ERHC Energy Updates Shareholders; Sinopec To Drill On Aug. 20

A few minutes ago, ERHC Energy officially realesed a shareholder uypdate. The company says Sinopec plans to commence drilling around Aug. 20, and that Addax is also expecting to drill in August.

There are a few new details about the SEDCO 702 submersible units to be used by Sinopec, capable of drilling in water depths of 6,562feet and to 25,000 feet and as deeply as 25,000 feet.

Read on:

Chief Operating Officer Updates ERHC Energy Inc. Shareholders
Press Release
Source: ERHC Energy Inc.
On Wednesday July 29, 2009, 4:28 pm EDT
Companies:Erhc energy inc.
HOUSTON, TX--(Marketwire - 07/29/09) - ERHC Energy Inc. (OTC.BB:ERHE - News), 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 pleased to provide a brief update regarding the company's recent progress.

In recent months, ERHC's management has concentrated our time, energies and resources on developing our assets in the Joint Development Zone (JDZ). We expect August will be a history-making month for the Company as the operators of two JDZ Blocks in which ERHC has interests plan to commence exploratory drilling.

Sinopec Corp., the operator of JDZ Block 2, in which ERHC has a 22 percent interest, has authorized us to disclose that it plans to drill the Bomu Prospect using the SEDCO 702 semi-submersible drilling unit. Owned by Transocean, Inc., the SEDCO 702 is capable of operating in moderate environments and water depths up to 6,562 feet and drilling depths of up to 25,000 feet. While it is important to understand that drilling plans are subject to change, Sinopec predicts the SEDCO 702 might be available to begin exploration in JDZ Block 2 around August 20, 2009.

Addax Petroleum, operator of JDZ Block 4, in which ERHC holds a 19.5 percent interest, announced earlier this week that it also expects to begin exploratory drilling in August. Addax has arranged to take possession of the Deepwater Pathfinder in the weeks to come and begin a four-well drilling campaign starting with the Kina Prospect.

In JDZ Block 3, in which ERHC holds 10 percent interest, ERHC expects the Operator to make an announcement regarding significant and positive progress toward drilling in due course. The JDA has approved drilling at the Lemba Prospect.

These are exciting developments and everyone associated with these efforts has high expectations. Earlier this year, ERHC reported the findings of an independent assessment of the Company's unrisked and risked prospective resources prepared by independent engineering firm Netherland Sewell and Associates, Inc. (NSAI). The NSAI estimate of ERHC's prospective resources (P50) is summarized in the following table:



�
Block Unrisked Prospective Resources Risked Prospective Resources
Oil (MBBL) Gas (MMCF) Oil (MBBL) Gas (MMCF)
--------- --------- --------- ---------
JDZ 2 77,007 93,948 38,334 47,908
JDZ 3 27,343 32,953 8,751 10,543
JDZ 4 231,667 245,308 88,437 86,282
Total 336,017 372,210 135,523 144,733


As drilling in the JDZ approaches, we reiterate that that disclosures relating to drilling and other fundamental steps are initiated or authorized by the operator or the JDA as the case may be. ERHC, like the other parties in the JDZ, is bound to comply with this procedure.

Finally, work is well underway on ERHC's third quarter financial report for the period that ended June 30th. We have scheduled an Investor Conference Call on August 12, 2009 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). To participate, please dial 888-721-1403 (domestic) or 706-758-1074 (international) five to ten minutes before the call begins and reference the pass code 22567813.

A simultaneous live Webcast of the call will be available over the Internet and will be accessible by going to https://www.livemeeting.com/cc/erhcenergy/join and entering the Meeting ID: SQ8PR4 and Entry Code: kNs~f-5.

A replay of the call will be available from Wednesday, August 12, 2009 at 10:00 a.m. Eastern Time through August 19, 2009 by dialing 888-721-1403 (domestic) or 706-758-1074 (international) five to ten minutes before the call begins and reference the pass code 22567813. In addition, a replay of the Webcast will be available at www.erhc.com.

ERHC Energy remains focused on enhancing value for the benefit of its shareholders. We continue to count on your trust and support.

Sincerely,

Peter Ntephe
Chief Operating Officer

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A Director's Death Saddens ERHC Energy Management

The unexpected death of Clement Nwizubo, a Nigerian friend of the Sir Emeka Offor family and member of ERHC Energy's board of directors, has saddened management and stockholders. The promising young oil company with vast concessions in the Nigeria-Sao Tome and Principe Joiunt Development Zone thas attracted billions in investment to offshore Africa and the Gulf of Guinea, and Nwizubo had a bright future with us.

