ERHC Energy Inc. Announces Extension of Exploration Phase I in Joint Development Zone Block 2
HOUSTON, May 19, 2011 – 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 the Nigeria-São Tomé & Príncipe Joint Development Authority (JDA) has approved a 12-month extension to Exploration Phase I Joint Development Zone (JDZ) Block 2. ERHC holds a 22 percent working interest in JDZ Block 2 which is operated by ERHC’s technical partner, Sinopec Corp.
The JDA approval of extension is subject to final approval by the Nigeria-São Tomé & Príncipe Joint Ministerial Council.
ERHC’s partner, Sinopec Corp., completed drilling of the Bomu-1 exploration well in Block 2 in October 2009. The well was drilled to a total depth of 3,580 meters, targeting 13 individual sands. Eight sands were found to contain biogenic methane gas. During the Exploration Phase I extension, the contracting parties led by the operator are expected to conduct further geological and geophysical studies on the Block. Further, they will assess exploration strategy and overall course of action regarding Exploration Phase II.
Negotiations on the exploration program in JDZ Blocks 3 and 4 continue between the JDA and the contracting parties, led by Addax Petroleum. ERHC holds 10 percent working interest in JDZ Block 3 and 19.5 percent working interest in JDZ Block 4.
In addition to its working interests in JDZ Blocks 2, 3 and 4, ERHC holds working interests in Blocks 5, 6 and 9 of the JDZ. ERHC also holds 100 percent working interests in Blocks 4 and 11 of the Sao Tome and Principe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two more Blocks in the EEZ.
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 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 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.