ERHC Energy Inc. Describes Analysis of Seismic Data at RedChip Conference
Potential Recoverable Oil Reserves Estimated at 5 Billion Barrels in JDZ Blocks 2, 3 and 4
SAN FRANCISCO, June 5, 2008 - ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with valuable oil and gas assets in the highly prospective Gulf of Guinea off the coast of central West Africa, discussed a block-by-block analysis of three Joint Development Zone (JDZ) Blocks in a presentation at the RedChip Small-Cap Investor Conference in San Francisco. WesternGeco's interpretation of seismic data estimates the combined recoverable reserves potential of JDZ Blocks 2, 3 and 4 could total more than 5 billion barrels of oil (P50), prior to deductions.
The report was prepared for ERHC by WesternGeco in 2003 using reservoir parameters similar to those known from nearby fields in Nigeria and Equatorial Guinea. Since then, it has informed the Company's decision-making and strategy.
The report estimated the following:
- JDZ Block 2, in which ERHC has a 22 percent interest, has recoverable reserves potential of 2.63 billion barrels.
- JDZ Block 3, in which ERHC has a 10 percent interest, has recoverable reserves potential of more than 600 million barrels.
- The recoverable reserves potential of JDZ Block 4, in which ERHC has a 26.7* percent interest, is estimated to be 1.86 billion barrels.
The estimate of "recoverable reserves potential" is based on the report, which interpreted and mapped seismic data, highlighted prospectivity and calculated volumetrics. It did not include any attempt to comply with any SEC definition of reserves. ERHC's percentage interest determines the amount of oil to which it will be entitled from any proven reserve, after deductions from the reserves for cost, taxes, royalties and the Joint Development Authority's share.
"We are looking forward to the start of exploratory drilling," said Acting President and Chief Executive Officer Peter Ntephe. "At the same time, we are pushing forward aggressively with other initiatives to accelerate growth by duplicating what we have been able to accomplish in the Gulf of Guinea."
In his presentation to the RedChip Small-Cap Investor Conference, Mr. Ntephe outlined ERHC's plan to establish or acquire a subsidiary that will be listed on the Alternative Investments Market of the London Stock Exchange. That subsidiary will invest in assets that leverage the Company's strengths in central West Africa. Investors are invited to listen to a replay of his presentation at www.redchip.com.
About ERHC Energy
ERHC Energy Inc. is a publicly traded American company with valuable oil and gas assets in the in the highly prospective Gulf of Guinea. ERHC is committed to creating and delivering significant value for its shareholders, investors, and employees; sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production. For more information, visit www.erhc.com.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms on this Web site, such as "recoverable reserves potential," that the SEC's guidelines generally prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K. You may review our filing with the SEC at the following Web site: www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000799235.
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.
*Subject to a possible transfer of 7.2% to Addax Petroleum related to a matter currently being negotiated.