If you look at the outlined paragraph from the July 10 shareholder update it says that part of the proceeds of the convertible notes will be used to fund the company's work program in Chad. You will probably say that there are no guarantees on how the funds will be used but the gravity/magnetic survey is about to get started and I am sure Bridgeport expects to get paid.
ERHC Energy Inc. Releases Shareholder Update
Concludes Final Terms for PSC with São Tomé and Príncipe National Petroleum Agency
HOUSTON, July 10, 2014 – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued an update on the Company's progress.
ERHC Shareholders:
ERHC is pleased to present highlights of the Company's recent progress.
São Tomé and Príncipe Exclusive Economic Zone (EEZ) Block 11
• Last week, ERHC President and CEO Peter Ntephe participated in ceremonies commemorating the 10th anniversary of the National Petroleum Agency of São Tomé and Príncipe (ANP-STP), during which it was announced that ERHC and ANP-STP have concluded the final terms for the Production Sharing Contract for EEZ Block 11.
• The PSC contains three exploration phases spread over an eight-year period. The work program in the first 4-year phase commits ERHC to purchase and re-process existing data and then carry out an aeromagnetic survey over the Block. ERHC is also committed to acquiring 2,500 kms of 2D seismic data during the first phase.
• If, after the completion of Phase 1, ERHC chooses to continue its exploration work program, Phases 2 and 3 will last two years each with a well commitment during each phase.
• As was the case in Kenya and earlier in the Joint Development Zone, management's intention is to bring a technically and financially capable operating partner onboard. The Company's discussions continue with several international oil companies about partnerships in EEZ Block 11. Some of those discussions are on the possibility of a 'right-to-earn' partnership where the operator commits to carrying only one aspect of the work program in return for a pre-determined interest in the PSC if the results of that aspect convince the operator to commit to the rest of the work program.
• The PSC for EEZ Block 11 will become effective in due course following the receipt of certain legislative and administrative approvals and the official Portuguese translation of the PSC.
• The Company has posted a presentation Mr. Ntephe delivered at the ceremony at http://erhc.com/presentations/. It provides an extensive overview of the prospectivity of EEZ Block 11, including evidence of what the Company's technical team believes could be a high quantity of hydrocarbon resources.
"Everyone familiar with our story, going all the way back to ERHC's pioneering exclusive agreement with the government of Sao Tome and Principe in 1997, understands how momentous this achievement is," said Dr. Ntephe. "We thank the government and the people of São Tomé and Príncipe, and we are looking forward to starting exploration work in the EEZ."
Republic of Kenya Block 11A
• The 2D seismic program covering approximately 1,000 line kilometers on Block 11A is nearing completion. BGP, the international seismic company, is carrying out the survey on behalf of the CEPSA and ERHC partnership on the Block.
• Based on analysis of the 2D seismic data combined with data from an airborne Full Tensor Gravity Gradiometry (FTG) survey conducted earlier, ERHC and the Block operator, CEPSA, will determine whether to acquire 3D seismic or proceed directly to drilling.
• Upon completion of the 2D seismic program, CEPSA and ERHC will have satisfied the minimum work program requirements for the initial two-year exploration period under terms of the Block 11A Production Sharing Contract.
"Results to date from the 2D seismic have been encouraging and we are very proud that every step of the first phase of our exploration work program has gone precisely as planned," said Dr. Ntephe.
Republic of Chad Block BDS 2008
• ERHC is in active discussions with potential partners who may be interested in farming into Block BDS 2008, which helps to spread the risk of exploration and is an important component in the Company's fundraising strategy.
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• Additionally, ERHC is currently issuing a series of convertible notes as part of its previously announced comprehensive fundraising program. Proceeds from the issue are being applied to funding the Company's exploration work program in Chad, among other obligations.
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• As announced earlier, ERHC has awarded a contract for acquisition, processing and interpretation of gravity/magnetic data of BDS 2008 in Chad to Bridgeporth Ltd.
• The agreement calls for Bridgeporth to fly 4,720 line kilometers over BDS 2008.
• The administrative approvals necessary for Bridgeporth to begin work are currently being pursued.
Oando Energy Resources Investment
• ERHC holds a small stake in Oando Energy Resources (TSX:OER) as a result of a strategic investment in Exile Resources, which was later acquired by OER.
• Management is closely monitoring the Company's holding following consent of the Minister of Petroleum in Nigeria for OER's acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips.
• It is possible that if completed, the acquisition may have a positive impact on OER's market valuation and, therefore, ERHC's holding.
• You can learn more about Oando Energy Resources at http://www.oandoplc.com.
If you have questions, please reference the Company's SEC filings, which are available at http://erhc.com/secfilings/ or contact Daniel Keeney, ERHC's investor relations representative, at dan@dpkpr.com.
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 stockholders, 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.
Cautionary Statement
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 stockholders' 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.
Contact: Dan Keeney, APR
DPK Public Relations
832-467-2904
dan@dpkpr.com
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