1. Exploration:
Prospects and Challenges
for a Small Independent
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2. 2
Peter Ntephe, PhD
• President and CEO of ERHC Energy Inc.
• Career spanning 25 years, in the public and private
sectors.
• Involved in ERHC’s executive management since 2001.
• Key roles in the negotiation, securing and maintenance
of ERHC’s oil and gas interests in sub-Saharan Africa
• Member of the Association of International Petroleum
Negotiators (AIPN) and the Committee on Oil and Gas
Law of the International Bar Association.

3. 3
Cautionary Statement
This presentation contains statements concerning 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 stockholders’ meetings 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 Kenya, Chad, the JDZ and the
Exclusive Economic Zone 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
presentation. 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.

4. Part 1.
The Exploration
Model
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5. Exploration Company
Business Model
• Step 1: Acquire
– Acquire early stage exploration assets – low entry costs
• Step 2a: Build
– Develop prospectivity of assets – G&G work, reserve
estimate, drilling
• Step 2b: Build
– Gain increased valuation of assets and company with
Step 2a
• Step 3: Sell
– Sell assets or sell company at tremendous profit (just
before drilling or on discovery)
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6. Exploration Value Proposition
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4 to 10 years 5 to 12 years 5 to 20+ years
MarketCapAssetValue
Exploration Development Production
Usual Point of Sale

7. Salient Points on Model
• No cash flow
• Until discovery of oil and/or sale of asset or company
(“Payout”)
• Equity is sole source of capital
• Working capital before Payout is from sale of equity in
(a) asset and/or (b) company
• Process-driven value
• Value accretions of asset and company predictable
through asset prospectivity development
• High risk
• But high reward when successfully executed
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8. Part 2.
Case Study:
ERHC Energy
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9. Introducing ERHC
• U.S. Public Company
– Regulated by U.S. SEC; based in Houston
– Shares trade on the OTCQB marketplace
(OTCQB:ERHE)
– Market Capitalization: $53.5m (August 16, 2013)
– Issued Shares: 738m
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10. ERHC Exploration Assets
• Kenya
• Block 11A
• Chad
• Blocks BDS 2008, Chari Ouest 3 and Manga
• Nigeria-Sao Tome & Principe JDZ
• Blocks 2, 3, 4, 5, 6 and 9 (working interests)
• Sao Tome & Principe EEZ
• Blocks 4 and 11
• Small Equity Stake
• In Toronto-listed Oando Energy Resources (TSX: OER)
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11. The Original ERHC Plan
Remember the Exploration Business Model and E&P
Value Proposition in Part 1:
• Step 1. Acquire frontier E&P rights for low entry
costs
• Step 2a. Build asset value through greenfield G&G
work, attract partners and drill wells
• Step 2b. Build company value by doing 2a, driving
ERHC rapidly up the value curve
• Step 3. Sell ERHC or E&P rights for tremendous
profit prior to drilling or upon discovery (within 5
years)
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Oil Frontier: Sao Tome &
Principe

13. Original Plan Execution:
Step 1. Acquire
• 1997: Exclusive Agreement with STP
– 25 year term
– Over 50% of net revenues from all STP oil production in return for
• Mapping STP maritime boundaries and delineating Exclusive Economic Zone
• Developing STP oil industry, including establishing national oil company and licensing oil rights
• One-time payment of $5million
• 1997-1999: ERHC does the following:
– Pays $5 million
– Maps maritime boundaries and delineates EEZ
– Establishes national oil company (JV with government)
– Contracts for seismic acquisition
• 1999-2003: ERHC and STP renegotiate Agreement until:
– ERHC gives up all previous rights and entitlements in return for preferential minority rights in
• 6 offshore blocks in the Nigeria-STP Joint Development Zone (JDZ)
• 4 offshore blocks in the STP EEZ
• 2004: ERHC exercises preferential minority rights in the JDZ
• 2005-2006: ERHC teams up with International Operators to acquire additional rights (by
competitive bidding) in JDZ Blocks 2, 3 and 4
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14. Original Plan Execution:
Step 2a. Build
• 2006 -2009: Pre-drilling Activities
– Geological and Geophysical Work
– Preparation for drilling and contracting of drillship
and rig
• 2009-2010: Drilling
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Well Block Total Depth
Kina-1 JDZ Block 4 3,750m
Bomu-1 JDZ Block 2 3,580m
Lemba–1 JDZ Block 3 3,758m
Malanza-1 JDZ Block 4 4,196m
Oki East-1 JDZ Block 4 3,873m

