ERHC Energy Inc. Technical Partner Commences Exploration Campaign
HOUSTON, August 26, 2009 – 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 exploratory drilling is underway in Block 4 of the Nigeria-São Tomé and Príncipe Joint Development Zone (JDZ) in which ERHC has a 19.5 percent interest. The Company’s technical partner, Addax Petroleum Corporation, the operator in JDZ Block 4, has announced the spudding of the Kina Prospect.
“The start of drilling in our JDZ Blocks represents an important step toward realizing the Company’s vision after more than a decade of hard work,” said Peter Ntephe, chief operating officer with ERHC. “We are very excited that we are on the cusp of realizing the value of a portion of ERHC’s portfolio of oil and gas assets in the Gulf of Guinea.”
Another significant development is the change of operator in JDZ Block 3, in which ERHC has a 10 percent interest. Addax has announced that it has acquired the 51 percent interest formerly held by Anadarko and will be the operator of JDZ Block 3.
The drilling campaign is being conducted using Transocean’s Deepwater Pathfinder, a fifth generation dynamically positioned deepwater drilling rig capable of drilling in water depths up to 3,048 meters. Addax plans to drill the "Kina" and "Lemba" prospects in JDZ Blocks 4 and 3, respectively, using the Deepwater Pathfinder.
In 2009, the independent engineering firm, Netherland, Sewell & Associates, Inc. (NSAI) estimated ERHC's unrisked prospective resources in JDZ Blocks 2, 3 and 4 totaled more than 336 million barrels of oil (P50). The NSAI report estimated ERHC risked prospective resources in JDZ Blocks 2, 3 and 4 totaled 135.5 million barrels of oil.
ERHC Energy has interests in six of the nine Blocks in the offshore JDZ. The Company has additional interests in the territorial waters of Democratic Republic of São Tomé & Príncipe known as the Exclusive Economic Zone (EEZ).
Cautionary Statement
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms on this Web site, such as "recoverable reserves potential," that the SEC's guidelines generally prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K. You may review our filing with the SEC at the following Web site: www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000799235.
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