ERHC Energy Inc. Releases Shareholder Update, Seeks Government Consent for Farm-Out Agreement for Kenya Block 11A
November 13 2013 - 7:01AM
ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company
with oil and gas assets in Sub-Saharan Africa, today issued an
update on the Company's progress.
ERHC Shareholders:
ERHC is pleased to present highlights of the Company's recent
progress.
Republic of Kenya Block 11A
- ERHC has concluded a farm-out agreement with a renowned
integrated oil and gas company.
- The farm-out agreement is subject to the consent of the
government of the Republic of Kenya.
- Under terms of the agreement, ERHC would transfer of a portion
of its interest in Kenya Block 11A as well as operatorship.
- The proposed farm-out agreement includes a carry and other
considerations.
- As required under the farm-out agreement, until government
consent is granted, details regarding the partner and terms will
remain confidential.
- Pending government consent to the farm-out agreement, ERHC
continues to operate Block 11A.
- Work is ready to commence on the airborne Full Tensor Gravity
Gradiometry (FTG) survey of Block 11A following the subcontractor's
completion of work on a neighboring block.
"This is an excellent time for the entry of a technically and
financially capable operating partner," said ERHC President and CEO
Peter Ntephe. "We have negotiated a mutually beneficial agreement
that advances ongoing exploration in Block 11A and enhances
shareholder value."
Republic of Chad Block BDS 2008
- A comprehensive Environmental Impact Assessment (EIA) of ERHC's
approved work program on Block BDS 2008 is nearing completion.
- The EIA is being conducted by ERHC's subcontractor ASAT
(Archeologie et Socio-Antropologie au Tchad) and is the necessary
first step in exploration.
- ERHC is currently accepting bids for an airborne FTG of its
BDS-2008 block which is the next step in the approved work
program.
- BDS 2008 overlies the Doseo Basin, which hosts much of Chad's
current oil production.
"We are pleased to be making progress with our exploration work
program in Chad," said Mr. Ntephe. "These are all necessary steps
toward eventual drilling."
São Tomé and Príncipe Exclusive Economic Zone (EEZ)
Blocks 4 and 11
- Both ERHC and the National Petroleum Agency of São Tomé and
Príncipe(ANP-STP) are conducting legal reviews of the draft
Production Sharing Contracts (PSCs) for EEZ Blocks 4 and 11, the
significant terms of which have been finalized by the parties.
- ERHC's and the ANP-STP's efforts to generate interest in the
EEZ as a whole have increased interest in ERHC's EEZ Blocks among
International Operating Companies (IOCs).
- ERHC is in discussions with several IOCs about possible
partnerships following the signing of the PSCs in Blocks 4 and
11.
"We are very happy that after many years of work, there is now
palpable momentum building toward exploration of the Zone – both in
our Blocks and in neighboring Blocks," said Mr. Ntephe.
Nigeria - São Tomé and Príncipe Joint Development Zone
(JDZ) Blocks 2, 3 and 4
- The Joint Development Authority (JDA), ERHC and other
contracting parties are continuing to review possible next
steps.
- One of the possibilities that the parties are collectively
examining is to bring in exploration companies to spread risk and
to reinterpret existing data with a fresh perspective and possibly
a fresh exploration strategy.
"Despite the unexpected outcomes of the initial drilling
campaign, we remain enthusiastic about the JDZ and believe that
taking a new mindset to the exploration effort would be a very
positive development for all involved," said Mr. Ntephe.
If you have questions, please reference the Company's SEC
filings, which are available at http://erhc.com/secfilings/ or
contact Daniel Keeney, ERHC's investor relations representative, at
dan@dpkpr.com.
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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