ERHC Energy Inc. Issues March 2017 Shareholder Update
HOUSTON, March 23, 2017 – ERHC Energy Inc. (OTCMKTS:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued the following update on Company activities.
- In the light of the current oil-price environment and continued constraints on funding for oil exploration activities, ERHC’s management and board continue working toward a strategic realignment of the Company.
- The Company’s new strategic priorities will include a focus on opportunities for cost-efficient entry into production and producing assets. This is in contrast to the pure exploration model which the Company previously ran.
- The new focus is intended to open up the Company to new streams and a wider range of financing.
- As a result, the Company is carrying out a comprehensive review of its legacy exploration assets with a view to deciding, on an asset-by-asset basis, the feasibility and desirability of retention within the new strategic focus. This review covers of course Kenya Block 11A, Chad Block BDS 2008 and the Gulf of Guinea interests.
- With regard to first steps in the drive towards assets at the other end of the E&P value chain, ERHC recently signed a Memorandum of Understanding with Starcrest Nigeria Energy Limited (“Starcrest”) as previously announced.
- Starcrest has a significant stake in Elcrest Exploration and Production Company Limited, the holder of 45 percent of Nigeria’s producing OML 40. Starcrest also holds directly OPL 291 and OPL 242 in Nigeria.
- ERHC is currently engaging with Starcrest towards the terms of a possible transaction between the two companies.
- In addition, ERHC is part of several consortia bidding for producing interests in West Africa with backing from financing partners.
- Newstar Oil and Gas, Inc, a wholly owned subsidiary of ERHC, has also been set up to acquire producing assets domestically.
- ERHC will be presenting at the 16th Africa Independents Forum in May 2017 in London. This is the premier international forum showcasing independents holding acreage and portfolio assets in Africa. Learn more at http://www.oilgas-events.com/Find-an-Event/Africa-Independents-Forum.
- ERHC has reduced costs across board. Investor relations and outreach have been affected but ERHC will endeavor to keep satisfying any mandatory regulatory requirements for disclosure, particularly to shareholders as whole.
- ERHC encourages shareholders and others to refer to quarterly and annual filings with the SEC, which can be found at http://erhc.com/secfilings/.
- We thank you for your continued interest in ERHC.
President and Chief Executive Officer
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.
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.
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