On July 6, 2011, the Company announced that it had signed a Production Sharing Contract (PSC) on the three oil blocks with the Government of Chad. A PSC is an agreement that governs the relationship between ERHC (and any future joint-venture partners) and the Government of Chad in respect of exploration and production in the Blocks awarded to the Company. The initial period of exploration commenced on July 12, 2012 with the publication, in Chadian Government’s Gazette Principal, of the Exclusive Exploration Authorization, granted to ERHC by the Government of Chad.
During the quarter ended March 31, 2014, the Company received the arrêté (decree) of the President of Chad giving presidential seal of approval to the Company’s request to obtain oil exploration Block BDS 2008 and its voluntary relinquishment of the Manga and Chari-Ouest III Blocks.
ERHC continues to talk with potential farm-in partners. The next stage of exploration is a seismic survey on ERHC’s two focus areas. ERHC is exploring, as one of its funding options, the possibility of a right-to-earn partnership in exchange for seismic services. Based on the result of an aero-magnetic and gravity survey that ERHC completed over the Block, total Petroleum Initially in Place (PIIP) for one of ERHC's two focus areas has been estimated at 278 million barrels (with a high case of 876 million barrels). ERHC holds a 100 percent interest in BDS 2008.
Given the current environment and continued constraints on funding for oil exploration activities, one option we are exploring is the possibility of a right-to-earn partnership in exchange for seismic services. ERHC holds a 100 percent interest in BDS 2008.
ERHC's exploration focus is on Block BDS 2008 which measures 41,800 square kilometers or 10,329,000 acres. Within this block, two focus areas have been identified:
- East of and on trend with OPIC’s Benoy-1 margin discovery in the Doba basin.
ERHC’s exploration team has commenced planning toward 2-D seismic acquisition. The information gathered through an airborne gravity/magnetic survey of the Block in Southern Chad proved to be a significant improvement on current data resolution. ERHC's sub-contractor, Bridgeporth Ltd., a specialist geosciences company, completed the survey during the fourth quarter of 2014, confirming the preliminary leads and revealing additional targets. The main conclusions of the study are as follows:
a) The Graben edge is clearly visible in the southwest corner of the Bridgeporth survey.
b) The data can be used to target seismic acquisition over possible rift associated structures.
c) It appears that the Graben edge will enter into the ERHC block northeast of the Bridgeporth survey.
d) Regional profile data acquired by Bridgeporth suggests that the gravity low to the north of BDS 2008 could indeed be a rifted section.
e) The saddle feature in the west central portion of the Block should be investigated.
As the Company did with the JDZ and Kenya Block 11A, ERHC continues to explore a farm-out to spread risk. The Chad acreage is also within the scope of Deloitte Corporation Finance LLC (DCF)’s engagement and we continue to work with them to find suitable farm-out or joint venture partners.
In the spring of 2001, Sao Tome & Principe and Nigeria signed a treaty establishing a JDZ for the joint development of petroleum and other resources in the overlapping area of their respective maritime boundaries. The treaty also established an administrative body, the Joint Development Authority ("JDA"), to administer the treaty and all activities in the JDZ. Revenues derive
d from the JDZ will be shared 60:40 between the governments of Nigeria and Săo Tomé & Príncipe, respectively. The JDZ lies approximately 180 kilometers south of Nigeria, in the Gulf of Guinea, one of the most prolific hydrocarbon regions of the world.
In April 2003, the Company and STP entered into an Option Agreement (the "2003 Option Agreement") in which the Company relinquished significant prior legal rights and financial interests in the Joint Development Zone ("JDZ") in exchange for preferential exploration rights in the JDZ. Following the exercise of ERHC's rights as set forth in the 2003 Option Agreement, the JDA confirmed the award in 2004 of participating interests ("Original Participating Interest") in each of JDZ Blocks 2, 3, 4, 5, 6 and 9 of the JDZ during the 2004/5 licensing round conducted by the JDA. ERHC also jointly bid with internationally recognized technical partners for additional participating interests in the JDZ during the 2004/5 licensing round. As a result of the joint bid, ERHC won additional participating interests ("Joint Bid Participating Interest") in Blocks 2, 3 and 4. The following is a tabulation of ERHC's participating interests in the JDZ.
