ERHC Energy Inc. Announces Production Sharing Contracts in JDZ Blocks 2, 3 and 4
Business Wire News Release
ERHE
ERHC ENERGY INC
HOUSTON, Mar 17, 2006
Walter Brandhuber, President and CEO, of ERHC Energy Inc. (OTCBB:ERHE) announced today that on March
14, 2006, a subsidiary of the Company entered into a production sharing contract with Addax Petroleum
(Nigeria Offshore 2) Limited ("Addax"), several oil and gas companies, and the Nigeria-Sao Tome and Principe
Joint Development Authority ("JDA"), to conduct petroleum operations in Block 4 of the Joint Development
Zone between Sao Tome & Principe and Nigeria ("JDZ"). Mr. Brandhuber also announced that on March 14,
2006, a subsidiary of the Company entered into a production sharing contract with Addax Petroleum
Resources Nigeria Limited ("Addax Sub"), several oil and gas companies, and the JDA, to conduct petroleum
operations in Block 3 of the JDZ, and on March 15, 2006, a subsidiary of the Company entered into a
production sharing contract with Sinopec International Petroleum Exploration and Production Corporation
Nigeria ("Sinopec"), Addax Energy Nigeria Limited ("Addax Ltd."), several oil and gas companies, and the JDA,
to conduct petroleum operations in Block 2 of the JDZ. Addax, Addax Sub, Sinopec and Addax Ltd. are
required to pay all of the Company's future costs in respect of all future petroleum operations in Blocks 2, 3
and 4 of the JDZ. They are entitled to the Company's share of cost oil until they recover the Company's costs.
The Company's CEO Walter C. Brandhuber commented by saying, "The entering into production sharing
contracts in Blocks 2, 3 and 4 of the JDZ represents an important step in our goal of commercializing the
Company's interests in the JDZ and increasing shareholder value. The Companies' interests in the JDZ
blocks represent the cornerstone for the Company's future growth strategy."
In November 2005, the Company entered into a participation agreement with Addax with respect to Block 4 of
the JDZ where Addax paid the Company $1.35 million, and will be required to pay an additional $16.65 million
on or before March 24, 2006. In February 2006, The Company entered into a participation agreement with
Addax Sub with respect to Block 3 where Addax Sub paid the Company $500,000, and will be required to pay
an additional $7 million on or before March 24, 2006. Further, on March 2, 2006, the Company entered into a
participation agreement with Sinopec and Addax Ltd. with respect to Block 2 where Sinopec will pay the
Company $13.6 million on or before March 25, 2006, and Addax Ltd. will pay the Company $6.8 million on or
before March 25, 2006.
The JDZ lies approximately 200 km. offshore Nigeria and is adjacent to areas offshore Nigeria where several
large petroleum discoveries have been made. The JDZ was established in 2001 following ratification of a
formal bilateral treaty between Nigeria and Sao Tome and Principe. The JDZ is administered by the Joint
Development Authority.
Safe Harbor Statement
his press release contains "forward-looking statements," including statements about ERHC Energy Inc.'s
future operating milestones, financing plans, as well as other matters that are not historical facts or
information. These forward-looking statements are based on management's current assumptions and
expectations and involve risks, uncertainties and other important factors, specifically including 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, that may cause the Company's actual results to be materially different from any
future results expressed or implied by such forward-looking statements. The Company undertakes no
obligation to update or revise any such forward-looking statements, whether as a result of new information,
future events or otherwise, nor is there any assurance that the contemplated financing will be effected,
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Business Wire News Release
ERHE
ERHC ENERGY INC
under the terms set forth herein or any other terms.
SOURCE: ERHC Energy Inc.
ERHC Energy Inc., Houston
Jane Barker, 713-626-4700
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