ERHC's Dan Kenney Responds To Ledbetter Charges

ERHC Energy's p.r. contractor, Dan Keeney, has responded to publication of Jim Ledbetter's charges without addressing any of the particulars. The company was unavailable for comment at the time the story was posted before dawn on Wed., Jan 13, and after midnight on Jan. 14.


Here is his comment:



Date: Wed, 13 Jan 2010 09:52:45 -0600
From: "Daniel Keeney, APR"

Joe:


Your post the other day stated that "the company was unavailable for comment," which is strange because my contact information is pretty ubiquitous and nobody tried to contact me prior to posting your wild accusations about ERHC. It is absolutely astonishing to me that you did not contact the company before publishing allegations of illegal activities - not once but twice now. You clearly have an agenda to harm the company without regard to the veracity of your supposed sources of information.


Sincerely,



Daniel Keeney, APR

DPK Public Relations

With respect to any "agenda" I might have:

Since I fought the federal allegations from the beginning and frequently argued for the copmpany's innocence with respect to charges the FBI proffered to the Federal Grand Jury in Dallas, it seems clear to me that ERHC On The Move has no malicious agenda. In fact, we sent a very clear positive signal to investors when the share price was $0.12 in January 2009, helping to spark a very strong period of share price growth from which the company and shareholders alike benefitted enormously. We didn't get any thank-you note on that occasion, either.

The company never bothered to thank us for the many efforts we made to clear their name - from contacting numerous other journalists who had attacked it to speaking with the US Attorney who bnrought the case - so we find it quite easy to believe they turned a cold shoulder to Jim Ledbetter as well. I note that the fact Jim is homeless, alone and possibly suicidal has not elicited any sympathy. At this point, they have not even offered the man crocodile tears.

As for his charges with respect to Godsonic, they were widely debated on other investor Websites. we don't recall the company responding to those concerns, either. However, in our estimate the charges may have merit and deserve an airing.

With Fed Probe Behind It, ERHC Faces New Charges From Ledbetter

The FBI has returned all the documents it seized from the company's Houston headquarters as part of the probe of Rep. William Jefferson that sent the former Louisiana congressman to federal prison, it said Tuesday. ERHC On The Move had long reported that the investigation was a long and fruitless exercise based on no more than a newspaper clipping concerning the ex-congressman in its files.

Other pundits repeatedly claimed the company was deeply implicated by the Jefferson probe because a former director who became a government informant was taped by the FBI as she met with Jefferson on behalf of another company.

The probe cost investors tens of millions of dollars in share price declines, but the Justice Dept. was long unwilling to say it had no evidence to proceed. Indeed, the charges crippled the company's stock price growth at the most critical time in its existence, just after it was awarded potentially lucrative concessions in several blocks of the Nigeria-San Tome & Principe Joint Development Zone (JDZ) and was searching for partners to help develop the concessions.

It is believed by many that major oil companies, including ExxonMobil and ChevronTexaco, who had competing bids and claims in the Gulf Of Guinea, used their considerable influence with the Bush Administration to get ERHC indicted on charges that were apparently groundless.

Even as the documents were returned, however, an admittedly broke and inebriated former technical director for ERHC Energy told ERHC On The Move that company CEO Peter Ntephe bribed Godsonic, a Nigerian company with strong political connections, with a payment of $245,000 that was purportedly intended to coerce Godsonic to sign a document it was already required to sign, with the implication that the payment went to Nigerian officials. The payment, reported in company SEC filings, excited considerable controversy on investor boards at the time.

Ledbetter also charged that his lawyer was bought off by the company with a $50,000 payment that he said was made by a Nigerian company a month after he gave up his lawsuit. He said the unnamed company had opened for one day to make the payment and closed the next day. He said ERHC spent $1.5 million on four attorneys who fought the Ledbetter lawsuit.

He also said the company's exploration of five wells in Block 4 had failed to produce evdence of oil and gas in commercial quantities. The company announced the end of drilling last week. It is pursuing other opportunities in the Nigerian energy business, it said in an earlier statement.

Ledbetter says he is living in his car and close to committing suicide. "My date of death may be today or tomorrow," he responded when asked during an early-morning telephone call for his date of birth to verify his identity. Calls to Houston police and a national suicide hotline failed to locate Ledbetter.

The FBI probe may not have taken the Godsonic payment into consideration, given its apparent occurrence long after the May 2006 seizure of the company's documents.

Here is the company's press release:

Federal Investigators Return Documents of ERHC Energy Inc.

HOUSTON, January 12, 2010 – 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 announced the return of all the documents taken by federal investigators from its corporate headquarters in May 2006. A total of 106 boxes containing original archival records from the Company’s inception until 2006 have been returned.

“This is a positive start to a new year in which the Company will be targeting several benchmarks in its strategies toward corporate growth and the enhancement of shareholder value,” said Peter Ntephe, chief operating officer with ERHC.

Broke, Alone And Desperate, ERHC's Ledbetter Is At Brink Of Suicide

Somewhere in Houston this morning, former ERHC Energy technical engineer James Ledbetter is alone, cold, living in his car, angry and a little drunk.

"I am just so angry," he told us in a 20-minute phone call at 4:37 AM local time.

"Peter Ntephe, the CEO of ERHC Energy, violated the Federal Corrupt Practices Act by making a $240,000 payment to Godsonic to sign off on a document that they were already required by law to so sign off on." He said he protested to Ntephe, to the company's Controller, Sylvan Odobulu, to Howard Jeter, the former U.S. Ambassador to Nigeria who sits on ERHC Energy's board, and the board itself, all to no avail. Instead, he said, on Dec. 17, 2008, then Acting CEO Ntephe "walked into my office and said, 'We need to talk.'"