ERHC's Participating Agreements in the JDZ
The following are the particulars of the Participating Agreements by which ERHC assigned some of its participating interests in JDZ Blocks 2, 3 and 4 to technical partners so that the technical partners would operate the Blocks and carry ERHC's proportionate share of costs in the Blocks until production, if any, commenced from the Blocks:
Date of Participation
Agreement
|
Party(ies)
to the Participation Agreement
|
|
Participating
Interest(s)
Assigned
|
|
|
Participating
Interest Assigned
Price
|
|
|
|
|
|
|
|
|
|
JDZ Block 2 - Participation Agreement - ERHC Retained Interest of 22.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 2, 2006
|
Sinopec International Petroleum Exploration Production Co. Nigeria Ltd - a subsidiary of Sinopec International Petroleum and Production Corporation
|
|
|
28.67
|
%
|
|
$
|
13,600,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Addax Energy Nigeria Limited - an Addax Petroleum Corporation subsidiary
|
|
|
14.33
|
%
|
|
$
|
6,800,000
|
|
|
|
|
|
|
|
|
|
|
|
JDZ Block 3 - Participation Agreement - ERHC Retained Interest of 10.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 15, 2006
|
Addax Petroleum Resources Nigeria Limited - a subsidiary of Addax Petroleum Corporation
|
|
|
15.00
|
%
|
|
$
|
7,500,000
|
|
|
|
|
|
|
|
|
|
|
|
JDZ Block 4 - Participation Agreement - ERHC Retained Interest of 19.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 15, 2005
|
Addax Petroleum Nigeria (Offshore 2) Limited - a subsidiary of Addax Petroleum Corporation
|
|
|
40.50
|
%
|
|
$
|
18,000,000
|
|
Under the terms of the Participation Agreements Sinopec and Addax agreed to pay all of ERHC's future costs for petroleum operations ("the carried costs") in respect of ERHC's retained interests in the blocks. Additionally, Sinopec and Addax are entitled to 100% of ERHC's allocation of cost oil plus up to 50% of ERHC's allocation of profit oil from the retained interests on individual blocks until Sinopec and Addax Sub recover 100% of ERHC's carried costs.
On or about October 2, 2009, Sinopec International Petroleum Exploration and Production Corporation acquired all of the outstanding shares of Addax Petroleum Corporation.
ERHC's JDZ Acreage
ERHC has working interests in six of the nine Blocks in the JDZ, as follows:
|
●
|
JDZ Block 5: 15.0% (in arbitration)
|
|
●
|
JDZ Block 6: 15.0% (in arbitration)
|
The working interest percentages represent ERHC's share of all the hydrocarbon production from the blocks and obligates ERHC to pay a corresponding percentage of the costs of drilling, production and operating the blocks. Through Exploration Phase 1 in blocks 2, 3 and 4, these costs have been carried by the operators. The operators can only recover their costs by carrying ERHC until production whereupon the operators will recover their costs from production revenues.
In 2009, Sinopec and Addax, ERHC's technical partners and operators in Blocks 2, 3 and 4 undertook an exploratory drilling campaign across the three blocks that was completed in January 2010.
Biogenic gas was discovered in each block and discussions continue between the Joint Development Authority and the parties, including ERHC, that hold interests in JDZ Blocks 2, 3 and 4, regarding drilling results. The meetings with the JDA are aimed at reaching a definitive agreement on how to proceed with the next stage of exploration in the Blocks following the expiration of Exploration Phase I in March 2012.
JDZ Operations Update
The JDZ partnership is currently assessing the data for possible new exploration play concepts in this area. The Nigeria - Săo Tomé and Príncipe Joint Development Authority (JDA) co
ntinues to engage with the remaining JDZ contracting parties, including ERHC, on the way forward for further exploration.
SAO TOME AND PRINCIPE EXCLUSIVE ECONOMIC ZONE ("EEZ")
Overview of ERHC's EEZ Blocks
The Săo Tomé and Príncipe EEZ is delineated ove
r an expanse of waters offshore Sao Tome and Principe that covers approximately 160,000 square kilometers. In terms of hydrocarbon exploration and exploitation, the EEZ is a frontier region that sits south of the Niger Delta and west of the Gabon salt basin, retaining similarities with each of those prolific hydrocarbon regions. The regional seismic database comprises approximately 12,000 kilometers of seismic data. Interpretation of that seismic data shows numerous structures in the EEZ that have similar characteristics to known hydrocarbon accumulations in the area.
