Luca explained that the board of directors of ERHC will evaluate future candidates for positions on the board to determine whether they satisfy these independence standards.
“We believe that independent directors play a crucial role in ensuring that the board of directors carries out its responsibilities in a manner consistent with its duties to shareholders,” said Mr. Luca. “In coordination with the adoption of these revisions to the Committee Charters, efforts are underway to recruit three additional board members.”
ERHC’s board also approved a new Charter for the Audit Committee, as well as Corporate Governance Guidelines to supplement the Board Committee Charters and the Company’s corporate governance policies.
Additionally, the board approved management’s recommendation to reformulate the Company’s business plan. The reformulated plan will permit ERHC’s management to expand the Company’s business focus beyond the Gulf of Guinea. Under Mr. Luca’s leadership during the past year, ERHC’s management has reaffirmed the Company’s rights in the Nigeria-Sao Tome & Principe Joint Development Zone (JDZ), strengthened relationships with governments and regulators in the region, stabilized the Company’s finances and put strict controls in place to keep expenses in check.
In coordination with the board meeting, ERHC’s management met with leaders of the Joint Development Authority (JDA), which oversees activities in the JDZ. During informal discussions with the JDA Chairman Ado Wanka at the JDA’s offices in Abuja, Nigeria, ERHC’s representatives reiterated the Company’s commitment, in conjunction with its technical partners, to fulfill its obligations in terms of exploration and production activities and community relations initiatives. ERHC representatives left with an expectation of the JDA’s continuing cooperation with ERHC and other holders of rights in the JDZ. ERHC holds rights to participate in exploration and production activities in six of the JDZ Blocks.
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About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in the highly prospective Gulf of Guinea 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.
Safe Harbor Statement
This press release of ERHC Energy Inc. (the “Company”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements concerning the Company’s future growth, operating milestones, drilling operations, business plans, prospects, investment opportunities, activities in the JDZ, corporate governance, cash position, financial position and financing plans, 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 the JDZ and the exclusive territorial waters of Sao Tome 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, compliance with governmental laws and 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 forward-looking statements. Each forward-looking statement 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 forward-looking statement is based.