"I thought something good was going to happen," he said.

Instead, Ntephe introduced a lawyer and fired him, saying "We're not going to continue your employment." He wouldn't answer any questions about why, Ledbetter said, and had an armed guard escort him from the office to his home, where any ERHC documents he had were seized.

"I was not given any unemployment insurance, severance payment or anything," Ledbetter said. On the telephone line I heard a rough, broken sob. Ledbetter said he spent $5,000 on a lawyer to get unemployment, and a month later gave up. ERHC had fought back with four lawyers, he said.

"They paid $1.5 million in two months to challenge me," he said. "One month after I gave up, my lawyer received a $50,000 payment from Nigeria." Friends told him that to accomplish that, "A Nigerian company opened up for one day, for the payment, and closed the next day." None of the payment went to Ledbetter.

Now he's lost his wife and his home in a divorce that ended four months ago. He said he feared that this conversation would cost him everything else he had. Then he went off on a tangent.

"During exploration, they found a lot of oil," he said. "They found gas. But it wasn't enough to develop."

To ascertain that it was Ledbetter, who had called us shortly after his firing, we asked his date of birth. He gave it to us, and then said, "My date of death may be today or tomorrow."

His last words were, "Nigerians don't give a sh-t about other people."
There was a click and the line went dead.

The Houston Police Dept. told us that without an address for Ledbetter, they were unable to help. A national suicide hotline promised to try to get Ledbetter on the phone after a Houston police dispatch supervisor named Wagner said there was nothing they could do with a name, age and phone number. They suggested I call the FBI in Washington.

I told Ledbetter during our conversation that he was not a lot worse off than many ERHC investors. I urged him to get food stamps like I do. When I called back after he hung up, I urged him to get in touch with the police and get help. I gave him the number and I offered to take him in for a while if he would promise not to drink and could get himself to Florida.

He didn't call back. He didn't pick up when I called again.

The company was unavailable for comment.

No Oil, But Plenty Of Money For New Investments

After spending a small fortune trying to find oil without success in the Gulf Of Guinea, a Saturday January 9 report says ERHC Energy is going to explore the possibility of joint ventures with other firms in the oil and energy business in Nigeria. This comes as the company also announced the end of drilling in Block 4, where five wells drilled over the past four months have not yielded any petroleum.

Here is the story from LeadershipNigeria:

ERHC Energy Inc. Pursues Investments In Nigeria Oil And Gas Industry

Written by By Indo Ali, Abuja with Agency Report
Saturday, 09 January 2010 00:23

A publicly traded American company with oil and gas assets in the Gulf of Guinea off the coast of West Africa, ERHC Energy Inc, has announced that negotiations are underway on potential investments that would expand the company's presence in Nigeria's oil and gas industry.

ERHC has signed a non-binding memorandum of understanding (MOU), with Circle Ltd. and Excel Exploration and Production Limited to negotiate investment in, and acquisition of working interests in the Eremor Marginal Field (OML 46). The Eremor Field, which is located in shallow water off-shore Nigeria, was discovered in 1978.

The discovery well, Eremor-1, encountered three oil and gas zones, the most prominent of which is the D-03 reservoir with 43 feet of net oil sand. It was re-entered for testing in 2005 with the D-03 reservoir testing 2,200 barrels per day of oil with API gravity of 220, a low gas to oil ratio and no water. Excel was awarded a 100 per cent interest and operatorship of Eremor in 2003.

ERHC, through its locally incorporated subsidiary, ERHC Energy Nigeria Limited, has also entered into a non-binding MOU with WellTest Integrated Services Limited to negotiate the acquisition of a controlling equity interest in WellTest. The company provides well testing, production engineering and procurement services to Nigeria's oil and gas industry.

To coordinate the company's business development in the Nigerian and West African oil and gas industry, ERHC has opened its Nigeria liaison office at Oguda Close, Maitama, Abuja. The company's wholly owned subsidiary ERHC Energy Nigeria Limited operates the liaison office.

"With considerable progress being made in the ongoing exploration campaign of our oil and gas interests in the Nigeria Sao Tome and Principe Joint Development Zone (JDZ), this is the right time to accelerate business development activities elsewhere," said Peter Ntephe, Chief Operating Officer of ERHC. "These opportunities will begin the process of diversifying our portfolio of assets and accelerate the timeline for producing revenues. We are also investigating other exploration and production opportunities and will report progress to stockholders at the earliest appropriate time."

The MOUs are non-binding and the completion of the transaction is subject to, among other things, negotiation of a definitive agreement, satisfactory due diligence and adequate financing.

The parties expect to enter into a definitive agreement and complete the transactions, subject to satisfaction of closing conditions and the receipt of all necessary regulatory and other approvals, including board approvals.

A JV Opportunity Too Good To Pass Up

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The devices on display use oxyhydrogen (the product of small amounts of water decomposed by simple electrolysis) instead of or as a supplement to other fuels at a greatly reduced cost for technology development and offer substantial savings on fuel (see HHOgames.com for more). We seek the funding of these businesses, in which we have no investment, to advance the current use of hydroxy and hydrogen devices in novel applications with very strong revenue potential. HHO Games & Exposition does not seek funding.

HHO Games & Exposition inventoirs, builders and developers may be interested in receiving capital from a variety of conventional sources, including direct and/or equity investment and loans. We do not take a finding fee or any other compensation from industry representatives. Contact Joe Shea at 941-753-1136 or visit hhogames.com for more information.