ERHC's Rights in the EEZ
Under a 2001 agreement with the Government of Sao Tome and Principe ("STP"), ERHC was vested with the rights to participate in exploration and production activities in the EEZ. These rights included (a) the right to receive up to 100% of two blocks of ERHC's choice and (b) the option to acquire up to a 15% paid working interest in each of two additional blocks of ERHC's choice in the EEZ. In 2010, ERHC exercised its rights to receive up to 100% of two blocks of ERHC's choice in the EEZ and was duly awarded Blocks 4 and 11 of the EEZ by the Government of STP.
EEZ Block 4 is 5,808 square kilometers, situated directly east of the island of Príncipe.
EEZ Block 11 total
s 8,941 square kilometers, situated directly east of the island of Săo Tomé and abuts the territorial waters of Gabon. The southern area of the EEZ, where EEZ Block 11 is situated, contains parts of the Ascension and Fang Fracture Zones.
ERHC will decide whether to take up the option to acquire up to a 15% paid working interest in each of two additional blocks of the EEZ when called upon to exercise the option by the Government of STP in accordance with the agreements which provide for the rights and option.
PSC for the EEZ
In July 2014, ERHC and the National Petroleum Agency of Săo Tomé and Príncipe (ANP-STP) announced the conclusion of final terms for the Production Sharing Contract for EEZ Block 11.
A PSC is an agreement that governs the relationship between the Company (
and its joint venture partners) and the Government of Săo Tomé and Príncipe in respect of exploration and production in any Block awarded to the Company.
The PSC spells out, among other things, the work commitments (including acquisition of data, drilling of wells, social projects, etc.), the time frames for accomplishing the work commitments, how production will be shared between the parties and the government, and how the costs of exploration, development and production will be recovered.
In October 2015, the Company reached an agreement with Kosmos Energy (NYSE: KOS), a leading independent oil and gas exploration and production company focused on frontier and emerging areas to tra
nsfer all ERHC's rights to Block 11 of the Săo Tomé and Principe Exclusive Economic Zone (EEZ) to Kosmos. The agreement has been approved by the National Petroleum Agency of Sao Tome & Principe ("ANP-STP") as required in the requisite Production Sharing Co
ntract ("PSC") for EEZ Block 11.
EEZ Operations Update
ERHC has concluded negotiation of the terms of a Production Sharing Contract with the National Petroleum Agency of Săo Tomé and Principe (ANP-STP) for Block 4. The Company is currently in discussions
with potential farm in partners. ERHC holds a 100 percent interest in EEZ Block 4, and 15% right to paid working interest in each of two additional blocks of the EEZ.
United States Operations Update
During the year ended September 30, 2016, NewStar purchased three small producing oil and gas wells in Ganado, Jackson County, Texas. However, during the six months ended March 31, 2017, NewStar received a return of portion of funds deposited $125,000, after the seller decided to sell only two of the wells due to rise in oil and gas prices.On March 20, 2017,
NewStar sold 55% of its working interest in proved properties to a third party for consideration of $65,000, resulting in a net loss of $146,750.
CURRENT PLANS FOR OPERATIONS
ERHC's principal assets are its interests in rights for exploration for hydrocarbons in Kenya, Chad, the JDZ and the EEZ. ERHC purchased 2 producing oil and gas wells located in Ganado, Jackson County, Texas and starts to have sources of income from its operations. The Company plans to develop its business by the acquisition of other assets which may include revenue-producing assets in diverse geographical areas and the forging of strategic, new business partnerships and alliances. ERHC cannot currently predict the outcome of negotiations for acquisitions, or, if successful, their impact on the Company's operations.
|
a.
|
ERHC’s management and board continue working toward a strategic realignment of the Company in the light of the current oil-price environment and continued constraints on funding for oil exploration activities,.
|
|
b.
|
The Company is refocusing on opportunities for cost-efficient entry into production and producing assets. This is in contrast to the pure exploration model which the Company previously ran and is intended to open up the Company to new streams of investment and revenue.
|
|
c.
|
Accordingly, the Company has concluded a Term Sheet with Starcrest Nigeria Energy Limited (“Starcrest”) pursuant to the Memorandum of Understanding earlier signed between the parties. The Term Sheet sets out a 180-day period commencing May 1, 2017 for a definitive agreement between the parties that gives ERHC entry, for valuable consideration, into Starcrest’s current entitlements to production.
