ERHC Energy Inc. Completes Farm-Out to CEPSA
February 10 2014 - 9:17AM
ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company
with oil and gas assets in Sub-Saharan Africa, is pleased to
announce the completion of its farm-out agreement with CEPSA
(Compañía Española de Petróleos, S.A.U.), an international
integrated oil and gas company. The completion of the farm-out
follows the receipt of final regulatory approvals from the Kenyan
Government.
CEPSA has acquired a 55 percent stake in Block 11A and will
operate the Block in exchange for certain considerations. ERHC
retains a 35 percent interest in Block 11A.
"This is an excellent time for the entry of a renowned operator
like CEPSA," said ERHC President and CEO Peter Ntephe. "We have
negotiated a mutually beneficial agreement that advances Block 11A
toward drilling and enhances shareholder value."
The parties will proceed with a previously announced 2D seismic
survey of at least 1,000 line kilometers of Block 11A in
northwestern Kenya. The survey, which is expected to commence this
spring, will be conducted by BGP Kenya Limited, one of the world's
leading geophysical service companies.
Block 11A is an oil and gas exploration Block in northwestern
Kenya awarded to ERHC last year. Encompassing 11,950 square
kilometers or 2.95 million acres, 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.
In addition to its oil and gas exploration interests in the
Republic of Kenya, ERHC 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).
ERHC expects to file its next quarterly report on Form 10-Q
within the next two weeks.
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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