15. Original Plan Execution:
Step 2b. Build (Value)
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09
$/Share
15
February 2009
Sinopec-ERHC
announce
plans to drill
exploration
well
June 2009
Addax-ERHC announce
4 exploration well
program
~$80 MM
~$160 MM
August 2009
Drilling begins on
Lemba – 1
in Block 3 of JDZ
March 2009
Sinopec-ERHC prepare
for Bomu– 1 well
on Block 2 of JDZ
~$310 MM
~$535 MM
~$340 MM
~$672 MM
~$540 MM
11x price increase over 8 month period Jan – Sept 2009
Month 1 Month 8
Milestones
Market Cap

16. Original Plan Execution:
Step 3. Sell?
• 2010: Results of drilling
– No commercial discoveries announced
– >$400 million exploration costs written off
– Value curve inverts
• What to do?
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Sell at
diminished
value?
Renew plan
and start
again?

17. Renewing the Plan
• 2010-2011
– Acquire
• Sao Tome & Principe EEZ – Blocks 4 and 11
• Chad – BDS 2008, Chari Ouest III and Manga Blocks (onshore)
• Kenya – Block 11A (onshore)
• 2011-2013
– Build (Exploration)
• G&G work (ongoing)
• Formation of partnerships (ongoing)
– Build (Value)
• At inception of value curve again
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Republic of Kenya
• ERHC’s Block 11A is at the intersection of
two major rift systems
• The African rift play is one of the hottest
trends in global oil exploration
• Recent African rift discoveries include:
– Ngamia (Kenya) 200-250 million barrels of oil
– Twiga (Kenya) flowed at a cumulative rate of
5,200 barrels/day
– Lake Albert (Uganda) 1.3 billion barrels of oil

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Republic of Chad
• The Republic of Chad has proven oil reserves of 1.5
billion barrels
• Undeveloped discoveries estimated at 2.6 billion
barrels
• ERHC’s assets in Southern Chad are adjacent to the
Doba Basin and the Doseo Basin
• The area produces more than 120,000 barrels per
day
• Served by the 660 mile Chad/Cameroon Pipeline
and the N’Djemena Refinery opened in 2012

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São Tomé and Príncipe
Exclusive Economic Zone
• Virtually surrounded by proven hydrocarbon
systems
• ERHC has a 100 percent working interest in Blocks 4
and 11
• Free of signature bonuses
• Additional rights to acquire up to a 15 percent paid
working interest in two additional blocks
• Cretaceous Turbidite fan deposits from offshore
Gabon may have formed traps in Blocks 4 and 11
• Similar fan plays led to the Jubilee Field discovery

21. Part 3. The
Continuing
Investment
Rationale
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22. Example of Successful
Exploration Business Model
• Pre-drilling of
Rovuma Field,
Mozambique: $18m
valuation
• 12 months later, after
drilling and huge discovery
in Rovuma: $2bn valuation
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ERHC Investment
Opportunities
• ERHC is open to discuss
– Farm-in and other partnerships on ERHC’s oil
and gas assets
– Equity participation in asset-holding
subsidiaries
– Other routes to participation in ERHC’s diverse
asset portfolio

24. Summary
• Early Stage Exploration
– High risk
– Possibility (but no guarantee) of high reward
• Small Independent
– Focus on early mover opportunity and low-entry cost
– Revenues during execution limited to sale of:
• Company equity
• Equity in asset
• Proven but Recondite Business Model
– Precedents of successful execution and massive profits
– Perseverance is key
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