ERHC Energy Inc (ERHE)

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Addax Petroleum Acquires Equity Position in Highly Prospective Exploration Block Thursday , March 16, 2006 10:47 ET
CALGARY, Canada, Mar 16, 2006 (PR Newswire Europe via COMTEX) -- NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA OR JAPAN

Addax Petroleum Corporation ("Addax Petroleum") announces that it has together with its co-venturers signed a Production Sharing Contract ("PSC") with the Nigeria/Sao Tome Joint Development Authority ("JDA") relating to Block 2 of the Nigeria/Sao Tome Joint Development Zone ("JDZ") and that it is now entitled to a 14.33 per cent participation interest in Block 2 of the Nigeria/Sao Tome Joint Development Zone ("JDZ") pursuant to a participation agreement with ERHC Energy Incorporated ("ERHC") entered into on 2nd March 2006. Addax Petroleum also signed a joint operating agreement among the Block 2 co-venturers where Sinopec is the designated Operator.

Block 2 - Addax Petroleum: 14.33 per cent

Addax Petroleum's Block 2 entitlement is pursuant to:

- Block 2 PSC signed today with the JDA under which Addax Petroleum is obligated to pay a signature bonus of US$8.28 million and its share of a minimum committed work program of one (1) exploration well or a minimum expenditure of US$28 million, and

- a Participation Agreement with ERHC entered into on 2nd March 2005 under which Addax Petroleum became entitled to a 14.33 per cent participating interest for an obligation to pay US$6.8 million and a commitment to carry the costs associated with an ERHC interest of 7.33 per cent in Block 2.

The JDZ is located approximately 180 kilometres offshore Nigeria and is adjacent to areas where several large petroleum discoveries have been made. The JDZ was established in 2001 following the ratification of a formal bilateral treaty between Nigeria and the island nation of Sao Tome and Principe. The JDZ is administered by the JDA.

Block 2 covers a gross area of 692 square kilometres (170,993 acres). The water depth in Block 2 ranges from approximately 1,300 to 1,900 meters. Seismic data acquired over Block 2 is presently being analyzed to delineate potential drilling locations.

In commenting on the signing of the PSC Jean Claude Gandur, Chief Executive Officer of Addax Petroleum said, "With the completion of the acquisition of a equity position in a third JDZ Block, Addax Petroleum has achieved its goal of establishing a significant position in this highly prospective exploration area. We believe these acquisitions offer exciting opportunities to the Company and its shareholders".

About Addax Petroleum:

Addax Petroleum is an international oil and gas exploration and production company focused on Africa and the Middle East. Addax Petroleum is the largest independent oil producer in Nigeria and has increased its crude oil production from an average of 8,800 barrels per day for 1998 to an average to date of approximately 78,000 barrels per day in 2006. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.

This announcement does not constitute an offer of, or the solicitation of an offer to buy or subscribe for, common shares of Addax Petroleum to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful and, in particular, is not for release, publication or distribution in or into the United States, Australia or Japan.

The offer and sale of the common shares has not been and will not be registered under the US Securities Act of 1933, as amended, (the "Securities Act") and such shares may not be offered or sold in the United States unless registered under the Securities Act or an exemption from such registration is available. No public offering of common shares of Addax Petroleum is being made in the United States.

Certain statements in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements.

For further information: please contact: Mr. Patrick Spollen, Investor
Relations, Tel.: [phone], [e-mail]; Mr.
Mac Penney, Press Relations, Tel.: [phone], [e-mail];
Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: [phone],
[e-mail]

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