ERHC Energy Inc. Reports Fourth Quarter and Year End 2008 Financial Results
HOUSTON, December 15, 2008 – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, today announced its results for the fourth quarter and fiscal year ended September 30, 2008.
As of September 30, 2008, ERHC reported cash assets totaling $31,757,012.
During the three months ended September 30, 2008, ERHC had a net loss of $1,032,580, compared to a net loss of $203,037 for the three months ended September 30, 2007. General and administrative expenses during the fourth quarter totaled $1,285,062, compared to $1,377,372 during the same period in 2007, representing a reduction of nearly seven percent.
For the fiscal year ended September 30, 2008, ERHC had a net loss of $3,071,157, compared to a net loss of $1,756,904 in 2007. The increase in net loss was due primarily to the fact that the Company is now in a loss carry forward position and therefore has no remaining tax benefits from utilization of tax losses in 2008. For the year, general and administrative expenses fell to $4,249,572 compared with $4,954,848 in fiscal 2007. The primary reason for this 14 percent decrease in expenses is a reduction in legal and professional fees due to lower legal expenses.
“We are working to ensure our strategies going forward address ERHC’s top priorities, including protecting the Company’s assets in the Gulf of Guinea and preserving ERHC’s cash reserves,” said ERHC Chief Operating Officer Peter Ntephe.
ERHC Energy holds exploration rights in six JDZ blocks. Additionally, ERHC holds the right to receive up to two blocks of ERHC’s choice in Sao Tome’s Exclusive Economic Zone (EEZ) and holds the option to acquire up to 15 percent paid working interest in up to two additional blocks of ERHC’s choice in the EEZ.
A replay of the call will be available from Tuesday, December 16, 2008 at 10:00 a.m. Eastern Time through December 23, 2008 by dialing 800-642-1687 (domestic) or 706-645-9291 (international) and providing the following replay code: 77294003. In addition, the Webcast will be available for replay until January 16, 2009 by going to www.livemeeting.com/cc/erhcenergy/join and entering the Meeting ID 27Q94Z and Entry Code bhb3H:g.
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.
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, response to the Senate Subcommittee investigation, developments in the SEC investigation of the Company and related proceedings, 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 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.