ERHC Energy Inc. Presentation to the Rodman & Renshaw Annual Global Investment Conference


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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, presented at the Rodman & Renshaw Annual Global Investment Conference on Wednesday, September 15, 2010. The conference, which had a track dedicated to energy, took place at the New York Palace Hotel, 455 Madison Avenue in New York.

ERHC Energy's principal presenter was David Bovell, Vice President Corporate Development.

Please note: Slide 4 of the presentation states "Insiders own 51.7% of outstanding shares." The correct figure is 42.6%.

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ERHC Energy Inc. Presentation to the Rodman & Renshaw Annual Global Investment Conference

  1. 1. Conference Presentation 15 th September 2010
  2. 2. Cautionary Statement <ul><li>Statements during this presentation 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, response to U.S. governmental authority 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 hereof. 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. </li></ul>
  3. 3. Company Snapshot <ul><li>Bulletin Board (OTCBB) – ERHE.OB </li></ul><ul><li>Founded in 1986 </li></ul><ul><li>Market cap: $225 million at 8/31/2010 </li></ul><ul><li>Own Valuable E&P assets in the Gulf of Guinea </li></ul><ul><li>Incorporated in Colorado and based in Houston, TX </li></ul>
  4. 4. Corporate Profile <ul><li>Corporate Summary: </li></ul><ul><li>ERHC Energy Inc. is a U.S. based energy investment company focused on West Africa </li></ul><ul><li>Engages in the exploration and exploitation of oil and gas reserves in the Gulf of Guinea offshore of West Africa </li></ul><ul><li>Insiders own 51.7% of outstanding shares </li></ul><ul><li>ERHC has no outstanding debt </li></ul>Enterprise Value: 8/31/2010 Share Price $0.32 Diluted Shares Outstanding (mm) 723.05 Market Capitalization $225 Net Total Debt - Cash $20 52-Week High ($/share) $0.90 52-Week Low ($/share) $0.20
  5. 5. Strong Management <ul><li>Peter Ntephe, Chief Executive Officer </li></ul><ul><li>22 years of experience in corporate law and governance. Oversees the general administration and governance of ERHC and its subsidiaries, ensuring the group meets its strategic objectives. </li></ul><ul><li>David Bovell, Vice President - Corporate Development </li></ul><ul><li>Expertise in corporate finance. He oversees strategies for corporate growth, including identification of appropriate opportunities for corporate mergers and acquisitions. </li></ul><ul><li>Dan Gralla, Vice President - Technical </li></ul><ul><li>More than 25 years in exploration and production projects around the world. Manages relation-ships with consortium partners and regulatory agencies, and helps to expand its asset base. </li></ul><ul><li>Sylvan Odobulu, Controller </li></ul><ul><li>Principal accounting officer, responsible for overseeing ERHC's day to day operations, preparing financial statements and managing the activities of the company's staff and service providers. </li></ul>
  6. 6. Management Team <ul><li>Peter C. Ntephe </li></ul><ul><li>Chief Executive Officer </li></ul>David Bovell Vice President Corporate Development Daniel Gralla Vice President Technical    Sylvan Odobulu Controller
