ERHC 2010 AGM Management Presentation

2010 ERHC Management Presentation Annual Shareholder’s Meeting ERHC Energy Inc. April 27, 2010

Cautionary Statement
Statements during this meeting may concern ERHC Energy Inc.’s future operating milestones, future drilling operations, the planned exploration and appraisal program, future prospects, future investment opportunities and financing plans, future shareholders’ meetings and related proceedings, as well as other matters that are not historical facts or information. Such statements are inherently subject to a variety of risks, assumptions and uncertainties that could cause actual results to differ materially from those anticipated, projected, expressed or implied. A discussion of the risk factors that could impact these areas and the Company’s overall business and financial performance can be found in the Company’s reports and other filings with the Securities and Exchange Commission. These factors include, among others, those relating to the Company’s ability to exploit its commercial interests in the JDZ and the exclusive territorial waters of São Tomé and Príncipe, general economic and business conditions, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations and various other matters, many of which are beyond the Company’s control. Given these concerns, investors and analysts should not place undue reliance on these statements. Each of the above statements speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any of the above statements is based.

What We Will Cover
Financial highlights
Update on Joint Development Zone
Update on Sao Tome & Principe Exclusive Economic Zone
Update on acquisition/growth strategy
Update on AIM listing
Questions

2009 Financial Highlights

G&A Expenses Down (in thousands)
General and administrative expenses for the FY 2009 were $4.2 million ( Q1 2010 totaled $809,533 )

Cash and Cash Equivalents (in thousands)
Cash and cash equivalents at the end of FY 2009 totaled $22.4 million ($21.5 million at end of Q1 2010 )

Nigeria-Sao Tome & Principe JDZ Update

JDZ Exploration and Analysis JDZ
Five-well drilling campaign completed
Interesting drilling results with hydrocarbons encountered
Analysis of information gathered continuing

Phase I Extension
To do list:
Further probe into controlling elements in the hydrocarbon accumulation based on seismic data and drilled well data
Re-evaluate geologic conditions for petroleum accumulation in JDZ Block 2
Estimate resources of undrilled traps and evaluate drillable trap(s)
Analyze economic feasibility of developing the oil/gas reservoir
Propose the way forward

An Aggressive Campaign

JDZ Block 2

Block 2 – Bomu
The well was drilled on time and budget (+<5%)
Pre-drill 13 individual sands were identified
Well was drilled to a total depth of 3,580 meters
Post-drill 8 were found to contain gas
At the present time there is not enough hydrocarbon resource for a stand-alone development

JDZ Block 3

Block 3 – Lemba
The well was drilled on time and below budget
Well was drilled to a total depth of 3,758 meters
Pre-drill 8 individual sands were identified as prospective
2 were found to contain biogenic methane gas
An additional prospect is currently being evaluated

JDZ Block 4

Block 4 Kina Oki East Malanza
All wells drilled on time, budget and to planned depths
Kina – gas discovered in multiple sands
Oki East – gas discovered in multiple sands
Interpretation and integration of geological and drilling data from the wells is ongoing

Sao Tome & Principe EEZ Update

DRSTP EEZ Status
ERHC exercised its preferential rights
Awarded EEZ Blocks 4 and 11
Signature bonus free
Expect to enter into negotiations on Production Sharing Contracts
Will consider bidding for two further 15% interests
EEZ

Sao Tome & Principe EEZ

DRSTP EEZ Block 4

DRSTP EEZ Block 11

Acquisition/Growth Strategy Update

ERHC Growth Strategy
Strategy is to assemble a diversified portfolio of West African O&G assets
Currently pursuing a number of West African O&G investments opportunities
AIM listing will enhance ERHC’s ability to secure acquisition funding
Principal assets remain the JDZ and the EEZ interests

AIM Listing Update

Background
ERHC commenced the process of seeking a listing on the AIM in January 2010
Strategy agreed with Strand Hanson
Important steps necessary before ERHC’s planned AIM admission

AIM Overview
A respected and well regulated market
Among world’s leading markets for growing companies
More than 3,000 companies have collectively raised +$90 billion
A reputation for fostering O&G companies ±100 listed
Good analyst coverage of the O&G sector and a deep understanding of the “African” opportunity and risks

Familiar with African O&G Industry
ERHC is among a couple OTC-listed companies focused on Africa’s O&G industry
AIM has nearly a dozen companies focused on Africa…
BOWLEVEN
CHARIOT OIL & GAS LTD
COVE ENERGY PLC
DOMINION PETROLEUM LTD
GASOL
GLOBAL PETROLEUM
PROVIDENCE RESOURCES
RANGE RESOURCES
SIRIUS PETROLEUM
TOWER RESOURCES
VICTORIA OIL & GAS

