ERHC Energy Inc (ERHE)

[TOB]

ERHE has had a flurry of good news.

Executive Summary.

ERHC Energy Inc. Signs Exclusive Exploration Authorization on Oil Blocks in Chad

This formally recognizes the PSC between Chad and ERHC for its three huge and highly prospective exploration blocks.

"With the issuance of the EEA, ERHC can now commence its Chad exploration work program in earnest," said ERHC's President and CEO Peter Ntephe. "ERHC's goal is to advance quickly toward the identification of leads and prospects and thereafter to drill as quickly as the circumstances permit.

ERHC Energy Inc. Signs Production Sharing Contract on Oil Block in Northwest Kenya

"We are building on past successes and leveraging ERHC's unique advantages in Africa to dynamically grow our exploration acreages and build shareholder value," said ERHC President and CEO Peter Ntephe. "Competition for exploration acreages in Kenya is currently high and we are delighted that ERHC has been awarded the rights to explore one of the highly prospective Blocks. We look forward to working closely with the Government and people of Kenya on a mutually beneficial exploration program."

A planned oil pipeline may pass right through ERHC's Kenya block. A planned pipeline extension would run along the border with one of ERHC's huge Chad blocks where there have been several oil discoveries.

ERHE has the highest trading volume in 27 months, suggesting the market is waking up to these developments. It was up 100% from the 2012 low and hit the 52 week high. But the rally has paused at the break-out point.

ERHC's new Kenya blocks are in the vicinity and similar geology as Tullow's oil discovery which has raised interest in Kenya to a fever pitch. 45 of 46 exploration blocks are leased with the last one under agreement.

Africa oil farmed out two blocks in the vicinity of ERHC's block. They kept 50% interest in Block 9 and 20 in block 12A, received $35 million, and a carry up t0 $43.5 million.

Note that CPC spent a total of $42.76 million in Chad in the other half of ERHC's Southern block and made an oil discovery they expect to net $1.6 Billion in profit. Onshore exploration is much cheaper and faster than offshore deepwater.

We are awaiting the decision of the JDA regarding discussions on how to proceed in the JDZ. The JDA recently recalled the interest holders for an follow up meeting to clarity terms.

A journal reported the JDA is unhappy with Sinopec not releasing full drilling results. Which has curiosity raised as to what it means.

ERHE Rally ringing the bell?

So quite a bit of news and activity following up from the surprise announcement at the ASM a couple months ago that ERHC has received formal closure with full clearance from the SEC and DOJ. This greatly improves ERHC's ability to seek investment and partnerships, especially with U.S. and Western firms and will remove a major risk factor from future 10-K.