ERHC Energy Inc. Signs Letter of Intent to Farm-Out a Portion of Its Interest in Kenya Exploration Block
May 06 2013 - 8:27AM
ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company
with oil and gas assets in Sub-Saharan Africa, announced today that
it has signed a letter of intent with an integrated international
oil and gas company to farm-out part of the Company's interest in
Kenya Block 11A.
The Company announced that its potential partner is a renowned
multinational operator with exploration and production interests
spread across several continents. The parties will now proceed to
negotiate the definitive terms for a farm-out. Any agreement
reached will be subject to the approvals of the respective boards
and of the Government of Kenya.
In July 2012, ERHC signed a production sharing contract (PSC)
with the Kenyan Government on Block 11A, an oil and gas exploration
Block in northwestern Kenya. The Block is situated on the border of
South Sudan to the north, Block 11B and Lake Turkana to the east
and near Kenya's border with Uganda to the west. It encompasses
11,950 square kilometers or 2.95 million acres.
Until a definitive farm-out agreement is entered into and
approved, ERHC continues to operate Kenya Block 11A. ERHC's work
program under the PSC is continuing apace. The Company is currently
reviewing bids from several service companies for process
management and execution of a Full Tensor Gravity Gradiometry (FTG)
survey of the Block. The FTG survey is an airborne survey that aids
significantly in the structural mapping of prospective hydrocarbon
basins. It has been used successfully in Africa and contributed to
recent oil discoveries in Uganda and Kenya.
Kenya is at the intersection of two major rift systems - the
Cretaceous Central African rift system and the Tertiary East Africa
rift system. ERHC plans to pursue a rift margin play in Block 11A
similar to those that led to recent major discoveries in East
Africa.
In addition to its oil and gas exploration interests in the
Republic of Kenya, the Company holds interests in the Republic of
Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and
the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).
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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