|
|
d.
|
Starcrest has a significant stake in Elcrest Exploration and Production Company Limited, the holder of 45 percent of Nigeria’s producing OML 40. Starcrest also holds directly OPL 291 and OPL 242 in Nigeria.
|
|
e.
|
ERHC continues to bid, as part of several consortia with backing from financing partners, for producing interests in West Africa.
|
PLANS FOR FUNDING OF POTENTIAL ACQUISITIONS
ERHC's future plans will depend on the Company's ability to attract new funding. The Company is implementing a series of steps to fund the geophysical work, including magnetic/gravity and seismic surveys, prior to securing potential farm-out on Chad acreage. Said funding steps include but are not limited to the issuance of a series of convertible notes, which the Company has commenced, issuance of shares of common stock through registered direct offerings, which the Company plans to commence shortly and farm-outs to potential partners on its assets in Africa. The fund raising might include:
|
·
|
Farm-outs of part of the Company’s assets in Kenya, Chad and the Săo Tomé and P
ríncipe Exclusive Economic Zone
|
|
·
|
Issue shares of common stock through a registered direct offering
|
|
·
|
Other available financing options
|
The Company is continuing discussions with several international investment advisory and financial brokerage firms to act as financial advisors and intermediaries to ERHC. While ERHC has always used expert professional assistance to formulate and execute its capital raising initiatives, it is re-focusing on the retention of such advisors and intermediaries as a strategic imperative of the increased funding requirements that arise from the rollout of the new work programs in Chad and Kenya. The new firms retained will perform such financial advisory and investment banking services for the Company as are customary and appropriate in transactions of this type, including assisting the Company in analyzing, structuring, negotiating and effecting proposed capital raises. These initiatives may include any transaction or series of transactions in which one or more capital providers (existing or otherwise) commits debt capital to the Company, purchases equity of the Company (or securities of the Company convertible into equity), or alternatively funds the Company either directly or through farm-ins, farm-outs or other arrangements in which the capital provider earns an interest in oil and gas properties of the Company.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The process of preparing financial statements requires that the Company make estimates and assumptions that affect the reported amounts of liabilities and stockholders' equity at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to realization of oil and gas concession assets and the valuation allowance related to deferred tax assets as of the date of the financial statements; accordingly, actual results may differ from estimated amounts. ERHC's estimates and assumptions are based on current facts, historical experience and various other factors we believe to be reasonable under the circumstances. The most significant estimates with regard to the financial statements included with this report relate to realization of oil and gas concession assets and the valuation allowance related to deferred tax assets.
These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.
RECENT ACCOUNTING PRONOUNCEMENTS
In preparing its financial statements and filings, the company considers recent guidance issued related to accounting principles generally accepted in the United States. The Company believes that there has been no new guidance since its most recent annual report on Form 10-K that have a significant impact on its financial statements.
RESULTS OF OPERATIONS
Three Months Ended March 31, 2017 Compared with the Three Months Ended March 31, 2016
From October, 2016, we started to generate revenue from our new acquired oil and gas properties in Texas. During the three months ended March 31, 2017 and 2016, the revenue from sales of oil and gas was $18,282 and $0, respectively.
General and administrative expenses decreased from $619,616 in the three months ended March 31, 2016 to $334,422 in the three months ended March 31, 2017.
The decrease was primarily due to decrease in general and administrative expenses as part of our cost savings plan.
Exploration expense decreased from $375,172 in the three months ended March 31, 2016 to $0 in the three months ended March 31, 2017. The decrease was primarily due to operator analysis of the results of the Tarach-1 well shows that it did not encounter any reservoirs. The operator has therefore classified Tarach-1 a dry well. The well has accordingly been plugged and abandoned at the year ended September 30, 2016.
Other expenses decreased from $352,184 in the three months ended March 31, 2016 to $316,114 in the three months ended March 31, 2017. The decrease was primarily due to decrease in loss on embedded derivative and changes in mark to market of derivative related to convertible debts by comparison to the same period in fiscal year ended 2016.
During the three months ended March 31, 2017, the Company had a net loss of $789,821 compared with a net income of $704,552 for the three months ended March 31, 2016. The increase in loss resulted from the gain on sale of interest in oil and gas concessions of $2,070,000 during the three months ended March 31, 2016, compared with a loss of $146,750 during the same period in fiscal year 2017.
