ERHC Increases Stake in Exile Resources
HOUSTON, July 20, 2011 – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in West Africa, today announced it has increased its stake in Exile Resources (www.exileresources.com), a Canadian independent, to approximately 7.35 percent. Exile trades on the Toronto Stock Exchange’s Venture Exchange under the trading symbol ERI.
“While talk of a takeover approach is premature at this stage, ERHC’s intention is to gain the ability to participate in decision-making and explore synergistic partnerships that would be value-enhancing to our respective shareholders,” said ERHC President and CEO Peter Ntephe. “ERHC is particularly interested in Exile’s carried interest in the Akepo field in the Niger Delta, which is expected to begin producing later this year or early in the next.”
The Akepo field is located in the shallow waters of the southeastern area of Nigeria in OML 90.Exile Resources has 10 percent equity and up to a 17.5% economic interest in the field, with Oando Petroleum and Exploration Company carrying its costs. Sogenal Ltd Oil and Gas Company is the operator of the field.
The Akepo-1STdiscovery is expected to produce between 2,500 and 3,000 barrels of oil per day when production begins. According to an Appraisal Report as of December 31, 2010 on the Akepo Field prepared byDeGolyer and MacNaughton Canada Limited, the estimate of net reserves ascribed to Exile are: 39Mbbl light crude and 22MMcf of natural gas on a proved reserves basis; 239Mbbl light crude and 179MMcf of natural gas on a total proved plus probable reserves; and 835Mbbl light crude and 669MMcf of natural gas proved plus probable plus possible reserves.
Earlier this month, ERHC signed a production sharing contract with the Republic of Chad on three oil blocks. The new interests include 100 percent of Block BDS 2008 and Manga, and a 50 percent interest in Chari-Ouest III. ERHC has released the sizes of each of the three blocks, noting that the new interests roughly double the Company’s exploration acreages and establish the Company as one of the largest holders of acreages among the independents operating in Africa:
- Chari-Ouest III: 4,500 square km, equal to 1,111,974 acres
- Manga: 6,477 square km, equal to 1,600,501 acres
- BDS 2008: 16,360 square km, equal to 4,042,644 acres
ERHC also holds working interests in six Blocks in the Nigeria-São Tomé & Príncipe Joint Development Zone (JDZ), including JDZ Blocks 2, 3 and 4 which are operated by ERHC’s technical partners Sinopec Corporation and Addax Petroleum. Furthermore, ERHC holds 100 percent of Blocks 4 and 11 of the São Tomé & Príncipe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two other EEZ Blocks.
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in West Africa 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 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 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.