Thanks for the offer but I'll pass on moderating ... as ez as it might be since it's so quiet here. But, I kinda think it might start heating up when more get wind of the following presser out today:
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Chief Operating Officer Updates ERHC Energy Inc. Shareholders
HOUSTON, June 9, 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 issued the following update on Company activities from Peter Ntephe, chief operating officer.
To ERHC Shareholders:
I am happy to update the ERHC Energy family on the company’s recent progress.
Development of our assets in the Joint Development Zone (JDZ) remains the principal focus of this Company and we continue to concentrate our time, energies and resources on accomplishing that objective.
This spring has been a very busy period in the JDZ filled with blockbuster developments. We have been required by contract and regulation to keep a lot of the detailed information on evolving plans in the JDZ confidential. Only the operator and the Joint Development Authority (JDA) are allowed to make initial announcements on such matters. They decide when the time is right for relevant announcements. However, we have authorization to update you broadly on what has been happening.
First, drilling is very close – possibly less than six weeks away – in JDZ Block 2 in which ERHC holds a 22 percent interest. As previously disclosed, the JDA has approved the Bomu-1 Prospect as the first drilling location in Block 2. Based on the latest schedule, Sinopec might spud the well as early as July.
Addax is the operator of JDZ Block 4 in which ERHC holds a 19.5 percent interest. Addax currently plans to use the Deepwater Pathfinder to drill three wells in Block 4, starting with the Kina-1 Prospect. The second and third drilling locations will be determined based upon the Kina-1 exploration results. Addax expects to take possession of the Deepwater Pathfinder early in the third quarter, possibly as early as July.
Also, in the past, we have highlighted the Aban Abraham deepwater drill ship, so I wanted to update you on that as well. After enduring repeated delays on the ship, Addax has announced that it has cancelled the contract for the ship and it is no longer part of our plans for the JDZ.
There are also substantial and positive developments in JDZ Block 3 in which ERHC holds a 10 percent interest. Current plans are to spud the Lemba Prospect before the end of the third quarter. We expect significant announcements from the operator of the Block shortly.
The pace of development in the three blocks justifies our strategy of aligning with highly capable and experienced technical partners, Addax and Sinopec, to whom a great deal of credit is due. We could not be happier with the outcomes of their hard work and determination to make exploration in the coming months a reality.
We are exploring possibilities for strategic alliances with our technical partners on future initiatives in the JDZ and elsewhere. These discussions are at a very early stage, but we are hopeful that we will be able to extend upon our mutually beneficial partnerships.
A year ago we described our plan to independently grow the Company through acquisitions. The credit crisis considerably constrained our ability to secure funding for the planned acquisitions. The acquisitions were to be funded mainly from sources other than the Company’s current cash assets. We have resumed work on the acquisitions aspect of the growth strategy, looking at potential targets in North America and West Africa, but it is important to understand that we continue to proceed cautiously.
Several shareholders have expressed their strong objection to any acquisitions on the grounds that they will devalue the JDZ assets or weaken the Company by depleting current cash reserves. Be assured that we do not intend to jeopardize our financial position. Our approach to investment continues to be prudent rather than cavalier. It is important to ensure at all times that the Company’s ability to meet operational commitments and regulatory requirements are not adversely affected.
Growth through acquisitions is well advised. We are creating the subsidiary structures necessary to keep those acquisitions separate from the JDZ assets. While this has always been the intention, we hope that specifying it clearly here will allay the fears of those shareholders who oppose acquisitions because they do not want the JDZ assets to be thereby ‘diluted’ or ‘devalued.’
As drilling gets closer, we are making plans to re-intensify delivery of the ERHC message to the wider investment community. Vice President Corporate Development, David Bovell, is slated to present tomorrow at the Growth Company Investor Show in London. He will give an overview of the Company's assets, the NSAI estimates of our prospective resources and the revised growth strategy. We are tying revamp of market outreach to the commencement of drilling in the JDZ so that the message we deliver has greater potency and the resources committed to the effort are optimized.
These are exciting times for the ERHC Energy family, given the fast-paced developments in the JDZ where our core assets are located. We are closer than we have ever been to finally actualizing those assets after years of hard work and perseverance. I thank you all for your continued interest in the Company and your trust and support.
If you have questions, please submit them to Dan Keeney, our investor relations representative, at dan@dpkpr.com.
Sincerely,
Peter Ntephe
Chief Operating Officer
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