ERHC Energy Inc (ERHE)

[RUBY1100]

ERHC sails into black in JDZ

By Upstream staff


Houston-based ERHC Energy, which owns assets in the joint development zone (JDZ) off West Africa, saw full-year profits return to the black.

The company reported net income of $23.2 million in the fiscal year to 30 September 2006, back from a net loss of $11.3 million in 2005.

The company said the improvement was largely due to a $30.1 million net gain on the sale of interests in its blocks 2,3 and 4 in the JDX, shared by Nigeria and the island nation of Sao Tome.

However, the company still reported a net loss of $1 million in the fourth quarter of 2006, down from a net loss of $2.8 million in the same quarter of 2005.

The company has no producing assets and so reported no revenues.

ERHC holds exploration rights to six blocks in the JDZ. It has formed strategic partnerships in the area with Addax Petroleum and Sinopec.

The company's chairman is Nigerian businessman Emeka Offor.