We invite you to view a 28-minute video featuring some of the Taiwanese HHO devices investors can help develop in America. The video may be tedious - until, about 25 minutes into it - you see a man place his hand on a thin metal pipe that is directing a multi-thousand degree flame for toxic waste incineration. As a gas, when HHO burns it produces zero pollution and no radiant heat.

ERHC Expands Into Nigerian Coastal Waters

A press release last week told of ERHC Energy's creation of a Niogerian office for exploration with partners of the country's potentially righ coastal waters. Here's the release:

ERHC Energy Plans To Expand In Nigerian Oil and Gas Industry
Published: 24-Nov-2009

ERHC Energy, a company with oil and gas assets in the Gulf of Guinea off the coast of West Africa, has revealed that negotiations have commenced on potential investments to expand its presence in Nigeria's oil and gas industry.
ERHC has signed a non-binding memorandum of understanding with Circle and Excel Exploration and Production to negotiate investment in and acquisition of working interests in the Eremor Marginal Field.

The Eremor Field, which is located in shallow water off-shore Nigeria, was discovered in 1978. The discovery well, Eremor-1, encountered three oil and gas zones, the most prominent of which is the D-03 reservoir with 43 feet of net oil sand. It was re-entered for testing in 2005 with the D-03 reservoir testing 2,200 barrels per day of oil with API gravity of 220, a low gas to oil ratio and no water. Excel was awarded a 100% interest and operatorship of Eremor in 2003.

ERHC, through its locally incorporated subsidiary, ERHC Energy Nigeria, has also entered into a non-binding MOU with WellTest Integrated Services to negotiate the acquisition of a controlling equity interest in WellTest. The company provides well testing, production engineering and procurement services to Nigeria's oil and gas industry.

To coordinate the company's business development in the Nigerian and West African oil and gas industry, ERHC has opened its Nigeria liaison office at Oguda Close, Maitama, Abuja. The company's wholly owned subsidiary ERHC Energy Nigeria operates the liaison office.

Of course, the billion-dollar question is whether Chevron's decision to abandon Block 1 was justified by the failure to find oil in the blocks just explored by ERHC Energy and its partner, Sinopec, which has swallowed our former partner Addax Petroleum whole.

Did all of the investors (admittedly, I made $3,000 on my last trade last January and only have 100 shares now) who stuck with ERHC through thick and thin over the past six-to-10 years end up with the short end of a dry stick? What an irony, if so!

I made plenty of money trading ERHC at all kinds of prices but I always believed there was oil in Blocks 2, 3 and 4 and that we would find it.

In the back of my mind I harbored suspicions that the Nigerian government itself had devised and perpetrated a huge fraud on oil giants and oil pygmies and their investors alike. Now that suspicion has moved to the front, yet it's hard to let go of the idea there's lots of oil there for those lucky enough to find it.

But there were tremendous "flame wars" against anyone, including myself, who raised questions about the prospects of a big find or even the completion of the JDZ oil-sharing agreement. The supposed "smart money" in Texas and Louisiana that swore by and at the company are now probably counting the money they made pumping the stock as they sold it. Some no doubt are counting their losses.

Well, c'est la vie.

Drilling Finished In 2 Wells, ERHC Says, But No News Yet

ERHC Energy released an update on its drilling in the JDZ today, but was unable to say whether significant deposits of oil were struck. That news - or the absence of it - will probably come soon.

Here is the press release, which pretty much speaks for itself:

ERHC Energy Inc. Updates Shareholders on Drilling in the JDZ

© Marketwire 2009
08.10.2009 13:15:02

(live-PR.com) - HOUSTON, TX -- (Marketwire) -- 10/08/09 -- 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, today issued the following update on Company activities from Peter Ntephe, chief operating officer.

To ERHC Shareholders:

I am happy to report that drilling is progressing on schedule in the Joint Development Zone (JDZ) Blocks in which ERHC has interests.

Addax Petroleum Corporation ("Addax"), the operator of JDZ Blocks 3 and 4, has finished drilling a well at the Kina Prospect in Block 4 in which ERHC has a 19.5 percent interest. Based on the early analysis done to date, the well encountered hydrocarbons, but a detailed evaluation of information from the well has only just commenced so it is far too early for any conclusions to be drawn on the extent and quality of the hydrocarbon system encountered. A comprehensive analysis that incorporates the drilling results into relevant geologic and fluid models will now be carried out.

Following the initial drilling operation in Block 4, the Deepwater Pathfinder has moved to the Lemba 1X well location in JDZ Block 3 in which ERHC has a 10 percent interest. Exploratory drilling at Lemba 1X commenced yesterday. We estimate it will take approximately five weeks, although the actual timing is dependent on many factors, such as drilling penetration rate, fluids encountered, borehole stability and equipment maintenance, among others.

Once done with the Lemba 1X well, the Deepwater Pathfinder will move back to JDZ Block 4 to drill two additional wells. The specific drilling locations of these additional Block 4 wells will be determined in due course.

Sinopec JDZ Block 2 Limited ("Sinopec"), the operator of JDZ Block 2 in which ERHC has a 22 percent interest, has also finished exploratory drilling at the JDZ Bomu-1 well location. Based on the early analysis done to date, natural gas is discovered, but again a detailed evaluation of information from the well has only just commenced so it is far too early for any conclusions to be drawn on the extent and quality of the hydrocarbon system encountered.

