ERHC Energy Inc. Calls Response To Rights Offering 'Encouraging'
HOUSTON, Feb. 21, 2013 (GLOBE NEWSWIRE) -- In the latest in a series of interviews with ERHC Energy Inc. (OTCBB:ERHE) management, Vice President, Administration and Controller, Sylvan Odobulu, reported that the Company views response to its ongoing rights offering as 'encouraging.' ERHC is a publicly traded American company with oil and gas assets in Sub-Saharan Africa. The Company's rights offering expires at 5:00 p.m., Central Time, on Thursday, February 28, 2013.
Odobulu called the rights offering an initial step in ERHC's efforts to raise funds needed for oil and gas exploration in Kenya and Chad as well as for general corporate purposes and working capital needs.
"The rights offering (is) not the only step by any means," said Odobulu. "We have several other steps planned, including possible registered direct offerings to new investors. How much we seek from new investors will depend on the degree of take-up of the rights offering by our existing shareholders, and nothing is definitive at this point in time."The interview is posted online at http://erhc.com/articles/Odobulu-interview/. In late December, ERHC distributed on a pro rata basis one non-transferable subscription right for every three shares of common stock owned. Shareholders as of the close of business December 17, 2012 are eligible to receive subscription rights, each of which entitles the holder to purchase one share of the Company's common stock at a subscription price equal to $0.075 per share. The rights offering also includes an over-subscription privilege. ERHC previously announced plans to pursue rift margin plays in Kenya and Chad similar to those that yielded major discoveries in neighboring Uganda as well as recent large discoveries in Kenya to the east of ERHC's Block 11A. Kenya is at the intersection of the Cretaceous Central African rift system and the Tertiary East Africa rift system, a geological occurrence that can contribute to a high potential for hydrocarbons. In Chad, ERHC has delineated two focus areas situated directly north of numerous major discoveries on a rift margin along the Central African Shear Zone.
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