Contact Information: Contact: Dan Keeney, APR DPK Public Relations 832-467-2904
ERHC Energy Inc. Interim CEO Issues Update for Shareholders
| Source: ERHC Energy
HOUSTON, TX--(Marketwire - December 3, 2007) - The following update on Company activities was
issued by Nicolae Luca, interim chief executive officer of ERHC Energy Inc.
(OTCBB : ERHE ), prior to the market open on Monday, December 3, 2007.
"To ERHC Shareholders:
"I am pleased once again to provide an update on the recent progress of
ERHC Energy Inc.
"We are pleased to report that progress continues toward eventual
exploration in several Joint Development Zone Blocks in which ERHC has a
stake. The latest word from Addax Petroleum, our consortium partner in JDZ
Blocks 2, 3 and 4, is that they are actively seeking a drilling rig of
opportunity to accelerate their deepwater drilling program. This is in
addition to the Aban Abraham drilling rig, which has already been
contracted.
"Addax has announced intentions to start exploration drilling on its
deepwater license areas as soon as possible in 2008, but it is important to
keep in mind that contingencies could always arise that delay the start of
drilling. We fully support Addax's efforts to avert delay, or at least
mitigate its impact, by working to secure a drilling rig of opportunity.
"Work continues to pinpoint where and how to drill in each of the JDZ
Blocks to achieve the greatest likelihood of success. ERHC Vice President
Technical, Jim Ledbetter has led our efforts in this regard and reports
that, along with our consortium partners, Addax and Sinopec, we are in the
midst of highly advanced and technical work. As a Company with interests in
several blocks in the JDZ, we are helping to share knowledge among the
operators of all the Blocks to minimize mistakes and maximize success.
Throughout the process, keeping an open mind and looking for creative
solutions is essential. The consortium has brought a collaborative mindset
to their meetings.
"We can also report progress toward resolving the difference of opinion
regarding the recovered nine percent share of JDZ Block 4. You may remember
that ERHC took action to recover it from another company that had failed to
meet certain obligations. Our consortium partner, Addax Petroleum (Nigeria
Offshore 2) Limited, claims entitlement under the existing agreements to
7.2 percent out of the recently recovered nine percent, leaving 1.8 percent
remaining with ERHC. If finalized, this would increase ERHC's share of JDZ
Block 4 from 17.7 percent to 19.5 percent. ERHC and Addax are amicably
exchanging statements in arbitration, to resolve whether or not additional
consideration is due to ERHC from Addax for the 7.2 percent claimed by
Addax under the terms of the existing agreements. The parties are also
exploring mediation as an alternative to seeing arbitration to conclusion.
"As many of you are aware, the Company's annual report for the fiscal year
ending September 30th is scheduled to be issued in December. It has been
the focus of a great deal of attention during the past several weeks and we
look forward to sharing the annual report with you. ERHC will hold a
conference call to update the investment community on company operations
and discuss its 2007 financial results on Tuesday, January 15, 2008, at
9:00 a.m. Eastern Time (8:00 a.m. Central Time). To participate on the
conference call, please dial 866-697-7870 (domestic) or 706-902-1710
(international) five to ten minutes before the call begins and reference
the pass code 26560348.
"ERHC is moving forward with plans to hold its next annual shareholders'
meeting on Tuesday, April 22, 2008. As announced earlier, it will be held
in Houston. Shareholders of record as of March 14, 2008 will be eligible
to receive notice of and vote at the meeting.
"Meanwhile, we are also continuing to assess the feasibility of various
acquisition prospects in North America and other regions. Several
interesting possibilities have come to our attention. We must add however
that at this stage, no guarantees can be given that any specific prospects
can be brought to fruition. We look forward to sharing additional
information with shareholders as our acquisition strategy develops. Our
efforts to raise awareness about our ongoing operations and the progress
being made toward eventual drilling in the JDZ will continue to accelerate
in the months to come. We will be exhibiting at the Nigeria Oil & Gas 2008
conference, which runs from February 18-21, 2008. The conference is
expected to attract more than 4,000 participants, including more than 600
senior delegates.
"ERHC Energy remains focused on building positive momentum and values your
ongoing trust and support. The management and board look forward to getting
together with you in due course at the shareholders meeting."
Sincerely,
Nicolae Luca
Acting 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 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" 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
include, but are not limited to, 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
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 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 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.