This is an exciting time for the ERHC family. When this initial drilling campaign is completed, a total of five wells will have been drilled. Each well will be evaluated using several standard oilfield methods and the rock properties and reservoir fluids will be measured and evaluated.

As we stated previously, the purpose of this process is to test scientific conclusions and gather additional information. The information from these wells is helping the exploration team understand the geology and hydrocarbon potential of the various prospects being drilled. Perhaps more importantly, it is helping us understand the prospectivity of the entire area. This is a highly technical process that takes considerable time. The parties are working to ensure that operations are conducted to the highest industry standards. The focus is quality of work put into each well, not undue haste.

We are as excited about getting drilling results as the investment community is. In accordance with the practice in the JDZ, accurate, material information on the progress in the JDZ Blocks will emanate from the operators or the Joint Development Authority. ERHC will publish such information in a timely manner in accordance with our contractual and regulatory obligations.

The operators will determine when it is appropriate to release the drilling results. Sinopec has announced that its drilling results might be released in the fourth quarter with a caveat that such release is contingent upon numerous factors. Addax is expected to provide guidance in due course on the release of its results.

We appreciate the support of our shareholders and share their excitement. If you have questions, please submit them to Dan Keeney, our investor relations representative, at dan@dpkpr.com : mailto:dan@dpkpr.com.

Sincerely,

Peter Ntephe

Chief Operating Officer

Sinopec Buys 100% of Addax, But 0% of ERHC Energy

Well, we won't get any prizes for perspicacity, because we missed the news completely, but Addax, our partner in several blocks in the Joint Development Zone, has been acquired by our other partner in the JDZ, Sinopec.

Here is the press release:

Sinopec Acquires 100% of Addax Petroleum's SharesAddax Petroleum Corp.|Tuesday, October 06, 2009

Sinopec International Petroleum Exploration and Production Corporation is pleased to announce that effective October 2, 2009, its indirect wholly-owned subsidiary, Mirror Lake Oil and Gas Company Limited ("Mirror Lake"), acquired all of the common shares of Addax Petroleum Corporation ("Addax Petroleum") not taken up and paid for under the offer for all of the issued and outstanding common shares of Addax Petroleum dated July 9, 2009, as extended, made by Mirror Lake (the "Offer"). Mirror Lake acquired such additional common shares pursuant to a compulsory acquisition under section 206 of the Canada Business Corporations Act. Mirror Lake now owns 100% of the issued and outstanding common shares of Addax Petroleum.

The common shares of Addax Petroleum have been delisted from the Toronto Stock Exchange and the London Stock Exchange effective October 5, 2009.

Now the question arises, Why haven't they bought us? The answer may be that ERHC Energy, with Nigerian ownership that was a prerequisite for its original bids and is a U.S. based corporation, might be an impractical, impolitic or problematic purchase - or all of those - for Sinopec, which is a state-owned Chinese oil major.

China's CNOOC In Bid To Buy A Sixth Of Nigerian Oil Reserves; Gains For ERHE Seen

The news tickers are chattering happily away this morning with a Reuters story that China's giant overseas financial arm, CNOOC, plans to buy uo to one-sixth of Nigeria's oil reserves in one fell swoop for up to $30 billion.

There is no word yet on whether the company has its eye on ERHC Energy reserves in the Gulf of Guinea, where ERHC is partnered with Sinopec, also a state-owned company not quite as large as CNOOC and traded publicly on the NYSE.

There will be enormous political fallout from this news, and it is likely to affect the next presidential election and state elections in the interim. Nigerian politicians have relied on being able to siphon and embezzle billions from their various state oil entities, and the CNOOC deal could foreclose their access to some of that lucre.

At the same time it might provide Nigeria's leaders a steady supply of reliable funds to begin the hard work of buildng a power infrastructure, for instance, which they have avoided for a century.

In any event, it represents yet another challenge to America's hunt for foreign oil to ensure its own reserves are not tapped until petroleum fields around the world begin to run dry. Some may call it America's failure. not its challenge.

The real surprise, given that China's interest in Nigerian oil both on land and at sea has been widely known, is that so much of its oil remains uncommitted now. The country has been selling off rights at a fast pace to a welter of developers ranging from two-man wildcats to the likes of ExxonMobil, Chevron Texaco and European firms.

At the practical level, interest on this scale ought to move up the falling price of ERHE shares, which have declined from a recent high of $0.89 ro $0.70. We suspect there will be a gain of at several cents in today's trading.

Here is the Reuters take:

LONDON/BEIJING, Sept 29 (Reuters) - Chinese state-owned oil company CNOOC is in talks with Nigeria to buy large stakes in some of Africa's richest oil blocks, the Financial Times reported on Tuesday.

The value of the potential deal was not disclosed, but some details suggested a figure of around $30 billion, the FT said.

It said CNOOC, China's No. 3 oil and gas producer and an offshore specialist, was bidding for 6 billion barrels of oil, equivalent to one sixth of the proven oil reserves in Nigeria, which vies with Angola to be Africa's largest oil producer.

Yang Hua, president of CNOOC Ltd., the listed arm that has been the main vehicle for the firm's overseas investment, declined to comment.

"You know my standard answer - no comment," Yang told Reuters when asked if he was aware of the FT report.

CNOOC's spokesman Xiao Zongwei said he had never heard of the development reported in the paper. The FT said the deal was detailed in a letter it had seen from the office of Nigeria's president, Umaru Yar'Adua, to CNOOC's representative, Sunrise.

