London Court of International Arbitration Clarifies JDZ Block 4 Interests
(Market Wire 07/15 16:20:54)
Tribunal Awards Addax Petroleum 7.2 Percent, ERHC 1.8 Percent
LONDON -- (MARKET WIRE) -- 07/15/08 -- ERHC Energy Inc. (OTCBB: ERHE), a publicly traded
American company with oil and gas assets in the highly prospective Gulf of
Guinea off the coast of central West Africa, today announced a resolution
to its arbitration with Addax Petroleum Corporation regarding a nine
percent portion of Joint Development Zone (JDZ) Block 4. A three-member
tribunal of the London Court of International Arbitration (LCIA) confirmed
that under the Participation Agreement between the parties no further
consideration is payable by Addax Petroleum to ERHC for Addax Petroleum's
7.2 percent share of the nine percent. ERHC is entitled to the remaining
1.8 percent out of the nine percent.
The nine percent became available for distribution between ERHC and Addax
Petroleum after it was recovered from another consortium partner that had
failed to meet certain obligations.
"We are pleased to have the distribution of the nine percent resolved so
that we and our consortium partner can focus entirely on starting drilling
in JDZ Block 4 as quickly as possible," said ERHC Chief Operating Officer
Peter Ntephe. "Throughout this process, ERHC and Addax Petroleum have
maintained their close working relationship."
The combined share of JDZ Block 4 held by ERHC and Addax Petroleum under
the Participation Agreement is 60 percent. Following the ruling by the LCIA
tribunal, ERHC's share of JDZ Block 4 increased from 17.7 percent to 19.5
percent. Addax Petroleum, the operator of the Block, saw its share of JDZ
Block 4 increase from 38.3 percent to 45.5 percent, which includes a five
percent interest acquired independently by Addax from a third party.
ERHC Energy has interests in six of the nine Blocks in the offshore JDZ
between Nigeria and the Democratic Republic of São Tomé & Príncipe. The
Company has additional interests in the territorial waters of Democratic
Republic of São Tomé & Príncipe known as the Exclusive Economic Zone (EEZ).
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused
on growth through high impact exploration in the highly prospective Gulf of
Guinea and the development of undeveloped and marginal oil and gas fields.
ERHC is committed to creating and delivering significant value for its
shareholders, investors and employees, and to sustainable and profitable
growth through risk balanced smart exploration, cost efficient development
and high margin production. For more information, visit www.erhc.com.
Cautionary Statement
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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