ERINQ Erin Energy Corporation (CE)

Provides Operational Update on its West and East Africa Operations

Erin Energy Corporation (Erin Energy or the Company) (NYSE American:ERN) (JSE:ERN) announced today unaudited financial and operational results for the year ended December 31, 2017. The Company intends to file its audited financials and Annual Report on Form 10-K for the year ended December 31, 2017 with the Securities and Exchange Commission after close of market on Friday, March 16, 2018.

2017 Highlights:

• Crude sales volumes of more than 1.8 million net barrels of oil;
• $101.2 million in revenue, a 30% increase over 2016;
• Total production of approximately 1.7 million net barrels of oil;
• Spudded successful Miocene exploration well offshore Nigeria.

“During 2017, we produced approximately 1.7 million net barrels of oil and generated revenues of more than $101 million,” said Femi Ayoade, Chief Executive Officer. “2017 had its challenges for our industry and our company, but Erin Energy’s perseverance and some stabilization of the commodity price, allowed for good progress in many of our efforts.”

Ayoade continued, “The most exciting accomplishments were the farm out to FAR, and more recently PETRONAS, to our offshore blocks in The Gambia and our Miocene discovery with the Oyo-NW well.”

Operational Update

Average net daily production for 2017 was approximately 4,900 bopd compared to approximately 4,800 bopd for 2016. For the fourth quarter 2017, net daily production was approximately 4,000 bopd compared with 5,800 for the comparative period in 2016. The average price received for 2017 was $54.84 per barrel compared to $45.45 in 2016.

Net production volumes for the year were approximately 1.7 million net barrels of oil compared to approximately 1.8 million net barrels in 2016. The Company’s crude oil inventory was approximately $3.6 million at December 31, 2017.

The Company announced early this year that it had successfully completed the drilling of the Oyo-NW exploration well and that it had discovered hydrocarbons in the Miocene Formation. The well is located approximately 9.5 kilometers northwest of the Oyo Central field on the Company’s offshore Nigeria block 120.

Oyo-NW was drilled to a total vertical depth subsea of 12,218 feet and penetrated multiple sand units with total gross thickness of 260 feet in the depth range from 7,052 - 10,873 feet TVDSS as interpreted from wireline log data including approximately 115.2 feet of gross hydrocarbons in the two Miocene targets, U7.0 and U8.0.(1)

The Company is now planning an appraisal of the discovery for the second-half of 2018, subject to the availability of capital and drilling services.

In The Gambia, the Company completed a farm-in agreement in early-2017 with FAR Ltd., an ASX listed company, which has seen successful offshore in Senegal with its SNE field discovery and subsequent appraisal program. The Company recently announced that a subsidiary of Petroliam Nasional Berhad (PETRONAS) has also farmed into The Gambia blocks and that the joint venture plans to drill the Samo-1 prospect, which as reported by our partner FAR is estimated to contain unrisked mean prospective resources of 825 million barrels of oil volume*.

In Ghana, Erin Energy announced that the Final Judgement was issued by the International Tribunal of the Law of the Sea on Maritime Boundary Arbitration between Ghana and Côte d’Ivoire. The maritime boundary delimited by the Special Chamber’s decision ruled in favor of Ghana and had no material impact on the Company’s Expanded Shallow Water Tano block.

Erin Energy has re-commenced work with the Government of Ghana and its joint venture partners to progress operational activities and is planning a 3D marine seismic survey acquisition later this year. We plan to tender the 3D seismic survey once we receive government approval.

The Company’s year-end 2017 SEC proved oil reserves were 7.1 million barrels (MMbbls). The Company’s reported reserves are prepared by DeGolyer and MacNaughton.

Financial Summary

Full year 2017 revenues were $101.2 million, up approximately 30% from $77.8 million in 2016. Fourth quarter 2017 revenues were $21.7 million compared to $21.1 million for the same period in 2016.

The Company reported a net loss of $151.9 million or a loss of $0.71 per share for full year 2017 compared with a net loss of $142.4 million or a loss of $0.67 per share for full year 2016.

Exploration expenses totaled $4.6 million for the full year. As of December 31, 2017 cash, cash equivalents and restricted cash were approximately $33.8 million.

The Company’s audited financial statements will contain an unqualified audit opinion from its independent registered public accounting firm that included a going concern emphasis of matter paragraph. This disclosure is made pursuant to NYSE American Company Guide, Section 610(b), which requires separate disclosure of receipt of an audit opinion containing a going concern qualification.

Conference Call and Webcast Information

The Company will host a conference call on Friday, March 16, 2018 at 10:00 a.m. CT (11:00 ET) to discuss the results and update its current operations.