Six Months Ended March 31, 2017 Compared with the Six Months Ended March 31, 2016
During the six months ended March 31, 2017 and 2016, the revenue from sales of oil and gas was $54,612 and $0, respectively.
General and administrative expenses decreased from $1,196,056 in the six months ended March 31, 2016 to $800,295 in the six months ended March 31, 2017. The decrease was primarily due to decrease in general and administrative expenses as part of our cost savings plan.
Exploration expense decreased from $780,656 in the six months ended March 31, 2016 to $746,563 in the six months ended March 31, 2017. The decrease was primarily due to operator analysis of the results of the Tarach-1 well shows that it did not encounter any reservoirs. The operator has therefore classified Tarach-1 a dry well. The well has accordingly been plugged and abandoned at the year ended September 30, 2016.
Other expenses increased from $320,715 in the six months ended March 31, 2016 to $1,066,219 in the six months ended March 31, 2017. The increase was primarily due to increase in interest expense and loss on embedded derivative related to convertible debts by comparison to the same period in fiscal year ended 2016.
During the six months ended March 31, 2017, the Company had a net loss of $2,725,678 compared with a net income of $393,348 for the six months ended March 31, 2016. The increase in loss resulted from the gain on sale of interest in oil and gas concessions of $2,070,000 during the three months ended March 31, 2016, compared with a loss of $146,750 during the same period in fiscal year 2017.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2017, the Company had $129,646 in cash and cash equivalents, and a working deficit of $13,572,534. We are implementing a series of steps to raise funds to support potential acquisition of producing assets.Kenya drilling campaign, prior to securing potential farm-out on Chad acreage. The fund raising might include:
|
•
|
Farm-outs of part of the Company's assets
in Kenya, Chad and the Săo Tomé and Príncipe Exclusive Economic Zone
|
|
•
|
Issue shares of common stock through a registered direct offering
|
|
•
|
Convertible loans and other debt instruments
|
|
•
|
Other available financing options
|
GOING CONCERN
The accompanying financial statements have been prepared on the basis that the Company will continue as a going concern which contemplates the realization of assets and the satisfaction of liabilities in the ordinary and usual course of business. As of March 31, 2017, the Company has a working capital deficit and negative cash flows from operating activities. The Company also has significant tax arrears which resulted from a deduction disallowance made by an IRS audit of ERHC’s 2006 return, which audit lasted nearly seven years and has been previously disclosed. There is an outstanding IRS lien imposed on ERHC in Harris County, Texas in consequence. Furthermore, the Company is in significant arrears of cash calls relating to the company’s proportionate share of drilling costs (beyond operator-carried expenses) on the Tarach-1 well in Kenya Block 11A. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on
raising additional capital to fund ongoing exploration projects and ultimately on attaining future profitable operations. The Company is continuing with its plan to further seek new opportunity for farm-out its assets in Kenya, Chad and the Săo Tomé and Pr
íncipe Exclusive Economic Zone. Management believes that the Company’s current operating strategy will provide the opportunity for the Company to continue as a going concern as long as the Company continues to obtain additional financing; however there is no assurance that this will occur. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
OFF-BALANCE SHEET ARRANGEMENTS
At March 31, 2017, the Company had no off-balance sheet arrangements.
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
The Company's current focus is to exploit its primary assets, which are rights to working interests in oil and gas exploration blocks in Kenya, Chad, the JDZ and EEZ under agreements with the governments of Kenya, Chad, the JDA and the government of STP respectively. The Company intends to continue to form relationships with other oil and gas companies with operational, technical and financial capabilities, to partner with the Company in leveraging its interests. The Company currently has no other operations.
As of March 31, 2017, the Company's primary assets are agreements with Kenya, Chad, STP and the JDA which provide ERHC with rights to participate in exploration and production activities in Kenya, Chad, the EEZ and the JDZ in Africa and 2 producing oil and gas wells in the United States. This geographic area of interest is controlled by foreign governments that have historically experienced volatility of which is out of management's control. The Company's operations and its ability to exploit its interests in the agreements in this area may be impacted by this circumstance.
