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ERHC Energy Inc. Pursues Investments in Nigeria Oil and Gas Industry
Signs Memorandums of Understanding Related to Interests in Eremor Marginal Field and Stake in Oil Well Testing Company
| Source: ERHC Energy Inc.
HOUSTON, TX--(Marketwire - November 24, 2009) - ERHC Energy Inc. (OTCBB : ERHE ), a publicly
traded American company with oil and gas assets in the highly prospective
Gulf of Guinea off the coast of West Africa, today announced that
negotiations are underway on potential investments that would expand the
Company's presence in Nigeria's oil and gas industry.
ERHC has signed a non-binding Memorandum of Understanding (MOU) with Circle
Ltd. and Excel Exploration and Production Ltd. to negotiate investment in
and acquisition of working interests in the Eremor Marginal Field (OML 46).
The Eremor Field, which is located in shallow water off-shore Nigeria, was
discovered in 1978. The discovery well, Eremor-1, encountered three oil and
gas zones, the most prominent of which is the D-03 reservoir with 43 feet
of net oil sand. It was re-entered for testing in 2005 with the D-03
reservoir testing 2,200 barrels per day of oil with API gravity of 220, a
low gas to oil ratio and no water. Excel was awarded a 100 percent interest
and operatorship of Eremor in 2003.
ERHC, through its locally incorporated subsidiary, ERHC Energy Nigeria
Ltd., has also entered into a non-binding MOU with WellTest Integrated
Services Ltd. to negotiate the acquisition of a controlling equity interest
in WellTest. The company provides well testing, production engineering and
procurement services to Nigeria's oil and gas industry.
To coordinate the Company's business development in the Nigerian and West
African oil and gas industry, ERHC has opened its Nigeria liaison office at
Oguda Close, Maitama, Abuja. The Company's wholly owned subsidiary ERHC
Energy Nigeria Ltd. operates the liaison office.
"With considerable progress being made in the ongoing exploration campaign
of our oil and gas interests in the Nigeria Sao Tome and Principe Joint
Development Zone (JDZ), this is the right time to accelerate business
development activities elsewhere," said Peter Ntephe, chief operating
officer of ERHC. "These opportunities will begin the process of
diversifying our portfolio of assets and accelerate the timeline for
producing revenues. We are also investigating other exploration and
production opportunities and will report progress to stockholders at the
earliest appropriate time."
The MOUs are non-binding and the completion of the transaction is subject
to, among other things, negotiation of a definitive agreement, satisfactory
due diligence and adequate financing. The parties expect to enter into a
definitive agreement and complete the transactions, subject to satisfaction
of closing conditions and the receipt of all necessary regulatory and other
approvals, including board approvals.
ERHC Energy has interests in six of the nine Blocks in the offshore JDZ and
realizing the value of these interests remains the Company's primary focus.
A comprehensive drilling campaign is currently underway in JDZ Blocks 2, 3
and 4. The Company has additional interests in the Exclusive Economic Zone
(EEZ) of Democratic Republic of São Tomé & Príncipe.
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused
on growth through high impact exploration in the highly prospective Gulf of
Guinea and the development of undeveloped and marginal oil and gas fields.
ERHC is committed to creating and delivering significant value for its
shareholders, 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 shareholders' meetings, response to the Senate
Subcommittee investigation, developments in the SEC investigation of the
Company and related proceedings, 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 the JDZ and the
exclusive territorial waters 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.
Cautionary Note to U.S. Investors -- The United States Securities and
Exchange Commission permits oil and gas companies, in their filings with
the SEC, to disclose only proved reserves that a company has demonstrated
by actual production or conclusive formation tests to be economically and
legally producible under existing economic and operating conditions. We use
certain terms on this Web site, such as "recoverable reserves potential,"
that the SEC's guidelines generally prohibit us from including in filings
with the SEC. U.S. Investors are urged to consider closely the disclosure
in our Form 10-K. You may review our filing with the SEC at the following
Web site:
www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000799235.