HOUSTON, Sept. 27, 2012 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today released additional details of its planned exploration work programs in the Republics of Kenya and Chad. ERHC's immediate goal is to quickly identify specific leads and prospects upon which an aggressive drilling campaign can then be carried out. The announcement comes as the Company intensifies fund raising for its exploration programs in highly prospective acreages in East, Central and West Africa.
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, a broad depression measuring approximately 110 km from east to west. The proximity and in-trend relationship between the Lotikipi plain and the Abu Gabra Rift basins of southern Sudan – established petroleum provinces – suggest high oil and gas prospectivity. The initial exploration period is two years, during which ERHC's exploration plan calls for the following specific action items:
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, which in 2010 had an average daily production of 122,500 barrels of crude oil per day. Based on technical assessments made by the operator of an adjacent block, ERHC's preliminary projections suggest the likelihood of at least three prospects with a reasonable chance of success on ERHC's blocks. The Company's preliminary projections of the prospects suggest the combined mean potential may be up to 63 MMBOE, with upside potential of more than 332 MMBOE. ERHC's planned work program in 2013 and 2014 includes the following:
Subject to the availability of financing and favorable outcomes on the geological and geophysical work outlined, ERHC intends to fast-track exploration in both countries so as to satisfy drilling obligations as quickly as possible. ERHC has a minimum commitment of one well each in Kenya and Chad with options for further drilling during the terms of the PSCs.
ERHC plans to finance its work programs from equity issuances to existing and new shareholders as well as from appropriate debt instruments and other arrangements. The Company is also currently in discussion with several prospective partners with a view to sharing risk and expenditure on the Chad and Kenya work programs.
In addition to its interests in Kenya and Chad, ERHC holds 100 percent working interests in Blocks 4 and 11 in the Sao Tome and Principe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two more Blocks. ERHC expects to complete PSC negotiations with the government of Sao Tome and Principe before the end of 2012.
ERHC also holds working interests in Nigeria-Sao Tome and Principe Joint Development Zone (JDZ) Blocks 2, 3, 4, 5, 6 and 9.
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.
The ERHC Energy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11579
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.
Dan Keeney, APR DPK Public Relations 832-467-2904
ERHC Energy Inc.
Houston, Texas, UNITED STATES
Dan Keeney, APR DPK Public Relations 832-467-2904
Day's Range: 0.09-0.09
Previous Close: 0.09
Market Cap: 69.75M
Day's Volume: 62,800
ERHC Energy Inc. Logo