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ERHC Energy Inc. Board Adopts New Committee Charters, Approves Management Recommendation to Reformulate Business Plan
Management Meets With Leaders of Joint Development Authority to Reaffirm Commitment
| Source: ERHC Energy
HOUSTON, TX--(Marketwire - August 27, 2007) - ERHC Energy Inc. (OTCBB : ERHE ), an independent
oil and gas company, today announced actions taken by its board of
directors at its August meeting in Nigeria.
The ERHC board of directors approved revisions to the Board Committee
Charters for ERHC Energy's Governance and Nominating Committee, and
Compensation Committee. The revised Charters, adopted voluntarily by ERHC's
board, subscribe to the NASDAQ Stock Market LLC standards of independence
for independent directors. Independent directors serving on the
Compensation Committee will, in addition, continue to be required to meet
the standards of the relevant Internal Revenue Service and Securities and
Exchange Commission rules.
Acting Chief Executive Officer Nicolae Luca explained that the board of
directors of ERHC will evaluate future candidates for positions on the
board to determine whether they satisfy these independence standards.
"We believe that independent directors play a crucial role in ensuring that
the board of directors carries out its responsibilities in a manner
consistent with its duties to shareholders," said Mr. Luca. "In
coordination with the adoption of these revisions to the Committee
Charters, efforts are underway to recruit three additional board members."
ERHC's board also approved a new Charter for the Audit Committee, as well
as Corporate Governance Guidelines to supplement the Board Committee
Charters and the Company's corporate governance policies.
Additionally, the board approved management's recommendation to reformulate
the Company's business plan. The reformulated plan will permit ERHC's
management to expand the Company's business focus beyond the Gulf of
Guinea. Under Mr. Luca's leadership during the past year, ERHC's management
has reaffirmed the Company's rights in the Nigeria-Sao Tome & Principe
Joint Development Zone (JDZ), strengthened relationships with governments
and regulators in the region, stabilized the Company's finances and put
strict controls in place to keep expenses in check.
In coordination with the board meeting, ERHC's management met with leaders
of the Joint Development Authority (JDA), which oversees activities in the
JDZ. During informal discussions with the JDA Chairman Ado Wanka at the
JDA's offices in Abuja, Nigeria, ERHC's representatives reiterated the
Company's commitment, in conjunction with its technical partners, to
fulfill its obligations in terms of exploration and production activities
and community relations initiatives. ERHC representatives left with an
expectation of the JDA's continuing cooperation with ERHC and other holders
of rights in the JDZ. ERHC holds rights to participate in exploration and
production activities in six of the JDZ Blocks.
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.
Safe Harbor Statement
This press release of ERHC Energy Inc. (the "Company") contains
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements may include, but are not
limited to, statements concerning the Company's future growth, operating
milestones, drilling operations, business plans, prospects, investment
opportunities, activities in the JDZ, corporate governance, cash position,
financial position and financing plans, 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 Sao Tome and
Principe, 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, compliance with governmental laws and 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
forward-looking statements. Each
forward-looking statement 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
forward-looking statement is based.