ERHC Energy (OTCBB: ERHE) Presented October 27, 2008 By David Bovell Vice President Corporate Development
Cautionary Statement <ul><li>Statements during this presentation may concern ERHC Energy Inc.’s future operating milestone...
Introducing ERHC <ul><li>Based in Houston, Texas USA </li></ul><ul><li>Publicly traded on NASDAQ’s Over the Counter Bullet...
What Makes Us Different <ul><li>Sound strategy and record of accomplishment </li></ul><ul><li>Strong financial position </...
Business Strategy <ul><li>We have created significant opportunities in the Gulf of Guinea and, through strategic alliances...
Strong Cash Position <ul><li>ERHC is well placed to prosper during the credit crunch </li></ul><ul><li>Latest quarterly fi...
<ul><li>“… Those in a weaker position are having to sell assets or find partners for their most promising projects to get ...
Established Yet Emerging <ul><li>Began trading on OTC in 2001 </li></ul><ul><li>Market cap: $213 million  </li></ul><ul><l...
Strong Management <ul><li>Peter Ntephe, Chief Operating Officer   </li></ul><ul><li>20 years of experience in corporate la...
Strong Board <ul><li>Ambassador (rtd.) Howard Jeter   </li></ul><ul><li>Ambassador Jeter was U.S. Ambassador to Nigeria an...
World Class Assets <ul><li>ERHC has oil & gas exploration rights in a region of the world that experts believe can produce...
Where Do We Believe the Oil Is?
Assets in the Gulf of Guinea <ul><li>Rights in six of the nine blocks of the Joint Development Zone </li></ul><ul><li>Addi...
Highly Prospective Region <ul><li>“ The Gulf of Guinea…is one of the most prolific hydrocarbon provinces in the world, wit...
Nearby Discoveries <ul><li>Significant Discoveries: </li></ul><ul><ul><li>Bonga: 700 million barrels </li></ul></ul><ul><u...
The JDZ and EEZ <ul><li>JDZ </li></ul><ul><ul><li>34,548 sq km area </li></ul></ul><ul><ul><li>Approximately 200 km off th...
ERHC’s JDZ Interests “ “ No Contracts 35% 5% 35% ERHC Joint Bid Participating Interest 20% 15% 15% 25% 20% 30% ERHC Origin...
Recoverable Reserves Potential <ul><li>The combined recoverable reserves potential in the nine JDZ Blocks is estimated at ...
Significant Foothold <ul><li>In total, ERHC has 12% of the exploration and production rights awarded in the JDZ by the Joi...
JDZ Deepwater Blocks JDZ Block 3  (10% WI) Lemba Prospect Addax Estimate: 270 MMbbl for Block JDZ Block 4  (19.5% WI) Kina...
Kina Prospect in JDZ Block 4
Exploration Imminent <ul><li>Operators in three JDZ Blocks in which ERHC has interests have indicated exploratory drilling...
Full Carry Relationships <ul><li>ERHC has a full carry in JDZ Blocks 2, 3 and 4 </li></ul><ul><li>100% of ERHC’s upfront c...
ERHC’s EEZ Interests <ul><li>100% interest in up to two blocks of ERHC’s choice </li></ul><ul><li>Option for up to 15% pai...
Strong Technical Partners <ul><li>Addax Petroleum  (TSX: AXC and LSE: AXC) </li></ul><ul><ul><li>One of the largest oil pr...
Strong Technical Partners <ul><li>Sinopec  (NYSE: SNP) </li></ul><ul><ul><li>Operates an integrated oil and gas and chemic...
’ 06 Cash Infusion Provides Stability, Opportunity   $18.0 $7.5 $20.4 Proceeds of sales (millions)  Addax Block 4:  Adda...
Exploration is Imminent <ul><li>JDZ Block 2 </li></ul><ul><li>Sinopec has secured Joint Development Authority (JDA) approv...
Near-Term Exploration Efforts <ul><li>First Half of 2009 </li></ul><ul><ul><li>ERHC’s technical partners are engaged in a ...
2009 Exploration Plans  <ul><li>Second Half of 2009 </li></ul><ul><ul><li>Addax and Sinopec have contracted to take posses...
Corporate Growth Initiative <ul><li>Our growth strategy is to build on our success through additional discoveries of under...
Risk Diversification <ul><li>We will diversify risk by pursuing other growth opportunities by: </li></ul><ul><ul><li>Acqui...
Corporate Growth Action Items <ul><li>Leverage technical and geographic expertise </li></ul><ul><li>Examining opportunitie...
Summary <ul><li>You can benefit from ERHC Energy’s vision and determination </li></ul><ul><li>Exploratory drilling is near...
Contact Information <ul><li>Mr. David Bovell </li></ul><ul><li>Phone: +44-776-873-5695 </li></ul><ul><li>E-mail:  [email_a...
