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HOUSTON, May 1, 2013 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with
oil and gas assets in Sub-Saharan Africa, today announced the completion of the Company's rights offering, which was the first phase of a comprehensive funding strategy. The Company also announced the start of the next phase of fundraising with the expected filing of a Registration Statement on Form S-1 with the Securities and Exchange Commission (SEC) to facilitate the issuance of shares to new investors.
ERHC having terminated the escrow on the proceeds received under its rights offering, the subscription agent has distributed or credited shares of the Company's common stock purchased in the rights offering through the Depository Trust Company to those stockholders who exercised their basic and oversubscription rights. Basic subscription rights to purchase 21,594,206 shares of common stock were exercised. Additionally, all oversubscription requests, totaling 3,376,200 shares, have been fully satisfied in the rights offering.
With the subsequent filing of the S-1 registration statement, ERHC intends to pursue other fundraising possibilities. The options include registered direct offerings to new investors and convertible notes and other debt instruments. Concurrently, ERHC is continuing to work to farm-out a portion of the Company's assets in Kenya, Chad and the São Tomé and Príncipe Exclusive Economic Zone (EEZ) to spread the risk.
Net proceeds to the Company from the rights offering and other fundraising activities will fund specific exploration and development activities in the
Republics of Chad and Kenya, as well as general corporate purposes and working capital needs. ERHC's 2013 approved work plan for
Kenya Block 11A involves a Full Tensor Gravity (FTG) survey to help identify potential leads and prospects. A similar FTG survey is also planned in Chad.
Speaking last week at the 19th Western Africa Oil, Gas & Energy Conference 2013, held in Namibia, ERHC President and CEO Peter Ntephe detailed the Company's plans to pursue rift margin plays in Kenya and Chad similar to those that yielded significant discoveries to the east of ERHC's Block 11A in northwest Kenya.