ERHC Energy Inc. Announces Initial Plans for Chadian Exploration
HOUSTON, Aug 18, 2011 - ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in West Africa, has announced further details regarding its Chadian exploration program. In July, ERHC signed a production sharing contract (PSC) on three oil blocks in the Republic of Chad, covering a 100 percent interest in BDS 2008 and the Manga block, and a 50 percent interest in Chari-Ouest 3.
ERHC's Chad exploration program will cover an eight year period and includes a two-well commitment. The exploration program is divided into three phases with the initial phase devoted primarily to geological and geophysical (G&G) studies. The G&G work will take the exploratory process from the generation and gathering of all requisite technical data to the interpretation and analysis that will inform specific drilling locations. As is usual with PSCs, ERHC and the Chadian authorities will agree on a specific work program and corresponding budget annually.
"Upon finishing the synthesis of initial technical data received from the Chadian authorities and putting in place requisite management structures and arrangements, we will begin the important work of talking to service companies toward the first steps of the G&G work," said Peter Ntephe, ERHC's President/CEO. "This will be done in tandem with discussions regarding potential operating and consortium partners."
ERHC also addressed its equity stake in Exile Resources, the Canadian junior. ERHC holds 7.35% of Exile whose assets include a carried interest in Nigeria's Akepo field. Exile is currently in reverse takeover talks with Oando Plc, the Johannesburg and Lagos listed integrated energy group. ERHC stated that together with its advisers, it will monitor the proposed Oando-Exile transaction closely in the coming weeks with a view to acting as appropriate to enhance value for ERHC's shareholders.
ERHC further notified its shareholders it was exploring opportunities on producing and near producing assets in Nigeria. The company has entered into "positive" talks with the Imo State government of Nigeria to work with the government to bring marginal fields in the State to production. Imo State is one of Nigeria's oil producing states and one of the earliest places where oil operations were established in Nigeria.
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 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.