HOUSTON, July 10, 2014 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued an update on the Company's progress. ERHC Shareholders: ERHC is pleased to present highlights of the Company's recent progress. São Tomé and Príncipe Exclusive Economic Zone (EEZ) Block 11
- Last week, ERHC President and CEO Peter Ntephe participated in ceremonies commemorating the 10th anniversary of the National Petroleum Agency of São Tomé and Príncipe(ANP-STP), during which it was announced that ERHC and ANP-STP have concluded the final terms for the Production Sharing Contract for EEZ Block 11.
- The PSC contains three exploration phases spread over an eight-year period. The work program in the first 4-year phase commits ERHC to purchase and re-process existing data and then carry out an aeromagnetic survey over the Block. ERHC is also committed to acquiring 2,500 kms of 2D seismic data during the first phase.
- If, after the completion of Phase 1, ERHC chooses to continue its exploration work program, Phases 2 and 3 will last two years each with a well commitment during each phase.
- As was the case in Kenya and earlier in the Joint Development Zone, management's intention is to bring a technically and financially capable operating partner onboard. The Company's discussions continue with several international oil companies about partnerships in EEZ Block 11. Some of those discussions are on the possibility of a 'right-to-earn' partnership where the operator commits to carrying only one aspect of the work program in return for a pre-determined interest in the PSC if the results of that aspect convince the operator to commit to the rest of the work program.
- The PSC for EEZ Block 11 will become effective in due course following the receipt of certain legislative and administrative approvals and the official Portuguese translation of the PSC.
- The Company has posted a presentation Mr. Ntephe delivered at the ceremony at http://erhc.com/presentations/. It provides an extensive overview of the prospectivity of EEZ Block 11, including evidence of what the Company's technical team believes could be a high quantity of hydrocarbon resources.
Republic of Kenya Block 11A
- The 2D seismic program covering approximately 1,000 line kilometers on Block 11A is nearing completion. BGP, the international seismic company, is carrying out the survey on behalf of the CEPSA and ERHC partnership on the Block.
- Based on analysis of the 2D seismic data combined with data from an airborne Full Tensor Gravity Gradiometry (FTG) survey conducted earlier, ERHC and the Block operator, CEPSA, will determine whether to acquire 3D seismic or proceed directly to drilling.
- Upon completion of the 2D seismic program, CEPSA and ERHC will have satisfied the minimum work program requirements for the initial two-year exploration period under terms of the Block 11A Production Sharing Contract.
- ERHC is in active discussions with potential partners who may be interested in farming into Block BDS 2008, which helps to spread the risk of exploration and is an important component in the Company's fundraising strategy.
- Additionally, ERHC is currently issuing a series of convertible notes as part of its previously announced comprehensive fundraising program. Proceeds from the issue are being applied to funding the Company's exploration work program in Chad, among other obligations.
- As announced earlier, ERHC has awarded a contract for acquisition, processing and interpretation of gravity/magnetic data of BDS 2008 in Chad to Bridgeporth Ltd.
- The agreement calls for Bridgeporth to fly 4,720 line kilometers over BDS 2008.
- The administrative approvals necessary for Bridgeporth to begin work are currently being pursued.
- ERHC holds a small stake in Oando Energy Resources (TSX:OER) as a result of a strategic investment in Exile Resources, which was later acquired by OER.
- Management is closely monitoring the Company's holding following consent of the Minister of Petroleum in Nigeria for OER's acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips.
- It is possible that if completed, the acquisition may have a positive impact on OER's market valuation and, therefore, ERHC's holding.
- You can learn more about Oando Energy Resources at http://www.oandoplc.com.
CONTACT: Dan Keeney, APR DPK Public Relations 832-467-2904 firstname.lastname@example.org