The dial-in number to access the conference call is 1-844-883-3907 in the United States or 1-412-317-9253 internationally. Participants should ask the call operator to be placed on the “Erin Energy Results Conference Call.”

For those unable to participate in the Company’s conference call, a replay will be available for audio playback until March 23, 2018. The number to access the conference call replay is 1-877-344-7529 or outside the US 1-412-317-0088. The passcode for the replay is 10117494.

Erin Energy Corporation

Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 5 licenses across 3 countries covering an area of 6,100 square kilometers (~1.5 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana and The Gambia. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN.

For more information about Erin Energy or to request a hard copy of the Company’s most recent complete audited financial statements free of charge, please call +1 713 797 2940 or visit www.erinenergy.com.

(1) Source: Based on management estimates.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.

The Company’s actual results could differ materially from those anticipated or implied in these forward-looking statements due to a variety of factors, including the Company’s ability to successfully finance, drill, produce and/or develop the wells and prospects identified in this release, and risks and other risk factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.

*Prospective Resource Estimates Cautionary Statement

With respect to the Prospective Resource estimates contained within this report, it should be noted that the estimated quantities of Petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations. These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. The Prospective Resource estimates provided in this report are Low Estimate, Best Estimate and High Estimate and represent that there is a 90%, 50% and 10% probability respectively that the actual resource volume will be in excess of the amounts reported.

  ERIN ENERGY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except for per share amounts)     Years Ended December 31, 2017   2016   2015 Revenues: Crude oil sales, net of royalties $ 101,173   $ 77,815   $ 68,429   Operating costs and expenses: Production costs 80,912 94,607 90,079 Crude oil inventory (increase) decrease 2,093 (1,469 ) (2,502 ) Workover expenses (713 ) 7,860 972 Exploratory expenses 4,577 39,269 16,437 Depreciation, depletion and amortization 55,342 58,051 97,179 Accretion of asset retirement obligations 1,933 1,867 1,931 Impairment of oil and gas properties 78,711 645 261,208 Loss on settlement of asset retirement obligations — 205 3,653 General and administrative expenses 11,053   13,772   15,905   Total operating costs and expenses 233,908   214,807   484,862   Loss on disposal of other property and equipment 148 — — Gain on sale of oil and gas properties (2,348 ) —   —   Operating loss (130,535 ) (136,992 ) (416,433 ) Other income (expense): Currency transaction gain 5,241 15,674 2,520 Interest expense (27,656 ) (21,924 ) (17,986 ) Gain on fair value of derivative liability 36   —   —   Total other expense, net (22,379 ) (6,250 ) (15,466 ) Loss before income taxes (152,914 ) (143,242 ) (431,899 ) Income tax expense —   —   —   Net loss before non-controlling interest (152,914 ) (143,242 ) (431,899 ) Net loss attributable to non-controlling interest 1,022   841   962   Net loss attributable to Erin Energy Corporation $ (151,892 ) $ (142,401 ) $ (430,937 ) Net loss attributable to Erin Energy Corporation per common share: Basic $ (0.71 ) $ (0.67 ) $ (2.04 ) Diluted $ (0.71 ) $ (0.67 ) $ (2.04 ) Weighted-average common shares outstanding: Basic 213,713 212,318 211,616 Diluted 213,713 212,318 211,616     ERIN ENERGY CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except for share and per share data)     As of December 31, 2017   2016 ASSETS Current assets: Cash and cash equivalents $ 22,134 $ 7,177 Restricted cash 11,694 2,600 Accounts receivable - trade 6,676 — Accounts receivable - partners 1,779 674 Accounts receivable - related party 2,926 1,956 Accounts receivable - other 67 29 Crude oil inventory 3,604 9,398 Prepaids and other current assets 2,452   872   Total current assets 51,332   22,706   Property, plant and equipment: Oil and gas properties (successful efforts method of accounting), net 199,402 265,713 Other property, plant and equipment, net 359   716   Total property, plant and equipment, net 199,761   266,429   Other non-current assets Other non-current assets 35   66   Other assets, net 35   66   Total assets $ 251,128   $ 289,201   LIABILITIES AND CAPITAL DEFICIENCY Current liabilities: Accounts payable and accrued liabilities $ 277,404 $ 244,963 Accounts payable and accrued liabilities - related party 40,483 29,513 Accounts payable - partners 249

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Short-term note payable - related party 200 — Current portion of long-term debt, net 78,183 12,627 Derivative liability 1,799   —   Total current liabilities 398,318   287,103   Long-term notes payable - related party, net 129,830 129,796 Long-term debt, net 61,349 74,446 Asset retirement obligations 24,409   22,476   Total liabilities 613,906   513,821  

