ERHC Energy Inc. Pushing to Complete PSC Negotiations for EEZ Blocks
CEO Peter Ntephe says Company is confident it can finalize the few remaining clauses quickly
HOUSTON, February 11, 2013 – In a wide ranging interview, ERHC Energy Inc. (OTCBB: ERHE) President and CEO Peter Ntephe confirmed the Company’s intention to complete negotiations quickly on a Production Sharing Contract covering its oil and gas blocks in the São Tomé and Príncipe Exclusive Economic Zone (EEZ). ERHC, a publicly traded American company with oil and gas assets in Sub-Saharan Africa, has 100 percent working interest in EEZ Blocks 4 and 11 free of signature bonuses.
Acknowledging that that the remaining clauses are being finalized between ERHC and São Tomé and Príncipe National Petroleum Agency (STP-ANP), Mr. Ntephe said the two sides are ‘working hard’ to finish the PSC.
“We are confident that we can soon have a final document that works for both sides,” said Mr. Ntephe in an interview at Winter NAPE 2013, the world's largest E&P (upstream) expo, which attracted approximately 20,000 attendees and exhibitors to highlight producing properties and prospects from around the world, capital formation and services and technologies. The interview is posted online at http://erhc.com/articles/nape-interview/.
Seismic data for EEZ Blocks 4 and 11 contain highly prospective structures and they are situated close to the proven hydrocarbon systems in the adjacent territorial waters of Gabon, Equatorial Guinea, Nigeria and Cameroon.
“As we continue the discussions with potential partners for the EEZ, we are forging ahead with the PSC,” Mr. Ntephe said. “We will not delay the PSC negotiations. ERHC has no signature bonus to pay on its blocks so if we did sign the PSC before getting a big partner, we could start the preliminary geophysical and geological work ourselves.”
ERHC’s analysis to date suggests its EEZ Blocks have all the necessary components of a successful petroleum system. EEZ Block 4, which totals 5,808 square km, is situated directly east of the island of Príncipe. The northeastern area near EEZ Block 4 contains a large graben structure, which is bound by the Kribi Fracture Zone. EEZ Block 11, which totals 8,941 square km, is situated directly east of the island of São Tomé and abuts the territorial waters of Gabon. The Southern area, where EEZ Block 11 is situated, contains parts of the Ascension and Fang Fracture Zones.
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.