ERHC Energy Inc (ERHE)

[RUBY1100]

These investigations could also result in:


· third party claims against us, which may include claims for special, indirect, derivative or consequential damages;

· damage to our business, operations and reputation;

· loss of, or adverse effect on, cash flow, assets, goodwill, operations and financial condition, business, prospects, profits or business value;

· adverse consequences on our ability to obtain or continue financing for current or future projects; and/or

· claims by directors, officers, employees, affiliates, advisors, attorneys, agents, debt holders or other interest holders or constituents of ERHC.


Continuing negative publicity arising out of these investigations could also adversely affect our business and prospects in the commercial marketplace. In addition, these investigations have resulted in increased expenses to ERHC, including substantial legal fees and the diversion of management’s attention from our operations and other activities. If we incur costs or losses as a result of these matters, we may not have the liquidity or funds to address those costs or losses, in which case such costs or losses could have a material adverse effect on our business, prospects, operations, financial condition and cash flow.