ERHC Energy Inc. Reports Fourth Quarter and Year End 2007 Financial Results
HOUSTON, December 14, 2007 - 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 fiscal year ended September 30, 2007.
As of September 30, 2007, ERHC reported cash assets totaling $34.7 million.
During the three months ended September 30, 2007, ERHC had a net loss of $683,037, compared to a net loss of $1,039.670 for the three months ended September 30, 2006. General and administrative expenses during the fourth quarter totaled $1,377,372, a reduction of 12 percent compared to the same period a year earlier.
For the fiscal year ended September 30, 2007, ERHC had a net loss of $1,756,904, compared to a net income of $23,171,536 for fiscal 2006. The decrease in net income was due primarily to the one-time a $30.1 million net gain from sale of participating interests in Blocks 2, 3 and 4 of the Joint Development Zone (JDZ). For the year, general and administrative expenses fell below $5 million. The decrease of 17 percent was a result of strict cost controls implemented by Company leadership.
"ERHC Energy has strengthened its fundamentals, with improved operational efficiencies, solid finances and continued strong relationships with strategic allies Addax Petroleum and Sinopec," said Nicolae Luca, acting chief executive officer. "With exploratory drilling possible in JDZ Blocks 2 and 4 within the next calendar year, we expect to begin realizing the benefits of our strategy for orderly growth."
ERHC Energy holds exploration rights in six JDZ blocks. Additionally, subject to certain restrictions, ERHC holds the right to receive up to two blocks of ERHC's choice in Sao Tome's Exclusive Economic Zone (EEZ) and holds the option to acquire up to 15 percent paid working interest in up to two additional blocks of ERHC's choice in the EEZ.
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. A simultaneous live Webcast will be available over the Internet and will be accessible by going to the following link: https://www302.livemeeting.com/cc/erhcenergy/join?id=SZJS7G&role=attend&pw=5%3Ds%5Eg%7EX.
A replay of the call will be available from Tuesday, January 15, 2008 at 10:00 a.m. Eastern Time through January 22, 2008 by dialing 866-697-7870 (domestic) or 706-902-1710 (international) and providing the following replay code 26560348. In addition, the Webcast will be available for replay until February 28, 2008 by going to https://www302.livemeeting.com/lrs/8000074869/PublicEvents.aspx.
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. For more information, visit www.erhc.com.
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.