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ERHC Energy Increases Stake in Exile Resources

By on July 20, 2011

ERHC Energy Inc,  a publicly traded American company with oil and gas assets in West Africa, today announced it has increased its stake in Exile Resources (www.exileresources.com), a Canadian independent, to approximately 7.35 percent. Exile trades on the Toronto Stock Exchange’s Venture Exchange under the trading symbol ERI.

“While talk of a takeover approach is premature at this stage, ERHC’s intention is to gain the ability to participate in decision-making and explore synergistic partnerships that would be value-enhancing to our respective shareholders,” said ERHC President and CEO Peter Ntephe. “ERHC is particularly interested in Exile’s carried interest in the Akepo field in the Niger Delta, which is expected to begin producing later this year or early in the next.”

The Akepo field is located in the shallow waters of the southeastern area of Nigeria in OML 90. Exile Resources has 10 percent equity and up to a 17.5% economic interest in the field, with Oando Petroleum and Exploration Company carrying its costs. Sogenal Ltd Oil and Gas Company is the operator of the field.

The Akepo-1ST discovery is expected to produce between 2,500 and 3,000 barrels of oil per day when production begins. According to an Appraisal Report as of December 31, 2010 on the Akepo Field prepared by DeGolyer and MacNaughton Canada Limited, the estimate of net reserves ascribed to Exile are: 39Mbbl light crude and 22MMcf of natural gas on a proved reserves basis; 239Mbbl light crude and 179MMcf of natural gas on a total proved plus probable reserves; and 835Mbbl light crude and 669MMcf of natural gas proved plus probable plus possible reserves.

Earlier this month, ERHC signed a production sharing contract with the Republic of Chad on three oil blocks. The new interests include 100 percent of Block BDS 2008 and Manga, and a 50 percent interest in Chari-Ouest III. ERHC has released the sizes of each of the three blocks, noting that the new interests roughly double the Company’s exploration acreages and establish the Company as one of the largest holders of acreages among the independents operating in Africa:

  • Chari-Ouest III: 4,500 square km, equal to 1,111,974 acres
  • Manga: 6,477 square km, equal to 1,600,501 acres
  • BDS 2008: 16,360 square km, equal to 4,042,644 acres

ERHC also holds working interests in six Blocks in the Nigeria-São Tomé & Príncipe Joint Development Zone (JDZ), including JDZ Blocks 2, 3 and 4 which are operated by ERHC’s technical partners Sinopec Corporation and Addax Petroleum. Furthermore, ERHC holds 100 percent of Blocks 4 and 11 of the São Tomé & Príncipe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two other EEZ Blocks.

About ERHC Energy

ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in West Africa and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors and employees, and to sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production. For more information, visit www.erhc.com.

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