ERHC Energy Inc. Intensifies Fundraising For African Exploration Programs
HOUSTON, Aug. 23, 2012 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, has announced the intensification of fund raising for its exploration programs in highly prospective acreages in East, Central and West Africa. ERHC is seeking finance from equity issuances to existing and new shareholders as well as from appropriate debt instruments and other arrangements.
To facilitate the fund raising, ERHC's Board of Directors has passed resolutions to amend the Company's Restated Articles of Incorporation to increase the number of authorized shares of Common Stock from 950 million to 3 Billion and to authorize the Company's Board to create and issue, from shares of preferred stock currently authorized, one or more classes or series of preferred stock. The increase in share capital and authority on preferred stock will be subject to approval by a Special Meeting of Shareholders of ERHC scheduled for October 9, 2012. The meeting will be held at 3.00 p.m. at the Renaissance Houston Hotel, 6 Greenway Plaza East, in Houston, Texas. Shareholders of record at the close of business on August 22, 2012 are entitled to vote their shares for or against the proposed amendments.
"Our work programs in Kenya, Chad and the Sao Tome and Principe Exclusive Economic Zone require substantial capital expenditures over the next few years, and the proposed amendments are intended to give the Company greater financial flexibility to realize the value of these highly prospective assets," said ERHC President and CEO Peter Ntephe. "Shareholder approval may make capital-raising easier for ERHC and enable the execution of pending work programs as well as more acquisitions, strategic alliances and other initiatives that are in the Company's and its shareholders' best interests."Proxy Statements will be mailed to shareholders of record on or about August 30, 2012. The Proxy Statement for the Special Meeting can be accessed electronically by visiting http://www.sec.gov/Archives/edgar/data/799235/000114036112038163/formdef14a.htm . ERHC will hold a conference call at 8:00 a.m. Central Time on Tuesday, August 28, 2012 to discuss third quarter 2012 financial results as well as the Company's plans for funding its upcoming exploration programs. Anyone interested in participating can access the call via phone or webcast. To access the call by phone, dial 888-669-0676 (US & Canada) or 201-604-0467 (international) at least 10 minutes prior to the call. To access the call online, click the link at ERHC's Investor Center, http://erhc.com/investors/ . ERHC holds oil and gas exploration interests in the Republic of Kenya, the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ). In the Republic of Kenya, ERHC has 100 percent of the interest in Block 11A, which is in the vicinity of Block 10BB where significant oil discoveries have recently been announced. In the Republic of Chad, ERHC has 100 percent of the interest in BDS 2008 and Manga, and 100 percent interest in half of Chari-Ouest Block 3. In the EEZ, ERHC holds 100 percent working interests in Blocks 4 and 11 with an option to acquire up to 15 percent working interests in two more Blocks. In the JDZ, ERHC holds working interests in Blocks 2, 3, 4, 5, 6 and 9.
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