Recent O&G AIM Fund Raisings
Recent AIM fund raisings by African focused O&G companies:
Afren  $175m in November 2009
Bowleven  $113m in June 2009
Cove Energy  $68m in September 2009 & $38m in March 2010
Dominion Petroleum  $50m in March 2010

Rationale
Enhance shareholder value by:
Attracting institutional investors
Reaping the benefits of being quoted and traded at the heart of the international finance community
Many reputable brokers do not trust OTCBB companies
ERHC lacks attributes to attract AMEX, NASDAQ interest

AIM Listing Process
Appoint sponsor and other advisors
Complete strategy and plan of action
Prepare admission documentation
Undertake due diligence
Complete Exchange Offering
Admission

AIM Listing Advisors
Strand Hanson – NOMAD and Sponsor - www.strandhanson.co.uk
Grant Thornton – Reporting Accountant - www.grant-thornton.co.uk
Duane Morris – Company Legal Advisor - www.duanemorris.com
Hunton & Williams – NOMAD Legal Advisor - www.hunton.com
CPR to be prepared by Netherland Sewell – www.netherlandsewell.com

Recommendations
Establish a new subsidiary for AIM (ERHC Energy plc)
Seek shareholder approval of exchange of existing stock for AIM shares
List ERHC Energy plc on AIM

Initial Structure 97.5% 2.5% 2.5% 2.5% ERHC Energy Nigeria JDZ Block 2 Ltd. ERHC Energy JDZ Block 4 Ltd. ERHC Energy Nigeria JDZ Block 3 Ltd. ERHC Energy (Cayman) Ltd. ERHC Energy, Inc . 100% 97.5% 97.5%

Pre AIM Corporate Structure ERHC Energy (BVI) Ltd. ERHC Energy (Cayman) Ltd. ERHC Energy, Inc. 100% ERHC Energy plc 100% To be listed on AIM Newly established intermediate holding company registered in Jersey, GB
Owns 100% of
ERHC Energy Nigeria
JDZ Block 2 Ltd
JDZ Block 3 Ltd
JDZ Block 4 Ltd
Will own ERHC’s EEZ assets 723,030,444 issued shares 723,030,444 issued shares

Exchange Offer
If Exchange Offer is approved by a vote of shareholders at an Extraordinary General Meeting (EGM) then:
Shareholders of record would have the opportunity to exchange all or a portion of their current shares for shares in ERHC Energy plc
Exchange would be on a one-for-one basis
Exchanged ERHC.OB shares will be held in “treasury” prior to being cancelled

Participation Voluntary
Participation in the Exchange Offer is voluntary
According to Company’s advisors, an exchange of shares would result in no unfavorable tax consequences to those participating (check with your tax advisor)

No Change in Total Share Count
The total number of shares before and after the Exchange will be the same, for example:
Today: there are 723,030,444 issued ERHE.OB shares
If 600 million shares are exchanged, there would be 123,030,444 issued shares of ERHE.OB outstanding after the Exchange
ERHC.OB will own 123,030,444 shares of ERHC Energy plc
The total number of ERHC Energy plc shares will be 723,030,444
The Exchange Offer does not result in any shareholder value dilution

Special Shareholder’s Meeting
Exchange Offer is contingent on admission of ERHC Energy plc to AIM
Current shareholders will be invited to approve the exchange offer at EGM
Progression of events:
Post proxy to shareholders
Hold EGM
If Exchange Offer is approved, offer period commences
Immediately following Exchange Offer period, admission to AIM

Post-AIM Corporate Structure ERHC Energy (BVI) Ltd. ERHC Energy (Cayman) Ltd. ERHC Energy, Inc. 100% ERHC Energy plc TBD% TBD% Direct Shareholders 100% Shareholders who choose not to participate in the “ exchange offer”

Summary
ERHC’s AIM listing process is underway
An AIM listing will enhance shareholder value:
Help to better reflect true value
Assist and enable the new acquisitions process
Give ERHC the opportunity to improve its investment profile

Recap
Strong financial base
JDZ results not ready yet
PSC negotiations next for the DRSTP EEZ
Negotiations continue for potential acquisitions
AIM listing and exchange offer to require shareholder approval

Question and Answer Session Please: One question and one follow-up per person; keep statements to less than two minutes

An Aggressive Campaign

Area Overview

JDZ Block 3 Second Term TECOM - JDZ Location and Niger Delta Structural Provinces FROM MABON LIMITED WEBSITE

JDZ Block 3 Second Term TECOM - JDZ Play Type classification

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ERHC 2010 AGM Management Presentation

by Dan Keeney on Apr 27, 2010

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ERHC 2010 AGM Management Presentation — Presentation Transcript