The release follows a November update from CEO Nicolae Luca telling investors that despite the company's cooperation with probes mounted by the FBI and SEC, those continue to eat away at resources better used in developimng its Gulf of Guineau rights.
The Luca shareholder letter last week said the company is looking to exploit opportunities in the GoG as its steers toward budget decisions for its drilling program in 2007. He repeated that theme in Thursday's release.
"Though our successes were overshadowed at times by various challenges, this has been a year in which we made significant strides toward exploiting our assets in the JDZ," Luca said.
Shares on the Pink Sheets lagged yet another day on Thursday, with just over 409,000 traded in a range of $0.40 to $0.42. ERHE closed in the black on a gain of one cent to $0.42.
Here is the press release, courtesy of ERHC publicist Dan Keeney of Houston:
FOR IMMEDIATE RELEASE
ERHC Energy Inc. Reports Fourth Quarter and
Year End Financial Results
HOUSTON, December 14, 2006 – ERHC Energy Inc. (OTCBB: ERHE), an independent oil and gas company with assets in the Gulf of Guinea, today announced its results for the fourth quarter and year ended September 30, 2006.
As of September 30, 2006, ERHC reported cash assets totaling $41 million.
During the three months ended September 30, 2006, ERHC had a net loss of $1,039.670, compared to a net loss of $2,786,906 for the three months ended September 30, 2005. General and administrative expenses during the fourth quarter totaled $1,569,158, a reduction of $1.2 million compared to the same period a year earlier.
For the fiscal year ended September 30, 2006, ERHC had net income of $23.2 million, compared with a net loss of $11.3 million for the fiscal year ended September 30, 2005. The improvement in net income was the result primarily of a $30.1 million net gain from sale of participating interests in Blocks 2, 3 and 4 of the Joint Development Zone (JDZ) and a conversion of $5.7 million in debt to common stock and income tax expenses. For the year, general and administrative expenses were up 29 percent over fiscal year 2005, mostly due to an increase in legal costs.
“Though our successes were overshadowed at times by various challenges, this has been a year in which we made significant strides toward exploiting our assets in the JDZ,” said Nicolae Luca, acting chief executive officer. “With a solid financial position and strong relationships with strategic partners Addax Petroleum and Sinopec, we believe that we are positioned well for the coming year.”
ERHC Energy holds exploration rights in six JDZ blocks, consisting of a 22 percent participating interest in JDZ Block 2, a 10 percent participating interest in JDZ Block 3, a 17.7 percent participating interest in JDZ Block 4, and a 15 percent working interest in JDZ Blocks 5, 6 and 9.