ERHC Energy Inc. Takes Legal Action to Protect Its Rights
(Market Wire 11/03 14:40:27)
Suit Seeks to Stop Tampering With ERHC's Rights in Joint Development Zone Blocks 5 and 6
ABUJA, NIGERIA -- (Marketwire) -- 11/03/08 -- 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 West Africa, today announced it has filed
suit to stop any tampering with its rights in Joint Development Zone (JDZ)
Blocks 5 and 6.
The lawsuit comes after the JDA and the Joint Ministerial Counsel (JMC) of
the Nigeria-São Tomé and Príncipe JDZ failed to give a satisfactory
response to ERHC's letters seeking clarification on the Company's rights in
JDZ Blocks 5 and 6. ERHC sent the letters following media reports stating
that the JMC had approved of ERHC's removal from the Blocks. The Company
was awarded a 15 percent working interest in each of the Blocks in a 2005
bid/licensing round conducted by the JDA, following the exercise by ERHC of
preferential rights in the Blocks as guaranteed by contractual and treaty
arrangements.
The lawsuit, filed in the Federal High Court in the Nigerian capital Abuja,
seeks a declaration that ERHC's working interests in JDZ Blocks 5 and 6 are
intact. It further seeks an injunction restraining the JDA from tampering
with ERHC's rights contrary to the terms of existing contracts. Agreements
between ERHC and the JDA indicate that any dispute between the parties is
to be referred to arbitration under English law. ERHC's lawsuit also asks
the court to require the JDA to submit to such arbitration.
"We are taking decisive action to secure and protect the rights of ERHC and
its shareholders from unlawful tampering," said ERHC Chief Operating
Officer Peter Ntephe. "We continue to have the utmost respect for the JDA
and hope that this is a misunderstanding that can be resolved quickly in
accordance with the legal agreements."
Mr. Ntephe noted that the suit does not concern any of ERHC's other
interests in the JDZ and in the São Tomé & Príncipe Exclusive Economic
Zone. ERHC and its consortium partners are currently working hard to
prepare for the start of drilling in at least one of the other blocks in
which ERHC has rights in the JDZ.
ERHC is committed to exploiting its rights and meeting its contractual
obligations in the JDZ. The Company has interests in six of the nine JDZ
Blocks. 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.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Contact:
Dan Keeney, APR
DPK Public Relations
832-467-2904
Email Contact
S.IW ERHE EU.IW EUCO.IW EUOG.IW EUPI.IW EUUT.IW FS.IW FSCI.IW FSPF.IW FSVC.IW GO.IW GOIN.IW PS.IW PSLE.IW
AI