There was no immediate comment from the Nigerian presidency or from Nigerian state oil firm NNPC. Shares in CNOOC Ltd rose 2.7 percent in Hong Kong, slightly exceeding a rise in the benchmark Hang Seng index.

If the bid is successful, it could place the company in competition with major Western oil groups like Total, Royal Dutch Shell, Chevron and ExxonMobil , which operate the 23 blocks under discussion, the newspaper said.

"The industry is aware locally that there is an interest from Chinese national oil companies to acquire oil blocks in Nigeria," an oil industry source said. "It is not a secret. The quantity cited by the FT is however surprising."

BRINKSMANSHIP?

Analysts said the leak appeared to be an effort to put pressure on long-standing Western oil partners in Nigeria at a time when relations with the industry are strained.

"For some time relations between the government and the international oil companies (IOCs) have been difficult, first over funding of joint ventures, over arrears, reviewing the terms of production sharing contracts (PSCs)," said Antony Goldman, head of London-based PM Consulting and a Nigeria expert.

"Some of these licences have come up for renewal and the government feels they are worth more than the IOCs are prepared to pay to renew them," he told Reuters.

So far the largest investment CNOOC has made in Nigeria was a $2.69 billion stake purchased in 2006 in deepsea oil block OML-130, which operator Total said in March had started pumping oil to reach 175,000 barrels per day output during the summer.

Tanimu Yakubu, the Nigerian president's economic adviser, said in the FT report that China may not secure "anything close" to the 6 billion barrels it is seeking, saying: "We want to retain our traditional friends."

He added, however, that the Chinese "are really offering multiples of what existing producers are pledging (for licences). We love to see this kind of competition."

Peter Hitchens at Panmure Gordon & Co also said the reserves that could change hands would be smaller than 6 billion barrels.

"Although we believe that this deal is unlikely and that the actual reserves sold could well be smaller, it highlights the desire of Chinese oil companies to secure significant reserves in Africa," Hitchens said in a note.

In a recent Chinese acquisition of Nigerian oil assets, No. 2 oil firm Sinopec Group paid $7.24 billion for Swiss oil and gas firm Addax, which operates in Nigeria and other African states.

(Reporting by Nick Tattersall in Lagos, Randy Fabi in Abuja, Jan Harvey in London, Chen Aizhu in Beijing and Sui-Lee Wee in Hong Kong; Editing by Lincoln Feast and Anthony Barker) Keywords: NIGERIA OIL/ =2 (jan.harvey@thomsonreuters.com; +44 207 542 7744; Reuters Messaging: jan.harvey.reuters.com@reuters.net) .

A Triumph Over Adversity Brings Offor To The Brink of Greatness

Drilling for oil in the Gulf of Guinea's Nigeria-Sao Tome and Principe Joint Development Zone has begun, ERHC Energy announced today, bringing to a close a long, difficult and contentious struggle for concession rights in the JDZ that often threatened to derail the entire company.

Today's events are nothing short of a grand tribute to the vision and the determination of Sir Emeka Offor, the Nigerian multimillionaire whose Chrome holding company now controls 51% of ERHC Energy shares. He overcame huge political and financial obstacles - including numerous threats to bankrupt and jail him - to emerge triumphant today at the company's critical moment in history.

With the federal grand jury probe in Dallas apparently now behind it - the company was not a factor in the Rep. William Jefferson case, as many pundits had proposed - the greater moment of truth awaits: Will there be oil in Blocks 2 and 4, the two zones believes to be among the richest prizes in petroleum history, albeit far under the sea.

While the price of ERHE was down a cent or two today from its morning high of $0.88, an announcement on the company's success or failure in the two blocks being drilled will either send the shares zooming into the stratosphere or down into the deepest trenches of the sea.

On behalf of all who have believed in, studied, written. srgued and read about this stock with me since ERHC on the Move began in 2003, I salute those who have made it to the finish line, and Sir Emeka Offor, whose daring and vision made your profits possible.

Regrettably, due to the impact of the recession, I came to the end of our journey with 100 shares, purchased at $0.225, and a profit of $54. Despite the fact that this column involved thousands of hours of work over the years, and cost me a fortune when I was ethically forced to divest my shares at the lowest price available when a statement I made proved to be costly to readers, the effort was worth it for what it taught me about the industry, Africa, and competition in the business world. I will always remember the excitement of the long struggle to reach this day. May God bless and keep all of those who have arrived here safely, and provide His solace to all who fell along the way.

Here is the company's press release upon this historic occasion:

ERHC Energy Inc. Technical Partner Commences Exploration Campaign

Aug 26, 2009 11:52:32 (ET)


HOUSTON, TX, Aug 26, 2009 (MARKETWIRE via COMTEX) -- ERHC Energy Inc. (ERHE, Trade ), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, today announced that exploratory drilling is underway in Block 4 of the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ) in which ERHC has a 19.5 percent interest. The Company's technical partner, Addax Petroleum Corporation, the operator in JDZ Block 4, has announced the spudding of the Kina Prospect.

"The start of drilling in our JDZ Blocks represents an important step toward realizing the Company's vision after more than a decade of hard work," said Peter Ntephe, chief operating officer with ERHC. "We are very excited that we are on the cusp of realizing the value of a portion of ERHC's portfolio of oil and gas assets in the Gulf of Guinea."

Another significant development is the change of operator in JDZ Block 3, in which ERHC has a 10 percent interest. Addax has announced that it has acquired the 51 percent interest formerly held by Anadarko and will be the operator of JDZ Block 3.