Commitments and contingencies

Capital deficiency: Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding as of December 31, 2017 and 2016, respectively — —

Common stock $0.001 par value - 416,666,667 shares authorized; 215,093,647 and 212,622,218 shares outstanding as of December 31, 2017 and 2016, respectively

215 213 Additional paid-in capital 807,473 792,972 Accumulated deficit (1,170,184 ) (1,018,292 )

Treasury stock at cost, 307,843 and 99,932 shares as of December 31, 2017 and 2016, respectively

(945 ) (228 ) Total deficit - Erin Energy Corporation (363,441 ) (225,335 ) Non-controlling interests 663   715   Total capital deficiency (362,778 ) (224,620 ) Total liabilities and capital deficiency $ 251,128   $ 289,201       ERIN ENERGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)    

Years Ended December 31,

2017   2016   2015 Cash flows from operating activities Net loss, including non-controlling interest $ (152,914 ) $ (143,242 ) $ (431,899 )

Adjustments to reconcile net loss to cash provided by operating activities:

Depreciation, depletion and amortization 55,342 58,051 97,179 Impairment of oil and gas properties 78,711 645 261,208 Write-off of suspended exploratory well costs — 33,031 — Asset retirement obligation accretion 1,933 1,867 1,931 Amortization of debt issuance costs 4,496 3,615 2,766 Loss on settlement of asset retirement obligations — — 3,653 Unrealized currency transaction gain (2,536 ) (15,674 ) (2,520 ) Loss on disposal of other property and equipment 148 — — Gain on sale of oil and gas properties (2,348 ) — — Gain on fair value of derivative liability (36 ) — — Share-based compensation 1,932 2,941 5,027 Payments to settle asset retirement obligations — — (16,640 ) Settlement of accounts payable and accrued expenses (10,189 ) — — Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (3,492 ) 630 (804 ) (Increase) decrease in crude oil inventory 2,093 (1,469 ) (2,502 ) (Increase) decrease in prepaids and other current assets (1,456 ) (187 ) 746 Increase in accounts payable and accrued liabilities 54,373   66,147   84,000   Net cash provided by operating activities 26,057   6,355   2,145   Cash flows from investing activities Capital expenditures (61,015 ) (19,293 ) (84,039 ) Net cash used in investing activities (61,015 ) (19,293 ) (84,039 ) Cash flows from financing activities Proceeds from the exercise of stock options and warrants — 364 1,855 Payments for treasury stock arising from withholding taxes upon restricted stock vesting and exercise of stock options (717 ) (228 ) — Proceeds from MCB Finance Facility 65,736 — — Repayments of MCB Finance Facility (141 ) — — Proceeds from JSC 2017 Note 11,687 — — Repayments of term loan facility (9,101 ) (5,968 ) (337 ) Proceeds from note payable - related party, net — 6,829 61,815 Proceeds from short-term note payable — 504 — Proceeds from short-term notes payable - related party 200 — — Repayment of short-term note payable — (449 ) — Debt issuance costs (8,655 ) (1,040 ) — Funds released from restricted cash, net — 6,061 — Funds restricted for debt service (9,094 ) — — Funding from non-controlling interest —   —   553   Net cash provided by financing activities 49,915   6,073   63,886   Effect of exchange rate on cash and cash equivalents —   5,679   1,228   Net increase (decrease) in cash and cash equivalents 14,957 (1,186 ) (16,780 ) Cash and cash equivalents at beginning of year 7,177   8,363   25,143   Cash and cash equivalents at end of year $ 22,134   $ 7,177   $ 8,363   Supplemental disclosure of cash flow information Cash paid for: Interest, net of amounts capitalized $ 11,022 $ 10,407 $ 11,114 Supplemental disclosure of non-cash investing and financing activities: Issuance of common shares for settlement of liabilities $ 3,527 $ — $ 125 Discount on notes payable pursuant to issuance of warrants $ 10,785 $ 53 $ 4,911 Reduction in oil and gas properties arising from settlement of accounts payable and accrued liabilities $ 11,478 $ 10,048 $ —

Reduction in accounts payable from settlement of Northern Offshore contingency

$ — $ — $ 24,307 Receivable from non-controlling interest $ — $ — $ 552 Shares issued for services $ 93 $ — $ — Change in asset retirement obligation estimate $ — $ — $ (4,284 )  

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Erin Energy CorporationLionel McBee, +1 713-797-2960Director, Investor Relations and Corporate Communicationslionel.mcbee@erinenergy.com