ERHC Energy Inc. Issues September 2015 Shareholder Update
HOUSTON, September 17, 2015 – 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 from Dr. Peter Ntephe, president and chief executive officer.
To ERHC Shareholders:
I am pleased to update the investment community and other interested parties on ERHC Energy Inc.
1. Oil & Gas Industry
- The external environment continues to be testing, with international benchmark Brent crude still hovering below the $50 mark after hitting a six-year low close to $42 last month.
- The rate of growth of oil supplies continues to outstrip the rate of growth of demand, and the oil exploration industry is in a state of flux.
- Junior exploration companies, including ERHC, have found it quite challenging to raise exploration funding through traditional and preferable means, such as farmouts, in the current environment.
2. Corporate Development
- As previously disclosed, ERHC and its advisers have been examining certain capital restructuring options.
- ERHC is currently finalizing proposals with advisers for capital restructuring to firm up the balance sheet and position the company for new investment.
- New investment may include mergers and acquisitions.
- ERHC's expected catalysts for value enhancement remain our exploration assets in Kenya, Chad, EEZ and the JDZ.
3. Kenya Block 11A
- The contracting parties plan to spud the first well at the Tarach-1 prospect by the end of the first quarter of 2016.
- The Tarach-1 prospect is situated in the central part of the Tarach basin. It is a three-way structural closure trapping against a North - South trending normal fault.
- ERHC holds a 35 percent interest in Block 11A.
- The mean estimate of oil prospective unrisked resources for the prospect is 65 million barrels.
- Mean unrisked prospective resources of all prospects and leads in Block 11A totals 645 million barrels.
4. Chad Block BDS 2008
- ERHC's exploration team continues to accept tender proposals for a 2-D seismic acquisition program.
- The exploration team is also seeking certain preliminary approvals, including environmental permits, from and through the Chadian Ministry of Petroleum, Mines and Energy relating to the proposed technical scope and territorial coverage of the seismic acquisition program.
- ERHC holds a 100 percent interest in BDS 2008.
- Based on the result of an aero-magnetic and gravity survey that ERHC completed over the Block, total Petroleum Initially in Place (PIIP) for one of ERHC's two focus areas has been estimated at 278 million barrels (with a high case of 876 million barrels).
5. São Tomé and Príncipe Exclusive Economic Zone (EEZ)
- ERHC is in advanced negotiations with an International Operating Company (IOC) for a transaction on EEZ Block 11 following an earlier disclosed Memorandum of Understanding (MOU).
- Given the external environment, the date of conclusion of a possible transaction is not yet certain.
6. Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ)
- An initiative led by the Nigeria - São Tomé and Príncipe Joint Development Authority (JDA) to integrate well data and seismic on the JDZ Blocks in which drilling has occurred so far is now completed.
- The integration initiative includes JDZ Blocks 2, 3 and 4 in which ERHC has an interest.
- The JDA also has agreed with Petroleum Geo-Services (PGS) for the general marketing and promotion of the data and related studies to a worldwide client pool.
- The JDA, in partnership with PGS, presented the data at the Petroleum Exploration Society of Great Britain (PESGB) Conference on Africa Conference in London earlier this month, and ERHC had a representative in attendance.
- The JDA is establishing a data review facility to enable prospective new operators and partners review the data.
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.