ERHC On The Move sends its deepest condolences to the Nwizubo family.

Here is the company's press release today ion the death of Clement Nwizubo of Nigeria.:

ERHC Energy Inc. Announces the Passing Away of Director Clement Nwizubo

HOUSTON, TX -- 07/10/09 -- 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, received information from family members of its director, Clement Nwizubo, that he passed away in June 2009. He had served as director of the Company from 2006 until his death.

"Mr. Nwizubo was an extraordinarily hardworking and dedicated professional. As a director of ERHC Energy, he conducted himself with the utmost integrity and highest regard for the interests of the Company's shareholders," said chief operating officer Peter Ntephe. "Clement served as a member of all of our Board Committees, and over the past few years provided great leadership and direction as Chairman of our Audit Committee. We will sorely miss his guidance, support and ebullient presence."

"I speak for all of our directors and employees when I say that we have lost a close friend. Our thoughts are with his wife and his family to whom we extend our deepest condolences," Mr. Ntephe concluded.

The Company will seek to add another director to replace Clement

.

Platt's Says Sinopec May Buy Out ERHC Holding

An article in the usually authoritative Platt's Oil & Gas Industry Newsletter says today that Sinopec may have plans to buy out the holdings of ERHC in Blocks 2 and 4 of the Nigeria-Sao Tome & Principe Joint Development Zone, where Chevron's first try hit oil in 2006 but the discovery was deemed non-commercial - possibly for strategic reasons.

Here's the Platt's article:

Sao Tome drilling gets underway after three-year break

Sinopec's acquisition of Addax Petroleum has provided a major boost for exploration activities in the Joint Development Zone, offshore Nigeria and Sao Tome and Principe, where so far results have been disappointing.

Efforts to speed up exploration in Block 2 came as state-owned Sinopec sought to clinch a C$8 billion takeover of Addax Petroleum Ltd., one of its partners in the JDZ.

While the deal will focus primarily on Sinopec's entry into the Kurdistan section of Iraq, Addax's prized acreage in the JDZ, as well as it other oil producing assets in West Africa, should not be forgotten.

So far, exploration in the JDZ has been slow, with only one well drilled since the 2001 agreement between Nigeria and Sao Tome. That well was drilled back in 2006 by Chevron, but the well did not prove commercial.

Sinopec plans to start drilling the first prospecting wells in the JDZ early next month when the Transocean SEDCO-702 deepwater rig arrives on block 2. Drilling also could begin in July on three wells in the Addax-operated block 4, starting with the Kina-1 prospect.

IHS Global Insight's analysts say once the Sinopec-Addax acquisition is complete, Asia's largest refiner will hold a 43% stake in block 2 and will immediately become the dominant player in Sao Tome and Principe's oil sector. If commercial reserves are discovered in the JDZ, then Sinopec will have considerable influence on how they are developed.

Industry sources also say the Addax deal may pave the way for Sinopec to buy out Houston-based ERHC's significant holdings in the JDZ, where it has interests in six of the nine blocks awarded by the Joint Development Authority, the body set up to oversee exploration.

China's expansion of its footprint across Africa has been fueled by a desperate appetite for resources in the country, the world's second-largest -- and fastest-growing-- consumer of oil.

Sinopec, who was up against rival Korea National Oil Co in the bidding for Addax, is keen to move on with its first foray into deepwater offshore drilling. Sources don't rule out an acquistion of ERHC's equity.

It is unclear whether waters off Sao Tome will ever produce oil in commercial quantities. Promising seismic data is no guarantee that there is really as much oil or gas as anticipated, and finding new hydrocarbons has become more difficult. Companies are drilling deeper and deeper, but as the price of oil increases, deeper drilling becomes more worthwhile.

But the government of Sao Tome and Principe are optimistic that substantial petroleum discoveries are forthcoming.
Until a few years ago the islands' only claim to fame were Marilyn Monroe postage stamps, and a key export crop, cocoa. That was until oil deposits were detected in the '90s

The former Portuguese colony has now become another test case for oil companies. Will it be plundered and overwhelmed by the discovery of black gold? Or can it avoid the paradox of plenty, and become a rarity: a small underdeveloped country ever to have found oil in large quantities, while still avoiding the resource curse.

Posted by Jacinta Moran on June 30, 2009 | Permalink