ERHC Energy Inc. Announces Board Re-Election, Leadership Changes
Company to Implement Existing Operational Structure to Manage Operations in Joint Development Zone Blocks
HOUSTON, April 22, 2008 - ERHC Energy Inc. (OTCBB: ERHE), a Houston-based company with valuable oil and gas assets in the Gulf of Guinea, today announced the re-election of directors Howard Jeter, Clement Nwizubo and Dr. Andrew Uzoigwe. Their respective terms will run through the Company's next Annual Shareholders Meeting.
ERHC also announced the resignation of Nicolae Luca as director and acting chief executive officer. Mr. Luca, who did not seek re-election after serving on the ERHC board since 2001, will pursue other interests. The board of directors thanked Mr. Luca for his devoted service to the Company and accepted his resignation.
"Mr. Luca's leadership made it possible for ERHC to continue advancing the interests of shareholders during a sometimes challenging period," said Board Member Howard Jeter. "We thank Mr. Luca for his guidance in stabilizing the Company's operations and finances. His contributions have been instrumental in putting ERHC on the threshold of exploration activities in the Gulf of Guinea."
ERHC announced the appointment of Peter Ntephe to the newly created position of chief operating officer (COO). Mr. Ntephe, who has served as corporate secretary since 2001, will oversee the administration and corporate governance of ERHC and its subsidiaries. Pending the appointment of a chief executive officer for ERHC Energy, Mr. Ntephe will replace Mr. Luca as acting CEO.
The ERHC board announced that it will continue its efforts to appoint a permanent CEO. The board continues to discuss the Company's future with qualified candidates and will make an announcement when an agreement has been reached.
ERHC announced the creation of the position of vice president corporate development. This person will oversee planning and implementation of strategies for corporate growth. Responsibilities will include the identification of appropriate opportunities for corporate mergers and acquisitions, and corporate finance options.
With exploration in at least one of the Joint Development Zone (JDZ) Blocks in which ERHC has interests expected to begin in as little as six to eight months, ERHC announced that it will implement the operational structure originally created in 2005. ERHC Energy Inc.'s wholly owned subsidiary, ERHC Energy (Cayman) Ltd., will serve as holding company for three working subsidiaries through which its activities in the Gulf of Guinea will be operated. The three working subsidiaries are ERHC Energy Nigeria JDZ Block 2 Ltd., ERHC Energy Nigeria JDZ Block 3 Ltd. and ERHC Energy Nigeria JDZ Block 4 Ltd. Each is jointly owned by ERHC Energy Inc. and ERHC Energy (Cayman) Ltd. And each will manage the operations in the JDZ Block for which each is respectively named.
"This operational structure is similar to those used by ERHC's technical partners in the JDZ and has been in place for years," said Peter Ntephe, ERHC's COO. "The subsidiary operational structure has numerous important legal, operational and business development advantages for ERHC and its shareholders now that exploration imminent."
The Company has interests in Blocks 2, 3, 4, 5, 6, and 9 of the JDZ. ERHC has additional interests in the territorial waters of São Tomé and Príncipe, known as the Exclusive Economic Zone (EEZ) and is examining potential strategic acquisition targets.
About ERHC Energy
ERHC Energy Inc. is a publicly traded American company with valuable oil and gas assets in the in the highly prospective Gulf of Guinea. 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. 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 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 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.