Contact Information: Contact: Dan Keeney, APR DPK Public Relations 832-467-2904
ERHC Energy Inc. Interim CEO Issues Update for Shareholders
| Source: ERHC Energy
HOUSTON, TX--(Marketwire - September 24, 2007) - The following update on Company activities was
issued by Nicolae Luca, interim chief executive officer of ERHC Energy Inc.
(OTCBB : ERHE ), prior to the market open on Monday, September 24, 2007.
"To ERHC Shareholders:
"I am pleased once again to provide the September 2007 update on the recent
progress of ERHC Energy Inc.
"If you were not able to participate in our recent conference call, I hope
you had an opportunity to listen to a replay. Corporate Secretary Peter
Ntephe did an admirable job of briefly summarizing ERHC's financial
position and its ongoing operations. It was also enlightening to hear from
shareholders about their interests and concerns. As Mr. Ntephe described,
we intend to offer similar opportunities for investors to ask questions in
the future.
"We are pleased to report the resolution of our negotiations with Godsonic
Oil Company Limited regarding its interest in Joint Development Zone Block
4. As stated in our latest quarterly disclosure, we took action on behalf
of our consortium to reclaim Godsonic's 9.0 percent share of JDZ Block 4
because Godsonic failed to meet certain obligations. Our consortium partner
in JDZ Block 4, Addax Petroleum (Nigeria Offshore 2) Limited, claims
entitlement under the existing agreements to 7.2 percent out of the
recovered 9 percent, leaving 1.8 percent remaining with ERHC. If finalized,
this would increase ERHC's share of JDZ Block 4 from 17.7 percent to 19.5
percent. ERHC and Addax are currently exploring mutual recourse to
arbitration or mediation, under amicability, to resolve whether or not
additional consideration is due to ERHC from Addax for the 7.2 percent
claimed by Addax under the terms of the existing agreements. We believe
that the relationship between the two companies remains as good as ever.
"Progress continues toward eventual exploration in several JDZ Blocks in
which ERHC has a stake. As a carried interest partner in each of JDZ Blocks
2, 3 and 4, ERHC is required to let the operator of each Block make
announcements regarding when and where drilling will commence. ERHC Vice
President Technical, Jim Ledbetter, is helping to evaluate initial
exploration well locations in JDZ Blocks 2, 3 and 4 and we expect to reach
agreement on specific locations with the Joint Development Authority and
the consortium partners in each of the Blocks in approximately the next six
months.
"Additionally, after the operators of each JDZ Block complete their review
and approval of geological and operational efficiencies, we expect their
decisions about drilling schedules at specific locations. It is important
to keep in mind that the timeframes for drilling at various locations in
all three JDZ Blocks will be based on their evaluations of cost-efficiency
and not necessarily to prioritize the highest potential exploration
locations.
"We are very proud that ERHC has signed on as a sponsor of Nigeria Oil &
Gas 2008. The conference, scheduled from February 18-21, 2008, is the
premier event on the Nigerian Oil & Gas calendar and is expected to attract
more than 4,000 participants, including more than 600 senior delegates.
ERHC representatives attended Nigeria Oil & Gas 2007 and were impressed
with the quality of the programs and exhibitors, which contributed to our
decision to sign on as a sponsor for next year's conference. Our
sponsorship of Nigeria Oil & Gas 2008 is an example of the Company's
efforts to raise awareness about our ongoing operations and the progress
being made toward eventual drilling in the JDZ.
"Another element of our effort to showcase ERHC Energy's commitment to
contributing positively to the quality of life in the communities in which
we operate, is the implementation of a community outreach program in our
host communities. Our first initiative was a visit by ERHC Corporate
Secretary Peter Ntephe and the Company's special counsel in Nigeria, Steve
Ahaneku, to the Jabi Orphanage Home, in Abuja, Nigeria. ERHC made a small
contribution during the visit to help support the orphanage, which takes in
abandoned children. It currently is home to 35 youngsters ranging in age
from a few weeks to five years old. You can view photographs from the visit
at www.erhc.com.
"ERHC's community outreach program is an important part of an integrated
program to be more visibly involved with the communities in which we
operate and to illustrate the positive things the Company is doing. The
program will continue to build momentum with a planned trip by management
representatives to Sao Tome and Principe in the fall.
"We have heard from a number of shareholders who are excited about
attending ERHC's annual shareholders meeting. While we do not yet have
details finalized on the date and location, we can tell you that the
meeting will be held in Houston, Texas. We expect to provide the formal
notice and documentation to shareholders in time for those coming from out
of town to make travel arrangements.
"Finally, we would like to clarify that ERHC has agreed to pay its
consortium partners in JDZ Blocks 2, 3 and 4 up to 100 percent of the
allocation of cost oil plus up to 50 percent of the allocation of profit
oil until all carried costs are recovered, subject to certain conditions.
ERHC's Web site has been updated to reflect this clarification.
"ERHC Energy remains focused on building positive momentum and values your
ongoing trust and support. The management and board look forward to getting
together with you in due course at the shareholders meeting."
Sincerely,
Nicolae Luca
Acting Chief Executive Officer
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused
on growth through high impact exploration in the highly prospective Gulf of
Guinea 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; sustainable and profitable growth
through risk balanced smart exploration, cost efficient development and
high margin production.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Such statements
include, but are not limited to, 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 forward-looking statements. Each forward-looking statement
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 forward-looking statement is
based.