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Current ERHE Stock Info

ERHC Energy Inc. (ticker: ERHE) is a publicly traded American company with oil and gas assets in Sub-Saharan Africa. Over the last two years, ERHC has acquired exploration blocks in Chad and Kenya to complement its existing offshore blocks in the Joint Development Zone offshore São Tome and Principé.

On November 22, 2013, Tullow Oil (ticker: TLW) announced the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has revealed an estimated 100 meters (328 feet) of net oil pay. The discovery is the fifth consecutive success by operators in the region. The nearby Ekales-1 well was reported to have a net pay zone of 60 to 100 meters (170 to 328 feet) by Africa Oil (ticker: AOI) as announced on September 26, 2013. The Twiga South 1 flowed at a cumulative rate of 5.2 MBOEPD and the Ngamia 1 is believed to hold between 200 MMBO to 250 MMBO.

af-map-ERHCERHC Energy holds the 11-A block (100% WI), located to the northwest of recent discoveries. The block was acquired in a production sharing contract with the Kenyan government on July 9, 2012, and has not been drilled. Kenya’s Ministry of Energy began leasing out blocks in 2012 and sold 46 in all, including assets to Apache Corp. (ticker: APA), Anadarko (ticker: APC), CAMAC Energy (ticker: CAK) and StatOil (ticker: STO). On November 26, 2013, the company said initial results from an airborne Full Sensor Gravity Gradiometry (FTG) survey indicates hydrocarbon presence from the Lotikipi Basin appears to be greater than previously indicated. The survey, which began on November 18, 2013, will be completed near year-end 2013 and will cover up to 15,500 line kilometers.

kenya-blocks_v6The company announced a farm-out agreement on November 13, 2013, in which it will hand over operatorship and a portion of its interests. Due to Kenya’s regulations, all additional information is confidential until its government approves the agreement. ERHC said the partner is “technically and financially capable” of exploiting the play.

Bell Geospace is conducting the FTG study and has worked with companies like Anadarko (ticker: APC), BP (ticker: BP), Chevron (ticker: CVX), Conoco-Philips (ticker: COP), Devon (ticker: DVN), Noble Energy (ticker: NBL) and Shell (ticker: RDS-B).

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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.