The drilling campaign is being conducted using Transocean's Deepwater Pathfinder, a fifth generation dynamically positioned deepwater drilling rig capable of drilling in water depths up to 3,048 meters. Addax plans to drill the "Kina" and "Lemba" prospects in JDZ Blocks 4 and 3, respectively, using the Deepwater Pathfinder.

In 2009, the independent engineering firm, Netherland, Sewell & Associates, Inc. (NSAI) estimated ERHC's unrisked prospective resources in JDZ Blocks 2, 3 and 4 totaled more than 336 million barrels of oil (P50). The NSAI report estimated ERHC risked prospective resources in JDZ Blocks 2, 3 and 4 totaled 135.5 million barrels of oil.

ERHC Energy has interests in six of the nine Blocks in the offshore JDZ. The Company has additional interests in the territorial waters of Democratic Republic of Sao Tome & Principe known as the Exclusive Economic Zone (EEZ).

ERHC Rival Hyperdynamics Soars

After some key hires and a live teleconference, ERHC Energy's friendly rival in the West African waters has soared more than $0.50 in three days.

The stock had been trading as low as $0.53 just 10 days ago, and hit $1.10 a few minutes ago, up from $0.93 at the open. It had closed on Monday at $0.73, and at $0.62 last Wedneday.

Along with ERHE FEEC, it is one of the three smaller oil securities we have watched and traded over the past 6 years with intermittent success.

The ciompany on Aug. 11 announced significant new personnel additions, including geology and marketing experts from BP and Amoco, respectively.

A recording of the HYD teleconference and several newer press releases are available on the Hyperdynamics Website.

FEEC has also moved over the past two months, from a low of about $0.22 to around $0.36 today - a good 50% move for the mathematically challenged.

None, however, can compare to ERHE's spectacular 600%+ gain since January, when it was selling at $0.11 and this analyst strongly recommended a buy.

Here is the Aug.10 release on new hires:

Hyperdynamics Expands Its Technical Staff With the Addition of Former BP Chief Geologist David Roberts and Exploration Manager Edward Shaw

Press Release
Source: Hyperdynamics Corporation
On Monday August 10, 2009, 10:52 am EDT

HOUSTON, Aug. 10, 2009 (GLOBE NEWSWIRE) -- Hyperdynamics Corporation (the "Company") (NYSE AMEX:HDY) announced today that it continued to expand and strengthen its geological and geophysical (G&G) technical staff with the addition of Dr. David Roberts as Senior Geological Advisor and Mr. Edward Shaw as Exploration Manager.

Related Quotes
Symbol Price Change
HDY 1.30 0.00


{"s" : "hdy","k" : "c10,l10,p20,t10","o" : "","j" : ""} Dr. David Roberts is a recognized world leader in continental margin research and deepwater frontier areas. As a senior explorationist with BP from 1981 to 2003, Roberts held numerous high profile positions including, Distinguished Exploration Advisor, Global Exploration Advisor, and Chief Geologist. Prior to joining BP, Dr. Roberts was with the Institute of Oceanographic Science (IOS) in Wormley, UK. Dr. Roberts is the founder and publisher of Marine and Petroleum Geology and an instructor for many influential national and international geo-science committees such as the NERC and AAPG. Roberts is a nonexecutive director of Premier Oil, Getech Plc and Medserv Plc.

Mr. Edward Shaw is a geophysicist with over 25 years experience in over 15 countries including the US, Egypt, Iran, Oman, China, Dubai, Australia and Trinidad and Tobago. Shaw started his career with Amoco and was instrumental in the discovery and development of numerous on and off shore fields. Mr. Shaw has demonstrated exceptional knowledge in the interpretation and mapping of prospects in offshore frontier areas.

CEO of Hyperdynamics, Ray Leonard said, "After reviewing the geology and geophysics of offshore Guinea, David and Ed agreed to join our team, another indication of the prospectivity. Working with and under the direction of Exploration VP James Spear they will be documenting the petroleum system and prospects in the area.

Rep. Jefferson Convicted On 11 of 16 Counts Of Bribery

At a trial where ERHC Energy was never mentioned, Rep. William Jefferson fought to put his many African relationships in a better light - and failed. A federal jury yesterday convicted the infamous Louisiana congressman on 11 of 16 counts of bribery after an investigation that began with the discover of $90,000 carefully wrapped amid household food items in a deep freeze at his home.

The cold cash eventually led investigators back along a money trail that originated in deals involving telecommunications contracts in Africa. Along the way, it looked at one time that Jefferson's pursuers would take down Abu Abubakar, the Vice President of Nigeria in the previous Obasanjo administration, but left a wide range of entities - although not all of them, as several turned state's witness - free and clear.

The outcome would seem to throw into doubt the investigation of ERHC Energy that began with a raid on the company's files in Houston two years ago that uncovered a William Hefferson file - probably a newspaper clipping - proceeded through a series of damning articles by Ken Silverstein on Harper's Online and a long hit piece in the New Yorker, and finally ended up going nowhere.

Meanwhile, ERHE, the company's stock, has jumped nearly 700% this year, from a low od $0.10 to $0.71 roday, with bright oprospects for the dollar mark and beyond by the end of this month as drilling finally begins on ERHC concessions in the Gulf of Guinea.

