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ERHC Energy Inc. Reports Fourth Quarter and Year End Financial Results
| Source: ERHC Energy
HOUSTON, TX -- (MARKET WIRE) -- December 14, 2006 -- ERHC Energy Inc. (OTCBB : ERHE ), an independent
oil and gas company with assets in the Gulf of Guinea, today announced its
results for the fourth quarter and year ended September 30, 2006.
As of September 30, 2006, ERHC reported cash assets totaling $41 million.
During the three months ended September 30, 2006, ERHC had a net loss of
$1,039.670, compared to a net loss of $2,786,906 for the three months ended
September 30, 2005. General and administrative expenses during the fourth
quarter totaled $1,569,158, a reduction of $1.2 million compared to the
same period a year earlier.
For the fiscal year ended September 30, 2006, ERHC had net income of $23.2
million, compared with a net loss of $11.3 million for the fiscal year
ended September 30, 2005. The improvement in net income was the result
primarily of a $30.1 million net gain from sale of participating interests
in Blocks 2, 3 and 4 of the Joint Development Zone (JDZ) and a conversion
of $5.7 million in debt to common stock and income tax expenses. For the
year, general and administrative expenses were up 29 percent over fiscal
year 2005, mostly due to an increase in legal costs.
"Though our successes were overshadowed at times by various challenges,
this has been a year in which we made significant strides toward exploiting
our assets in the JDZ," said Nicolae Luca, acting chief executive officer.
"With a solid financial position and strong relationships with strategic
partners Addax Petroleum and Sinopec, we believe that we are positioned
well for the coming year."
ERHC Energy holds exploration rights in six JDZ blocks, consisting of a 22
percent participating interest in JDZ Block 2, a 10 percent participating
interest in JDZ Block 3, a 17.7 percent participating interest in JDZ Block
4, and a 15 percent working interest in JDZ Blocks 5, 6 and 9.
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; sustainable and profitable growth
through risk balanced smart exploration, cost efficient development and
high margin production.
Safe Harbor Statement
This press release contains "forward-looking statements," including
statements about ERHC Energy Inc.'s future operating milestones, financing
plans, as well as other matters that are not historical facts or
information. These forward-looking statements are based on management's
current assumptions and expectations and involve risks, uncertainties and
other important factors, specifically including 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, that may cause the
Company's actual results to be materially different from any future results
expressed or implied by such forward-looking statements. The Company
undertakes no obligation to update or revise any such forward-looking
statements, whether as a result of new information, future events or
otherwise, nor is there any assurance that the contemplated financing will
be effected, under the terms set forth herein or any other terms.