ERHC Energy Inc. Distributes Shares From Rights Offering, Continues Fundraising From Other Sources
May 01 2013 - 7:01AM
ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company
with oil and gas assets in Sub-Saharan Africa, today announced the
completion of the Company's rights offering, which was the first
phase of a comprehensive funding strategy. The Company also
announced the start of the next phase of fundraising with the
expected filing of a Registration Statement on Form S-1 with the
Securities and Exchange Commission (SEC) to facilitate the issuance
of shares to new investors.
ERHC having terminated the escrow on the proceeds received under
its rights offering, the subscription agent has distributed or
credited shares of the Company's common stock purchased in the
rights offering through the Depository Trust Company to those
stockholders who exercised their basic and oversubscription rights.
Basic subscription rights to purchase 21,594,206 shares of common
stock were exercised. Additionally, all oversubscription requests,
totaling 3,376,200 shares, have been fully satisfied in the rights
offering.
With the subsequent filing of the S-1 registration statement,
ERHC intends to pursue other fundraising possibilities. The options
include registered direct offerings to new investors and
convertible notes and other debt instruments. Concurrently, ERHC is
continuing to work to farm-out a portion of the Company's assets in
Kenya, Chad and the São Tomé and Príncipe Exclusive Economic Zone
(EEZ) to spread the risk.
Net proceeds to the Company from the rights offering and other
fundraising activities will fund specific exploration and
development activities in the Republics of Chad and Kenya, as well
as general corporate purposes and working capital needs. ERHC's
2013 approved work plan for Kenya Block 11A involves a Full Tensor
Gravity (FTG) survey to help identify potential leads and
prospects. A similar FTG survey is also planned in Chad.
Speaking last week at the 19th Western Africa Oil, Gas &
Energy Conference 2013, held in Namibia, ERHC President and CEO
Peter Ntephe detailed the Company's plans to pursue rift margin
plays in Kenya and Chad similar to those that yielded significant
discoveries to the east of ERHC's Block 11A in northwest Kenya.
In addition to Kenya Block 11A, ERHC's onshore assets include
three oil blocks in Chad – Block BDS 2008, Manga and the northern
half of Chari-Ouest Block 3. The Company's offshore assets include
a 100 percent working interest in Blocks 4 and 11 of the São Tomé
and Príncipe EEZ free of signature bonuses, as well as interests in
six of the nine Blocks in the Nigeria - São Tomé & Principe
Joint Development Zone.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy shares of the Company's common
stock and there shall not be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities
laws of any such state.
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas
company focused on growth through high impact exploration in Africa
and the development of undeveloped and marginal oil and gas fields.
ERHC is committed to creating and delivering significant value for
its stockholders, 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 stockholders'
meetings 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 Kenya, Chad, the JDZ
and the Exclusive Economic Zone 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.
CONTACT: Dan Keeney, APR
DPK Public Relations
832-467-2904
dan@dpkpr.com
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