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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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Barry Holszweig, the owner of the first dedicated HHO facility in the world - a six-bay garage called YourWater2Gas at 18300 US Hwy. 19 at Bellaire Road in Clearwater, Fla., - explains how onboard hydrogen generators get additional power and fuel savings from the novel technology.  Much of the American HHO industry is represented several times a year at the Bradenton, Fla.-based HHO Games & Exposition.  The last HHO Games & Expo took place July 17-19, 2009, at the University of South Florida-St. Petersburg, and featured some of the latest developments in hydride storage of hydrogen, titanium kits that get extraordinary results, a prize-winning solar-powered HHO kit designed by teenagers, and sleek, highly polished HHO Kits from Hyrbridgen,.Also a Clearwater, Fla., company, their kits are now being tested on trucks and refrigerated trailers of Sysco, the giant food processing company that serves millions of American restaurants.  Early results after a month of testing show significant gains in mileage and reduced diesel fuel consumption. Learn more about the HHO Games at http://hhogames.com

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

BIG News: Sinopec Makes A Bid For Addax, ERHC Says

Without addressing the issue of its concessions under the joint venture with Addax, ERHC Energy released a statement this morning confirming that an agreement has been reached for the Swiss player to be acquired for $52.80 a share, a 47% premium over the June 9 share price, by Sinopec, the sixth-largest oil company in the world and the second-largest in China. The price is protected by a $300 million termination fee, Addax said.

ERHC Energy has a 22% interest in Block 2 of the Nigeria-Sao Tome & Principe Joint Development Zone (JDZ), where Sinopec is the operator, and a 19.5% interest in Block 4, where Addax is the operator. ERHC Energy helped arrange the relationship that now prevails, it said in the 9:38AM EDT press release, forwarded to us by Mark St. Amour.

The move by Sinopec brings into sharp focus the Chinese demand for oil and its perspicacity in seeking a deal at a time when oil prices and share price are depressed.

A Dow Jones/Wall Street Journal report on June 19 noted the probable acquisition and said the company will begin drilling Block
2 very early in July:

The TransOcean SEDCO-702 deepwater rig is due to arrive at Block 2 around July 1 and drilling will start immediately afterwards, said an official with the JDZ.

ERHE rose just $0.01 on today's news, to $0.66, still $0.03 below its recent high of $0.69 but far ahead of its January price of $0.11.

The company said with a muted sense of jubilation that the Blocks 2 and 4 drilling schedules set for the third quarter of this year could begin as early as July, although we doubt it. The company says the offer/buyout would have no impact on the schedule.

ERHC Energy Inc. Responds to Announcement of Planned Acquisition of Addax Petroleum by Sinopec Corp.

HOUSTON, June 24, 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 responded to the announcement of an agreement for Sinopec Corp. to acquire Addax Petroleum.

Sinopec and Addax are longtime technical partners of ERHC Energy. ERHC was instrumental in helping both companies establish a presence in the JDZ and has worked closely with them on issues related to oil and gas exploration. Sinopec is the operator of Joint Development Zone (JDZ) Block 2, in which ERHC has a 22 percent interest. Addax is the operator of JDZ Block 4, in which ERHC has a 19.5 percent interest.

“Today’s announcement is the start of an intensive process, which we expect will be beneficial for all parties involved,” said Peter Ntephe, chief operating officer with ERHC. “Most important for ERHC is that we have been assured that today’s announcement will have no impact on the commencement of exploratory drilling in JDZ Blocks 2 and 4.”

According to the operators, drilling in JDZ Blocks 2 and 4 is scheduled for the third quarter and could begin as early as July.

Here is the Addax press release:

Calgary, June 24, 2009 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX: AXC and LSE: AXC) announced today that it has entered into a definitive agreement (the "Support Agreement") with Sinopec International Petroleum Exploration and Production Corporation ("SIPC") pursuant to which SIPC has agreed, subject to the terms of the Support Agreement, to make an offer to acquire all of the outstanding common shares of Addax Petroleum by way of a negotiated take-over bid (the "Offer") for C$52.80 per common share in cash.

The Offer represents a 47% premium to the closing market price on the TSX of the Addax Petroleum common shares on June 5, 2009, the day prior to Addax Petroleum's public announcement that it was in preliminary discussions with parties regarding a potential transaction. SIPC is a wholly owned subsidiary of China Petrochemical Corporation ("Sinopec Group") and undertakes overseas investments and operations in the upstream oil and gas sector. Sinopec Group is China's largest producer and supplier of oil products and major petrochemical products.

The Support Agreement provides for, among other things, customary provisions relating to support of Addax Petroleum's board of directors, non-solicitation and right to match covenants in favour of SIPC and the payment to SIPC of a termination fee of C$300 million if the acquisition is not completed in certain specified circumstances.

The obligation of SIPC to take up and pay for Addax Petroleum common shares pursuant to the Offer is also subject to the receipt of certain approvals from the Government of The People's Republic of China. SIPC has agreed to pay a break-up fee of C$300 million in the event that all approvals required to be obtained by SIPC from the Government of The People's Republic of China have not been obtained by August 24, 2009 and Addax Petroleum elects to terminate the Support Agreement. The acquisition of the Addax Petroleum common shares is not conditional on financing.

In connection with the Offer, AOG Holdings BV, a wholly owned subsidiary of the Addax & Oryx Group Ltd, and Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum, have each entered into lock-up agreements with SIPC pursuant to which they have agreed to, among other things, tender their Addax Petroleum common shares to the Offer. Addax Petroleum's other senior officers and directors will also enter into lock-up agreements. The total lock-up agreements represent approximately 38% of outstanding Addax Petroleum common shares (calculated on a fully-diluted basis).

The Support Agreement also provides that if SIPC acquires not less than 66⅔% of the outstanding Addax Petroleum common shares under the Offer, SIPC will comply, or cause Addax Petroleum to comply, with the terms of the 3.75% convertible notes of Addax Petroleum due May 31, 2012.

