HOUSTON, TX--(Marketwired - Nov 14, 2016) - ERHC Energy Inc. (OTC PINK: ERHED), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued the following update on Company activities.
1. Kenya Block 11A
a. ERHC's preliminary analysis of the Tarach-1 drilling results reveals encouraging information for further exploration.
b. The objective of the well was to establish a working petroleum system and test a three-way structural closure trapping against a North-South trending normal fault.
c. The Tarach-1 well encountered two different hydrocarbon-charged intervals, the first extending over 100 meters.
d. The significant oil shows and highly-elevated gas readings encountered by the well indicate the presence of a working petroleum system with the strong possibility of significant hydrocarbon generation.
e. As previously advised, the Tarach-1 well was always designed as an exploratory well. It has been plugged following conclusion of drilling. Post-well analysis continues.
f. ERHC holds a 35% interest in Block 11A.
2. Chad Block BDS 2008
a. ERHC continues to talk with potential farm-in partners.
b. 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.
c. 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).
d. ERHC holds a 100 percent interest in BDS 2008.
3. São Tomé and Príncipe Exclusive Economic Zone (EEZ)
a. ERHC has concluded negotiation of the terms of a Production Sharing Contract with the National Petroleum Agency of São Tomé and Principe (ANP-STP).
b. ERHC is currently in discussions with potential farm in partners.
c. ERHC holds a 100 percent interest in EEZ Block 4.
4. Nigeria - São Tomé and Príncipe Joint Development Zone (JDZ)
a. The Nigeria - São Tomé and Príncipe Joint Development Authority (JDA) continues to engage with the remaining JDZ contracting parties, including ERHC, on the way forward for further exploration.
b. A five-well exploration campaign in JDZ Blocks 2, 3 and 4 (in which ERHC holds significant interests) failed to discover hydrocarbons in commercial quantities but yielded invaluable information that will guide future exploration.
5. Other Business Activities:
a. In the light of the current oil price environment and continued constraints on funding for oil exploration activities, ERHC's management and board are working toward a strategic realignment of the Company.
b. ERHC has also received and continues to consider exploratory enquiries about mergers and acquisitions, new strategic investments and other arrangements.
c. In response to current economic conditions, ERHC continues to reduce costs across board. Investor relations and outreach has been affected but ERHC will endeavor to keep satisfying any mandatory regulatory requirements for disclosure, particularly to shareholders as whole.
ERHC encourages shareholders and others to refer to quarterly and annual filings with the SEC, which can be found at http://erhc.com/secfilings/.
We thank you for your continued interest in ERHC.
President and Chief Executive Officer
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.
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.