  7. 7. Experienced Board <ul><li>Ambassador (rtd) Howard Jeter </li></ul><ul><ul><li>Was U.S. Ambassador to Nigeria and the Republic of Botswana and also served as Deputy Assistant Secretary of State for African Affairs, Director of West African Affairs, and Special Presidential Envoy to Liberia. </li></ul></ul><ul><li>Dr. Andrew Uzoigwe </li></ul><ul><ul><li>A Stanford-trained Engineer, retired from the Nigerian National Petroleum Corporation (NNPC) after holding top positions including Group Executive Director (Exploration and Production). </li></ul></ul><ul><li>Les Blair </li></ul><ul><ul><li>Has over 35 years experience in Exploration and Production in Africa and Asia. He left Addax in 2010 after 12 years of service in which he was instrumental to expanding Addax’s E&P portfolio in Nigeria and Central Asia. </li></ul></ul><ul><li>Friday Oviawe </li></ul><ul><ul><li>A Certified Public Accountant and Chartered Banker, has extensive financial and accounting experience in Nigeria and the United States. </li></ul></ul><ul><li>Peter Ntephe </li></ul><ul><ul><li>Has thorough knowledge of ERHC’s business and oversees the executive management of the Group. He is ERHC’s longest serving officer, having initially joined as Group Corporate Secretary in 2001. </li></ul></ul>
  8. 8. Board Members <ul><li>Ambassador (rtd) </li></ul><ul><li>Howard Jeter </li></ul>Leslie Blair Andrew C. Uzoigwe Friday Oviawe, CPA Peter Ntephe, CEO
  9. 9. ERHC in the Gulf of Guinea <ul><li>Rights in six of the nine blocks of the Joint Development Zone </li></ul><ul><li>100% of two blocks and other rights in the Sao Tome & Principe Exclusive Economic Zone </li></ul><ul><li>Exploring other opportunities in the Gulf of Guinea </li></ul>
  10. 10. The JDZ and DRSTP EEZ <ul><li>Joint Development Zone </li></ul><ul><ul><li>34,548 sq km area </li></ul></ul><ul><ul><li>Approximately 200 km off the coastline of Nigeria and São Tomé & Principe </li></ul></ul><ul><li>Exclusive Economic Zone </li></ul><ul><ul><li>Approximately 160,000 square km area </li></ul></ul>EEZ JDZ
  11. 11. Nearby Discoveries <ul><li>Significant Discoveries near ERHC: </li></ul><ul><ul><li>Bonga: 700 million barrels </li></ul></ul><ul><ul><li>Ikija-1: 500 million barrels </li></ul></ul><ul><ul><li>Agbami: 1 billion barrels </li></ul></ul><ul><ul><li>Nnwa-2: Gas discovery </li></ul></ul><ul><ul><li>Akpo-1: 500 million barrels </li></ul></ul><ul><ul><li>Ukot: Oil discovery </li></ul></ul>Bonga Agbami Ikija-1 Akpo-1 Ukot Nnwa-2
  12. 12. The Joint Development Zone ERHC Prospective Resources
  13. 13. JDZ Interests In total, ERHC has approximately 12% of the exploration and production rights awarded in the JDZ by the Joint Development Authority. JDZ Block Current ERHC Interest Block 2 22% Block 3 10% Block 4 19.5% Block 5 15% Block 6 15% Block 9 20%
  14. 14. JDZ Exploration Progress JDZ <ul><li>Initial Five-well drilling campaign completed in January 2010 </li></ul><ul><li>Over $300m expended </li></ul><ul><li>Biogenic methane gas discovered across all three ERHC Blocks </li></ul><ul><li>100% of ERHC’s upfront costs for exploration and production are carried by our technical partners via a full carry relationship </li></ul>
  15. 15. Strong Technical Partners <ul><li>Sinopec (NYSE: SNP) </li></ul><ul><ul><li>Operates an integrated oil and gas and chemical company in the People’s Republic of China and Hong Kong. </li></ul></ul><ul><li>Addax Petroleum* </li></ul><ul><ul><li>One of the largest and most successful oil producers in West Africa, plus significant production in the Middle East. </li></ul></ul><ul><ul><li>* NB. August 2009: Completion of takeover of Addax by Sinopec. </li></ul></ul>
  16. 16. ERHC Prospective Resources *Pre-drill estimated resources JDZ Block 3 (10% WI) NSAI Best Risked Estimate: 8,751 MBBL 10,543 MMCF JDZ Block 4 (19.5% WI) NSAI Best Risked Estimate: 88,437 MBBL 86,282 MMCF JDZ Block 1 ERHC does not have interest JDZ Block 2 (22% WI) NSAI Best Risked Estimate: 38,334 MBBL 47,908 MMCF