Addax Petroleum's board of directors, after consulting with its financial and legal advisors, has unanimously determined that the Offer is fair to the holders of Addax Petroleum common shares and is in the best interests of Addax Petroleum and has recommended acceptance of the Offer by holders of Addax Petroleum common shares. RBC Capital Markets, the financial advisor to Addax Petroleum's board of directors, has provided an opinion that the consideration to be received by the holders of Addax Petroleum common shares under the Offer is fair, from a financial point of view, to such holders.

Commenting, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "We are pleased that Sinopec has recognised the highly attractive asset portfolio and exceptional team that we have assembled at Addax Petroleum. The efforts and accomplishments that Addax Petroleum has achieved thus far will be built on through increased investment in the business and acceleration of development and exploration plans. While Addax Petroleum will cease to be a publicly traded company, we look forward to continuing our business in the countries in which we operate for the benefit of all stakeholders."

Formal documentation relating to the take-over bid is expected to be mailed by SIPC in early July 2009. The Offer will be open for acceptance for a period of not less than 35 days and will be conditional upon, among other things, valid acceptance of the Offer by Addax Petroleum shareholders owning not less than 66 2/3% of the outstanding Addax Petroleum common shares (calculated on a fully-diluted basis).

In addition, the Offer will be subject to certain customary conditions, relevant regulatory approvals including the receipt of approval from the Government of The People's Republic of China and the absence of any material adverse change with respect to Addax Petroleum. SIPC may waive certain conditions of the Offer in certain circumstances. If the Offer is successful, SIPC has agreed to take steps available to it under relevant securities laws to acquire any remaining outstanding Addax Petroleum common shares.

RBC Capital Markets is acting as financial advisor and Fasken Martineau DuMoulin LLP is acting as legal counsel to Addax Petroleum and Osler, Hoskin & Harcourt LLP is acting as legal counsel to the Board of Directors of Addax Petroleum.

No Bid From CNOOC On Addax, But It's A Complex Game

Despite an enormous amount of published specualtion, Sinopec to date has made no offer for Addax, according to late reports Sunday night from Bloomberg News. That development will probably trigger a sell-off Monday morning, following a 10% share-price decline on Friday. The backtracking should not go very deep, hpowever, and we would tend to believe that with drilling just months away, it may not drop below $0.50 on this latest retrenchment.

Sinopec is obviously wary about all the unknowns involved in ther Addax deal, including the largest one of all - how much oil is in Blocks 2 and 4, the principal assets of Addax in the Gulf of Guinea Joint Development Zone. However, if CNOOC-Sinopec truly wants to be well-placed in the event the most prospective Blocks are sitting on an elephant-size field, it can't delay too long without riskling a re-entry by Chevron and ExxonMobil, both of who would be likely bidders at a lower share price.

Chevron, in what may be one of the best poker bluffs of all time, has indicated it will not be drilling any longer on Block 1 because what was first reported in the Wall Street Journal as a billion-dollar findwas not "commercially viable." But it may be that Chevron hoped to bring down the price for Blocks 2 and 4, having contemplated a check-and-raise strategy all along.

In that circumstance, the American oil giant would end up with all the big pieces - the whole pot really - and then resume its work on Block 1 as well. It's unclear whether the JDZ would go along with developments like those, though.

Frankly, we would also not put it past China to have already used some advance technology to do its own independent mapping of the JDZ via a submarine stealthily introduced into the Gulf. If Sinopec has decided the Blocks were oversold by Nigeria, they may want a bargain-basement price. Of course, Chevron might have asked the U.S. Navy for the same kind of clandestine help. It could have been the secret part of the U.S. Navy visit to the region more than a year ago, during Dick Cheney's secretive reign.

ERHE Soars to $0.695 As Addax Buyout Talk Links To ERHC Energy Holdings

ERHE.OB has soared to $0.695 at the beginning of what may be a world-record run for this plucky stock that's gone to Hell and back to hang on to its rights in the highly prospective Gulf of Guinea Blocks 2, 3 and 4 of the Nigeria-Sao Tome & Principe Joint Development Zone.

The ride from @0.11, where it was mired for months until January, now holds promise to finally reach the $1 mark that for so long has been its upper limit under even the best and most exciting of circumstances.

At the same time, there's roon for concern that drilling is again faced with uncertainty. A June 9 letter from EWRHC Energy CO Peter Ntephe crystallized the doubts when he announced that the drilling rig contracted for exploring the blocks has been summarily removed from the picture due to unspecified problems that had early kept ir in a Singapore dry dock long past its anticipated departure date.

We don't think the drillship issue is going to be much of a drag on share price, and indeed, Ntephe still maintains in his letter that drilling may come in Block 2 as soon as six weeks from now, and in Block 4 by the end of July. They plan to use the drillship Deepwater Pathfinder, Peter Ntephe said.

We're looking for another $0.30 over the next week if talks confirmed by Addax stay on track.

Ntephe also addresses what apparently were several disgruntled shareholders who feared we'd let our capital dwindle with new acquisitions or devalue our stock by paying for new projects with new issues. He promised to segregate those acquisition costs to insulate our capital status but didn't indicate where the new money would come from. With the real payday still years away and the Sao Tome-controlled EEZ still in our sights, I'm not sure it's a great idea.

Here's his letter:

June 9, 2009
Chief Operating Officer Updates ERHC Energy Shareholders
4:08 PM ET | Market Wire

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