ERHC Energy Inc. Chief Operating Officer Updates Shareholders on Company Progress
(Market Wire 09/01 08:44:43)
HOUSTON, TX -- (Marketwire) -- 09/01/09 -- 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 issued the following
update on Company activities from Peter Ntephe, chief operating officer.
To ERHC Shareholders:
I am happy to update the ERHC Energy family on the company's recent
progress.
First of all, many congratulations are due this Company and its technical
partners, Sinopec Corporation ("Sinopec") and Addax Petroleum Corporation
("Addax") in the Nigeria-São Tomé and Príncipe Joint Development Zone
(JDZ). Drilling is now underway in JDZ Blocks 2 and 4 in which ERHC has
interests. This is an exciting time for the ERHC family. It has taken
years of hard work and determination to get to this point and we are all
proud of what this Company has achieved.
It is remarkable that exploration in the JDZ is currently being driven by
ERHC's technical partners. In addition, ERHC has interests in more of the
JDZ Blocks than any other company. We are therefore a premier player in
the region where our role has historically been and continues to be
fundamental.
The start of exploratory drilling in the Blocks is the third step in a five
step process towards realizing the Company's assets in those Blocks. We are
therefore more than halfway there already! The process started with
acquisition of the Company's oil and gas assets. In step two, geologists
and engineers used cutting edge technologies to evaluate prospects.
The current exploration phase involves testing the scientific conclusions
and gathering additional information. If all goes as expected, exploration
will be followed by full field development activities to establish the
subsea production infrastructure. And finally, thereafter, we will be ready
for the ultimate step: oil and gas production to realize the value of our
assets.
As you can imagine, each step takes considerable expertise and the
resulting production, if in commercial quantities, may considerably enhance
shareholder value. It is, however, important for everyone associated with
ERHC to understand that each step takes time, financial resources and work.
No guarantees can be given at this stage that there will be production in
commercial quantities.
Exploratory Drilling
In JDZ Block 2, in which ERHC has a 22 percent interest, Sinopec has
commenced drilling the Bomu-1 prospect with the Sedco-702 semisubmersible
rig. Due to the capacity of the Sedco-702, we expect it will take
approximately 45 days to drill the Bomu-1 Prospect, although the actual
timing is dependent on many factors, such as drilling penetration rate,
fluids encountered, borehole stability and equipment maintenance, among
others.
Also last week, Addax began drilling the Kina prospect in JDZ Block 4, in
which ERHC has a 19.5 percent interest. Addax is using the highly
sophisticated Deepwater Pathfinder drill ship. We estimate drilling the
initial well will take approximately 30 days.
A commercial oil discovery is certainly the desired outcome. Over the
coming four months, a total of five wells are expected to be drilled. Each
well will be evaluated using several standard oilfield methods and the rock
properties and reservoir fluids will be measured and evaluated.
The information from these wells will assist in understanding the geology
and hydrocarbon potential of the various prospects being drilled. More
importantly, it will help the exploration team to understand the
prospectivity of the entire area.
The drilling later this fall in the Lemba prospect in JDZ Block 3 will also
provide critical information. Last week, Addax announced it had acquired an
additional 51 percent stake in JDZ Block 3 from Anadarko and will assume
the operatorship of the Block. This is great news for ERHC as it
accelerates the drilling timeline for Block 3 and further integrates the
drilling campaign between the various Blocks in which the Company has
interests.
It is anticipated that the Deepwater Pathfinder will drill the Lemba
prospect in Block 3 in late-September or early-October this year after
drilling the Kina prospect in Block 2.
We are working in what we expect to be a large oil field encompassing many
prospects throughout the JDZ. Whether one prospect proves to be a major or
modest discovery is less important than what we learn about prospectivity
throughout the wells being drilled. While it may be tempting to score each
individual well as pass/fail, this is not how exploration is done.
Reliable Information Sources
Analyzing drilling results and incorporating them into the relevant
geologic and fluid models takes time. Moving from field appraisal and
development and onto production takes time. There are no shortcuts. As has
been the case in the past, we will continue to work diligently at it all.
There are certainly exciting times ahead but please be cautious about
putting undue reliance on rumors and speculation in the coming months as
these important processes are undertaken. As has been the practice in the
JDZ, accurate, material information on the progress in the JDZ Blocks will
emanate from the operators or the JDA. ERHC will publish such information
in a timely manner in accordance with our contractual and regulatory
obligations.
To make it easier to access information about the Company, ERHC recently
upgraded its Web site. I encourage you to visit www.erhc.com and see our
new and more vibrant look that is designed to make it easier to see all
that is happening in these exciting times.
The start of exploratory drilling in two of our JDZ Blocks is yet another
significant milestone achieved in the remarkable journey that ERHC has been
on. The Company continues to progress toward its vision. We eagerly
anticipate the accomplishment of more objectives on our JDZ assets in the
coming months.
Our shareholders have been remarkably supportive and committed through the
journey so far. I thank you all for your continued interest in ERHC and
your trust. If you have questions, please submit them to Dan Keeney, our
investor relations representative, at dan@dpkpr.com.
Sincerely,
Peter Ntephe
Chief Operating Officer
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.
This document 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 Sao Tome and Principe, 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 document. 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:
Daniel Keeney, APR
DPK Public Relations
832-467-2904
Email Contact
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