  17. 17. Drilling commenced in September 2009 <ul><li>Exploration Phase 1 recently completed </li></ul><ul><li>Operators currently negotiating Exploration Phase 2 content with JDA </li></ul>
  18. 18. Sao Tome & Principe Exclusive Economic Zone
  19. 19. STP EEZ Status <ul><li>ERHC exercised its preferential rights in 2010 </li></ul><ul><li>Based on analysis of prospectivity, selected EEZ Blocks 4 and 11 prior to start of licensing round </li></ul><ul><li>Signature bonus free </li></ul>EEZ
  20. 20. Sao Tome & Principe EEZ <ul><li>Expect to enter into negotiations on Production Sharing Contracts before year end </li></ul><ul><li>Will consider bidding for two further 15% interests </li></ul>
  21. 21. STP EEZ Bathymetry <ul><li>Water depth ranging from 90m around islands to >3500m </li></ul><ul><li>Shallowest regions to the east </li></ul><ul><li>STP EEZ region exhibits an anomalously thick sedimentary section for oceanic region </li></ul>
  22. 22. Listing on AIM Market of the London Stock Exchange
  23. 23. AIM Listing Basics <ul><li>A respected and well regulated market </li></ul><ul><ul><li>Among world’s leading markets for growing companies </li></ul></ul><ul><ul><li>More than 3,000 companies have collectively raised +$90 billion </li></ul></ul><ul><li>A reputation for fostering O&G companies ±100 listed </li></ul><ul><li>Good analyst coverage of the O&G sector and a deep understanding of the “African” opportunity and risks </li></ul>
  24. 24. Benefits of AIM Listing <ul><li>Potential involvement of institutional investors </li></ul><ul><li>Market’s familiarity with oil and gas companies focused on Africa </li></ul><ul><li>Enables the Company to access a new pool of capital to fund potential acquisitions </li></ul>
  25. 25. AIM Listing Advisors <ul><li>Strand Hanson – NOMAD and Sponsor – </li></ul><ul><li>Grant Thornton – Reporting Accountant – </li></ul><ul><li> </li></ul><ul><li>Akin Gump – Company Legal Advisor – </li></ul><ul><li>Hunton & Williams – NOMAD Legal Advisor – </li></ul><ul><li>CPR to be prepared by Netherland Sewell – </li></ul>
  26. 26. Growth Strategy & Diversification <ul><li>Management intends to diversify ERHC's portfolio both: </li></ul><ul><li>- Geographically, but focused on West Africa; </li></ul><ul><li>- Life cycle, acquiring assets in production or close to production </li></ul><ul><li>Acquisitions will reduce risk and give the Company bookable proven reserves so bringing ERHC closer to revenue generation </li></ul>
  27. 27. Summary
  28. 28. ERHC: Next Steps <ul><li>In the process of listing on the AIM market on the London Stock Exchange </li></ul><ul><li>Continue ‘Carry’ arrangements with technical partners in JDZ Blocks 2, 3 and 4 </li></ul><ul><li>Announcement of the commencement of JDZ Exploration Phase 2 is expected imminently </li></ul><ul><li>Seek potential farm-in partners for EEZ Blocks </li></ul>
  29. 29. ERHC: Investment Highlights <ul><li>Uniqueness of ERHC </li></ul><ul><ul><li>Home field advantage – significant investment by African business interests </li></ul></ul><ul><ul><li>Structure and governance recognized by international capital </li></ul></ul><ul><li>Assets </li></ul><ul><ul><li>Valuable E&P assets in the Gulf of Guinea </li></ul></ul><ul><ul><li>JDZ and STP EEZ Blocks have significant reserve potential for future growth </li></ul></ul><ul><li>Management </li></ul><ul><ul><li>Experienced management team </li></ul></ul><ul><ul><li>A track record of success in emerging markets </li></ul></ul>
  30. 30. <ul><li> </li></ul>