The future success of the Company's international operations may also be adversely affected by risks associated with international activities that include financial, economic and labor conditions, political instability, risk of war, expropriation, renegotiation or modification of existing contracts, tax laws (including host-country import-export, excise and income taxes and United States taxes on foreign subsidiaries) and changes in the value of the U.S. dollar relative to the local currencies in which future oil and gas producing activities may be denominated. Furthermore, changes in exchange rates may adversely affect the Company's future results of operations and financial condition.
Market risks relating to the Company's operations result primarily from changes in interest rates as well as credit risk concentrations. The Company's interest expense is generally not sensitive to changes in the general level of interest rates in the United States, particularly because a substantial majority of its indebtedness is at fixed rates.
The Company holds no derivative financial or commodity instruments.
The Company maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including the principal executive and financial officer as appropriate, to allow timely decisions regarding required disclosures. The Company’s Chief Financial Officer and Principal Accounting Officer evaluated the effectiveness of disclosure controls and procedures as of March 31, 2017, pursuant to Rule 13a-15(b) under the Exchange Act. Based on that evaluation, the Company’s Chief Financial Officer and Principal Accounting Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective to ensure that information required to be included in our periodic SEC filings is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms due to material weakness related to the following:
|
(i)
|
The Company’s system of internal controls failed to identify multiple journal entries that were identified by the Company’s external auditor.
|
Our conclusion related to the effectiveness of our controls is based solely on adjustments made by our external auditor as part of their yearend audit and not based upon any other control deficiencies within the entity.
There was no change in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the fiscal quarter ended March 31, 2017 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II. OTHER INFORMATION
LEGAL PROCEEDINGS
JDZ BLOCKS 5 AND 6
Arbitration and Lawsuit
The Company’s rights in JDZ Blocks 5 and 6 are currently the subject of legal proceedings filed at the London Court of International Arbitration and the Feder
al High Court in Abuja, Nigeria. The Company instituted both proceedings in November 2008 against the JDA and the Governments of Nigeria and Săo Tomé and Príncipe.
The Company seeks legal clarification that its rights in the two Blocks remain intact.
The issue in contention is contractual. The Company was awarded a 15 percent working interest in each of the Blocks in a 2004/5 bid/licensing round conducted by the JDA following the Company’s exercise of preferential rights in the Blocks as guaranteed by contract and treaty. The JDA and the Government of STP contend that certain correspondence issued by a previous CEO/President of the Company in 2006 amount to a relinquishment of the Company’s rights in Blocks 5 and 6 under the Company’s contracts with STP which provide for the rights. The Company contends that no such relinquishment has occurred and has sought recourse to arbitration accordingly. It also filed the suit to prevent any tampering with its said rights in JDZ Blocks 5 and 6 pending the outcome of arbitration.
Suspension of Proceedings on the Arbitration and Lawsuit
Proceedings on the suit and the arbitration are currently suspended while the Compan
y pursues amicable settlement with the Governments of Nigeria and Săo Tomé Príncipe.
ROUTINE CLAIMS AND OTHER MATTERS
From time to time, ERHC may be subject to routine litigation, claims, or disputes in the ordinary course of business. ERHC intends to defend these matters vigorously. The Company cannot predict with certainty, however, the outcome or effect of any of the arbitration or litigation specifically described above or any other pending litigation or claims.
Our operation and financial results are subject to various risks and uncertainties that could affect our business, financial condition, results of operations, and trading price of our common stock, including but not limited to, failing financial institutions. Please refer to our annual report on Form 10-K for fiscal year 2016 for additional information concerning these and other uncertainties that could negatively impact the Company.
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
None
Item 3.
|
Defaults Upon Senior Securities
|
None.
Item 4.
|
Submission of Matters to A Vote of Security Holders
|
None.
Item 5.
|
Other Information
|
None
|
Signatures
|
|
|
|
Rule 13a-14(a) Certification of the Chief Executive Officer
|
|
|
|
Rule 13a-14(a) Certification of the Principal Accounting Officer
|
|
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer
|
|
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Principal Accounting Officer
|
|
|
101.INS*
|
Instance Document
|
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
* Filed or furnished herewith.
|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ERHC Energy Inc.
Name
|
Title
|
Date
|
|
|
|
/s/ Peter Ntephe
|
President
|
May 15, 2017
|
Peter Ntephe
|
Chief Executive Officer
|
|
|
|
|
/s/ Sylvan Odobulu
|
Vice President (Admin) and Controller
|
May 15, 2017
|
Sylvan Odobulu
|
Principal Accounting Officer
|
|