HOUSTON, TX--(Marketwire - June 9, 2009) - ERHC Energy Inc. (
OTCBB:
ERHE), a publicly
traded American company with oil and gas assets in the highly prospective
Gulf of Guinea off the coast of West Africa, today issued the following
update on Company activities from Peter Ntephe, chief operating officer.
To ERHC Shareholders:
I am happy to update the ERHC Energy family on the company's recent
progress.
Development of our assets in the Joint Development Zone (JDZ) remains the
principal focus of this Company and we continue to concentrate our time,
energies and resources on accomplishing that objective.
This spring has been a very busy period in the JDZ filled with blockbuster
developments. We have been required by contract and regulation to keep a
lot of the detailed information on evolving plans in the JDZ confidential.
Only the operator and the Joint Development Authority (JDA) are allowed to
make initial announcements on such matters. They decide when the time is
right for relevant announcements. However, we have authorization to update
you broadly on what has been happening.
First, drilling is very close -- possibly less than six weeks away -- in
JDZ Block 2 in which ERHC holds a 22 percent interest. As previously
disclosed, the JDA has approved the Bomu-1 Prospect as the first drilling
location in Block 2. Based on the latest schedule, Sinopec might spud the
well as early as July.
Addax is the operator of JDZ Block 4 in which ERHC holds a 19.5 percent
interest. Addax currently plans to use the Deepwater Pathfinder to drill
three wells in Block 4, starting with the Kina-1 Prospect. The second and
third drilling locations will be determined based upon the Kina-1
exploration results. Addax expects to take possession of the Deepwater
Pathfinder early in the third quarter, possibly as early as July.
Also, in the past, we have highlighted the Aban Abraham deepwater drill
ship, so I wanted to update you on that as well. After enduring repeated
delays on the ship, Addax has announced that it has cancelled the contract
for the ship and it is no longer part of our plans for the JDZ.
There are also substantial and positive developments in JDZ Block 3 in
which ERHC holds a 10 percent interest. Current plans are to spud the Lemba
Prospect before the end of the third quarter. We expect significant
announcements from the operator of the Block shortly.
The pace of development in the three blocks justifies our strategy of
aligning with highly capable and experienced technical partners, Addax and
Sinopec, to whom a great deal of credit is due. We could not be happier
with the outcomes of their hard work and determination to make exploration
in the coming months a reality.
We are exploring possibilities for strategic alliances with our technical
partners on future initiatives in the JDZ and elsewhere. These discussions
are at a very early stage, but we are hopeful that we will be able to
extend upon our mutually beneficial partnerships.
A year ago we described our plan to independently grow the Company through
acquisitions. The credit crisis considerably constrained our ability to
secure funding for the planned acquisitions. The acquisitions were to be
funded mainly from sources other than the Company's current cash assets. We
have resumed work on the acquisitions aspect of the growth strategy,
looking at potential targets in North America and West Africa, but it is
important to understand that we continue to proceed cautiously.
Several shareholders have expressed their strong objection to any
acquisitions on the grounds that they will devalue the JDZ assets or weaken
the Company by depleting current cash reserves. Be assured that we do not
intend to jeopardize our financial position. Our approach to investment
continues to be prudent rather than cavalier. It is important to ensure at
all times that the Company's ability to meet operational commitments and
regulatory requirements are not adversely affected.
Growth through acquisitions is well advised. We are creating the
subsidiary structures necessary to keep those acquisitions separate from
the JDZ assets. While this has always been the intention, we hope that
specifying it clearly here will allay the fears of those shareholders who
oppose acquisitions because they do not want the JDZ assets to be thereby
'diluted' or 'devalued.'
As drilling gets closer, we are making plans to re-intensify delivery of
the ERHC message to the wider investment community. Vice President
Corporate Development, David Bovell, is slated to present tomorrow at the
Growth Company Investor Show in London. He will give an overview of the
Company's assets, the NSAI estimates of our prospective resources and the
revised growth strategy. We are tying revamp of market outreach to the
commencement of drilling in the JDZ so that the message we deliver has
greater potency and the resources committed to the effort are optimized.
These are exciting times for the ERHC Energy family, given the fast-paced
developments in the JDZ where our core assets are located. We are closer
than we have ever been to finally actualizing those assets after years of
hard work and perseverance. I thank you all for your continued interest in
the Company and your trust and support.
If you have questions, please submit them to Dan Keeney, our investor
relations representative, at
dan@dpkpr.com.
Sincerely,
Peter Ntephe
Chief Operating Officer
This document 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 Sao Tome and Principe, 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 document. 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.
Contact Information: Contact:
Daniel Keeney, APR
DPK Public Relations
832-467-2904