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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