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ERHC Energy (OTCBB: ERHE) announced its year-end results for fiscal 2011, which ended September 30, 2011. At year-end 2011, ERHC had cash, cash equivalents, and treasury bills totaling approximately $12,144,597, and virtually no debt. During the 2011 fiscal year, ERHC’s general and administrative expenses totaled $4,414,630, which represented a 14% decrease compared to fiscal 2010.

OAG360 Comments:

Fiscal 2011 was an expansion year for ERHC Energy. The company made the move onshore to The Republic of Chad, nearly doubling its corporate acreage position in Sub-Saharan Africa, and has been actively pursuing partners on its São Tomé and Príncipe Exclusive Economic Zone (EEZ) projects. Prior to this expansion, ERHC only held interests in two offshore West Africa projects, the EEZ, and the São Tomé and Príncipe Joint Development Zone (JDZ).

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In 2011, ERHC expanded its operational focus and made its way into onshore Sub-Saharan Africa – primarily through its entrance into exploration acreage in The Republic of Chad. ERHC continues to have high expectations for eventual commercial discoveries in the JDZ; however, the company felt the need to expand its near-term operational objectives in other areas and diversify its exploration portfolio. During 2012, ERHC will concentrate primarily on its onshore acreage in Chad through field evaluation and data assessments. ERHC has been working to attract technically and financially capable partners to farm into its blocks in both the EEZ and Chad.

Offshore Exploration Update

ERHC is actively negotiating with the Government of São Tomé and Príncipe on PSCs for Blocks 4 and 11 within that nation’s Exclusive Economic Zone (EEZ).

Within ERHC’s Joint Development Zone (JDZ) Blocks 2, 3 and 4, the company and its interest partners must decide on the next steps by March 2012. Recent data show the relationship between fault characteristics and hydrocarbon accumulation in the JDZ as well as hydrocarbon accumulation modeling and optimization of favorable exploration targets. TOTAL (NYSE: TOT) intends to spend approximately $200 million in Block 1, adjacent to ERHC’s JDZ Block 2, on an aggressive drilling program. ERHC does not hold any rights to Block 1, but the geographic location is worth noting in regards to ERHC’s future development program in the JDZ.

 


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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.