ERHC Energy Inc. Shareholders Approve Plan to Fund Accelerated African Oil Exploration Programs
HOUSTON, October 10, 2012 – Shareholders of ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, have voted overwhelmingly in favor of the Company’s proposals that will enable fund raising for oil and gas exploration in the Company’s highly prospective acreages in East, Central and West Africa. At a shareholders’ meeting held in Houston on October 9, 2012 to consider the proposals, ERHC’s management announced plans to raise up to $45 million for exploration work programs in Kenya’s Block 11A and Chad’s BDS 2008.
Shareholders approved a proposal to amend ERHC’s Restated Articles of Incorporation to increase the number of shares of common stock that the Company is authorized to issue by a vote of 511,885,807 (in favor) to 72,521,768 (against). Shareholders also voted to authorize ERHC’s Board to issue Preferred Stock by a vote of 341,858,523 (in favor) to 25,394,276 (against).
ERHC expects to begin exploration operations in Kenya’s Block 11A by the end of calendar year 2012. The main surface feature of Block 11A is the Lotikipi plain. The proximity and in-trend relationship between the Lotikipi plain and the Abu Gabra Rift basins of southern Sudan, which are established petroleum provinces, suggest high oil and gas prospectivity.
ERHC is planning for exploration operations to commence in Chad by early 2013. The Company plans to focus initially on its 100 percent interest in BDS 2008 which is on trend with the Doba Basin oilfield that holds significant discoveries and sources of current oil production in Chad.
“We are very excited that our shareholders have given us the financial flexibility needed to move our current assets forward and seize new opportunities that align with our ambitious growth plans,” said president and CEO Peter Ntephe. “We are proceeding quickly with fund raising for the aggressive work programs that we intend to roll out in Kenya and Chad.”
Management also announced plans to undertake a rights offering as part of the fund-raising strategy. The rights offering will give existing shareholders the right to purchase newly issued shares of common stock in proportion to their existing holding. Terms of a rights offering are expected before the end of the year. A rights offering gives shareholders the opportunity to participate fully in the Company’s growth while avoiding the dilutive effects of issuing additional shares.
In addition to its oil and gas exploration interests in the Republic of Kenya, the Republic of Chad, the Company holds interests in the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).
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 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 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.