ERHC Energy Inc (ERHE)

[Julius Erving]

Doc,

We disclosed what was discovered. Biogenic gas was found. If something else was discovered, we would have disclosed it, but it wasn’t so we didn’t. As I first explained well over a year ago, it would be highly uncommon for companies to detail all the things that were not discovered in exploratory drilling.

I believe Peter has explained that ERHC abides by its contractual and regulatory obligations to allow the operator to be the source of information about drilling. When we have made disclosures about drilling in our Blocks (which we have) we have done so with the authorization of the operators, as required. In your JDZ Block 1 example, the operator has consistently been the source of information about drilling as far as I know. Afren is not the first to disclose an oil discovery. And there is no reason to believe that Afren disclosed the information you cited without first gaining authorization to do so.

Another consideration that some fail to recognize is that ERHC has special incentive – currently valued in the tens of millions of dollars and potentially many times higher than that in the future -- to comply by the letter of the agreements it has in the JDZ: its costs are carried through to production. The Company’s priority has been to protect its assets and therefore, complying with contractual and regulatory requirements is the prudent course. Regardless, ERHC has disclosed drilling results in JDZ Blocks 2, 3 and 4 with the authorization of the operators to do so. We have consistently been the only source of information about drilling outcomes in our JDZ Blocks.

Sincerely,

Daniel Keeney, APR
DPK Public Relations

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