Interim CEO Updates ERHC Energy Inc. Shareholders
(Market Wire 03/27 12:41:28)
HOUSTON, TX -- (MARKET WIRE) -- 03/27/08 -- The following update on Company activities was
issued by Nicolae Luca, interim chief executive officer of ERHC Energy Inc.
(OTCBB: ERHE), on Thursday, March 27, 2008.
"To ERHC Shareholders:
"I am pleased once again to provide an update on the recent progress of
ERHC Energy Inc.
"Our team continues to make progress toward exploration of some of our
assets in the Gulf of Guinea, off the coast of West Africa. ERHC Energy's
assets in the Gulf of Guinea include interests in the deepwater Joint
Development Zone (JDZ) as well as interests in the territorial waters of
São Tomé and Príncipe known as the Exclusive Economic Zone (EEZ). To date,
attention has been focused on JDZ Blocks 2, 3 and 4.
"JDZ Block 4 is most likely to be the first of our exploratory drilling
locations. ERHC has a 26.7 percent (1) participating interest in JDZ Block
4. Our technical partner, Addax Petroleum, an experienced exploration and
production company with significant interests throughout the JDZ, is the
operator of JDZ Block 4. Addax executives have indicated that drilling
could commence as early as the fourth quarter of this year. The Joint
Development Authority (JDA), which was set up by the governments of Nigeria
and São Tomé and Príncipe to administer the JDZ, has approved the first
drilling location, the Kina Prospect.
"Initial exploration of JDZ Block 2, in which ERHC Energy has a 22 percent
participating interest, is currently expected to commence in 2009. Sinopec
Corp. is the operator of JDZ Block 2. As we have stated previously, Sinopec
and Addax Petroleum jointly contracted the Aban Abraham deepwater
drillship, which continues to undergo refurbishment in Singapore.
Discussions continue regarding the specific drilling location in JDZ Block
2.
"In JDZ Block 3, in which ERHC Energy has a 10 percent participating
interest, the JDA has approved the first well location at what is known as
the Lemba Prospect. Anadarko is the operator of JDZ Block 3 and has not
disclosed a potential timeline for exploration.
"If you have not recently visited the ERHC Web site, I encourage you to
review the latest seismic images that have been disclosed by our technical
partner, Addax Petroleum, at www.erhc.com/jdzprospectivity. The images
showcase what geologists and engineers, using advanced technologies, have
determined lies beneath 5,000 feet of water and sand on the bottom of the
Gulf of Guinea.
"ERHC remains interested in diversifying its asset and investment
portfolio. As reported several months ago, ERHC's board of directors
approved the reformulation of ERHC's business plan and expansion of
strategic focus in August 2007. Greater flexibility was therefore granted
to the Company's leadership, letting us explore opportunities beyond the
Gulf of Guinea. Most recently, after due consideration and technical
appraisal of a proposal to acquire a significant stake in a company
pursuing mining investments in South East Asia, ERHC decided not to pursue
the proposal. Going forward, ERHC will continue to consider opportunities
in mining and minerals in addition to possible acquisitions in oil and gas.
"Plans are taking shape for ERHC Energy's annual shareholders' meeting on
April 22, 2008. The requisite notice of meeting and proxy statement were
filed with the U.S. Securities and Exchange Commission on March 17, 2008.
The documentation has been mailed to all shareholders of record as of that
date. The meeting will be held at the Renaissance Houston Hotel in Houston,
Texas. We hope to see you there.
"ERHC Energy's annual report for 2007 has been completed and is also being
sent to shareholders of record as of March 17, 2008. The annual report
extends the Company's theme, 'Deep Opportunity.' The annual report
continues our telling of the ERHC story and we encourage you to pass it
along to others.
"Speaking of telling the ERHC story, the ERHC Energy staffers were doing a
lot of that at Nigeria Oil & Gas 2008, a major conference and exhibition in
Abuja, Nigeria where ERHC had a significant presence as sponsor and
exhibitor. Some photographs from the event have been posted on our Web site
and if you have not already seen them, please do so. According to
conference organizers, the event attracted nearly 4,400 visitors,
approximately 1,100 conference delegates and more than 100 journalists. It
was an enormous success. Stories featuring ERHC Energy have already
appeared in a number of trade publications.
"And finally, we have received a number of questions from shareholders
regarding the significance of a photograph used in various marketing
materials and posted online in February. As we have consistently stated,
ERHC's management continues to explore options, proposals and prospects
that might advance the interests of the Company and our shareholders. It is
important to note, however, that ERHC Energy has not signed any letters of
intent (LOIs), memoranda of understanding, undertakings or any other form
of legal obligation related to any information or transaction that might
appear to be depicted in the photograph. In the event that the ERHC
leadership signs or enters into any LOIs or agreements related or giving
rise to any material transaction, we will publicly disclose that
information by the requisite means of dissemination.
"On behalf of the entire ERHC Energy family, thank you for your ongoing
trust and support."
Sincerely,
Nicolae Luca
Acting Chief Executive Officer
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 shareholders' meetings, response to the Senate
Subcommittee investigation, developments in the SEC investigation of the
Company and related proceedings, 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 the JDZ and the
exclusive territorial waters 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.
(1) Subject to a possible transfer of 7.2 percent to Addax Petroleum on
parameters that are currently being determined.
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Contact:
Dan Keeney, APR
DPK Public Relations
832-467-2904
Email Contact
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