ERHE news released on newswires
ERHC Energy Releases Q&A With Vice President Corporate Development
(Market Wire 05/08 09:45:27)
HOUSTON, TX -- (MARKET WIRE) -- 05/08/08 -- ERHC Energy Inc. (OTCBB: ERHE), an American
company with valuable oil and gas assets in the highly prospective Gulf of
Guinea, today released the following interview with David Bovell, vice
president corporate development with ERHC. The discussion covered issues
related to Mr. Bovell's responsibilities, including expanding the Company's
assets through acquisitions and exploring various stock exchange listing
alternatives.
Q: What do you see as the primary roles and responsibilities coming into
that new position?
I see them as three-fold: First is to list a subsidiary of ERHC Energy Inc.
on the Alternative Investment Market (AIM) of the London Stock Exchange.
The second function for the short- or medium-term is to help to expand the
company's assets. Initiating and managing the search process, reviewing and
quantifying the applicable opportunities, then assisting management to come
to a conclusion. The third function is to enhance shareholder value and to
assist the company in realizing shareholder value through corporate
communications and doing deals that achieve positive financial results.
Q: Explain the rationale for listing a subsidiary on the AIM exchange.
The idea would be to create a brand new company, an ERHC subsidiary, that
would be incorporated in an advantageous tax environment. The company would
initially be 100 percent owned by ERHC Energy Inc. directly or through its
wholly owned Cayman holding company. We would then list that new company
on the AIM. We will be creating a separate asset pool for the company. In
due course, we would seek to raise money on the London Stock Exchange so
that we could invest in assets that were appropriate in that part of the
world.
Q: What impact would that have on ERHC Inc.'s assets in the Gulf of Guinea?
None. ERHC Energy Inc. would have its core, directly-owned assets in West
Africa and elsewhere. It would also have a large percentage of the
U.K.-listed company, which would have substantial assets of its own. There
would be a common management team that would be managing both, which can
create synergies. Accessing the additional pool of capital through the AIM,
we can achieve a higher number than if you had just done everything through
the U.S. company.
Q: What is the benefit of today's shareholders of the scenario you're
describing regarding the U.K.-listed Company?
It gives us access to another capital pool and should enhance value for
today's shareholders. It would enable us to do transactions that we
otherwise would not be able to do because we would be capital constrained
over here.
Q: Do you see ERHC Energy Inc. continuing to be listed on the
Over-the-Counter Bulletin Board?
In the next 12 to 18 months I anticipate ERHC Energy Inc. should be in a
position to move from the OTC. Either the AMEX or NASDAQ would be a better
place to be than the OTC.
Q: You've been associated with the company since early 2007. What have you
done for ERHC as a consultant in that time?
Basically, I have been looking at merger and acquisition opportunities for
the company and advising the Company on its listing options, as far as the
European markets are concerned.
Q: What attracted you to ERHC as an outsider?
As a consultant, the reason I was attracted to ERHC was that the company
had potential. I've since learned a lot about ERHC's opportunities that
has reinforced my initial views. The primary factor was seeing that there
is a real opportunity for the company to grow from an investor's point of
view.
Q: When you say that ERHC had potential, can you expand on that?
ERHC looked like a company that was undervalued but had great potential.
Those are the types of opportunities we looked for.
Q: Some people might say that's still a good description for where ERHC is
today.
That situation is going to change and together with Peter and the existing
management team, we are going to change it. The board has made it clear
that this is what they want and the shareholders seem to be enthused by
that.
Q: Would you say that ERHC's Gulf of Guinea assets serve as the foundation
to build upon?
Exactly. The core value of the company lies in the Gulf of Guinea, which is
going to be the major driver and at the moment it is the foundation of the
company's valuation. In order to realize the value of the Gulf of Guinea
opportunities, there are things we need to do in the interim. That is to
diversify and use the company's expertise to tap into other opportunities
that will deliver in an earlier timeframe.
Q: What business do you think ERHC is in?
We are an energy investment company. ERHC has a technical expertise, but
that expertise won't extend to being an operator. It will extend to being
able to understand an investment opportunity from a technical standpoint
and then to realize value by putting money into the right projects.
Q: What is the area of focus of your attention?
The initial area of focus will be Africa and Europe right up to the borders
of Russia. Does that mean that it will be the sole source of my focus? No.
We will pay attention to North America as well.
Q: Do you continue to see West Africa and the Gulf of Guinea being an area
of emphasis?
Yes. There are some serious opportunities there. With the contacts we have,
we have an ability to get into them expeditiously before anybody else
drives the price up.
Q: What haven't I touched on that you think we should cover?
The only way you can enhance shareholder value sustainably is to go out
there and give the investing public a sense of where the company is and
where it's going and the potential benefits of investing in the company. So
we will spend a fair amount of time on that as well, because enhanced
shareholder value is something the board, management and all the
shareholders would like to see.
About ERHC Energy
ERHC Energy Inc. is a publicly traded American company with valuable oil
and gas assets in the in the highly prospective Gulf of Guinea. ERHC is
committed to creating and delivering significant value for its
shareholders, investors, and employees; sustainable and profitable growth
through risk balanced smart exploration, cost efficient development and
high margin production. For more information, visit www.erhc.com.
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.
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Contact:
Dan Keeney, APR
DPK Public Relations
832-467-2904
Email Contact
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