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ERHC Energy Dubai Presentation, October 27, 2008

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  • ERHC Energy Dubai Presentation, October 27, 2008

    1. 1. ERHC Energy (OTCBB: ERHE) Presented October 27, 2008 By David Bovell Vice President Corporate Development
    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 the Senate Subcommittee investigation, developments in the SEC investigation of the Company 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. </li></ul><ul><li>Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms on this Web site, such as &quot;recoverable reserves potential,&quot; that the SEC's guidelines generally prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K. You may review our filing with the SEC at the following Web site: www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000799235 . </li></ul>
    3. 3. Introducing ERHC <ul><li>Based in Houston, Texas USA </li></ul><ul><li>Publicly traded on NASDAQ’s Over the Counter Bulletin Board (OTCBB) – ERHE.OB </li></ul><ul><li>Valuable oil and gas assets in the Gulf of Guinea </li></ul><ul><li>Seeking new assets and business partners </li></ul>
    4. 4. What Makes Us Different <ul><li>Sound strategy and record of accomplishment </li></ul><ul><li>Strong financial position </li></ul><ul><li>Strong leadership </li></ul><ul><li>World class assets </li></ul><ul><li>Strong technical partners </li></ul>
    5. 5. Business Strategy <ul><li>We have created significant opportunities in the Gulf of Guinea and, through strategic alliances, have begun the process of exploiting these. In 2009 progress will be demonstrable. </li></ul>
    6. 6. Strong Cash Position <ul><li>ERHC is well placed to prosper during the credit crunch </li></ul><ul><li>Latest quarterly financial report (Q3 2008): </li></ul><ul><ul><li>Cash assets of $32.4 million USD </li></ul></ul><ul><ul><li>Debt of less than $35,000 </li></ul></ul><ul><li>The credit crunch will create opportunities </li></ul>
    7. 7. <ul><li>“… Those in a weaker position are having to sell assets or find partners for their most promising projects to get the cash infusions they need.” </li></ul><ul><li>Wall Street Journal </li></ul><ul><li>October 7, 2008 </li></ul>
    8. 8. Established Yet Emerging <ul><li>Began trading on OTC in 2001 </li></ul><ul><li>Market cap: $213 million </li></ul><ul><li>Percentage of shares held by insiders: 51.7% </li></ul>
    9. 9. Strong Management <ul><li>Peter Ntephe, Chief Operating Officer </li></ul><ul><li>20 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>Jim Ledbetter, 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>
    10. 10. Strong Board <ul><li>Ambassador (rtd.) Howard Jeter </li></ul><ul><li>Ambassador Jeter was U.S. Ambassador to Nigeria and to 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><li>Andrew Uzoigwe </li></ul><ul><li>Dr. Uzoigwe retired from Nigerian National Petroleum Corporation (NNPC) after holding numerous positions including Group Executive Director. </li></ul><ul><li>Clement Nwizubo </li></ul><ul><li>Mr. Nwizubo is a Certified Public Accountant, and member of America Institute of Certified Public Accountants (AICPA). He is President of Clement E. Nwizubo, CPA, PC. Earlier he was the Manager of Accounting and Financial Reporting at Primerica Corporation and other accounting positions. </li></ul>
    11. 11. World Class Assets <ul><li>ERHC has oil & gas exploration rights in a region of the world that experts believe can produce billions of barrels of oil </li></ul>
    12. 12. Where Do We Believe the Oil Is?
    13. 13. Assets in the Gulf of Guinea <ul><li>Rights in six of the nine blocks of the Joint Development Zone </li></ul><ul><li>Additional preferential rights in the Sao Tome & Principe Exclusive Economic Zone </li></ul>
    14. 14. Highly Prospective Region <ul><li>“ The Gulf of Guinea…is one of the most prolific hydrocarbon provinces in the world, with oil and gas discoveries of more than 10 Bbbl and tremendous potential beyond that level.” </li></ul><ul><li>Dr. Edmund Daukoru </li></ul><ul><li>President of OPEC in 2006 </li></ul>
    15. 15. Nearby Discoveries <ul><li>Significant Discoveries: </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
    16. 16. The JDZ and EEZ <ul><li>JDZ </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>EEZ </li></ul><ul><ul><li>Approximately 160,000 square km area </li></ul></ul>EEZ JDZ
    17. 17. ERHC’s JDZ Interests “ “ No Contracts 35% 5% 35% ERHC Joint Bid Participating Interest 20% 15% 15% 25% 20% 30% ERHC Original Participating Interest 10% 15% Block 3 19.5% 40.5% Block 4 15% No Contracts Block 5 20% “ Block 9 15% “ Block 6 22% 43% Block 2 Current ERHC Interest Participating Interest Sold JDZ Block
    18. 18. Recoverable Reserves Potential <ul><li>The combined recoverable reserves potential in the nine JDZ Blocks is estimated at 14.4 billion barrels </li></ul><ul><li>Source: WesternGeco </li></ul>
    19. 19. Significant Foothold <ul><li>In total, ERHC has 12% of the exploration and production rights awarded in the JDZ by the Joint Development Authority </li></ul>
    20. 20. JDZ Deepwater Blocks JDZ Block 3 (10% WI) Lemba Prospect Addax Estimate: 270 MMbbl for Block JDZ Block 4 (19.5% WI) Kina Prospect Addax Estimate: 1,134 MMbbl for Block JDZ Block 1 ERHC does not have interest JDZ Block 2 (22% WI) Bomu Prospect Addax Estimate: 437 MMbbl for Block
    21. 21. Kina Prospect in JDZ Block 4
    22. 22. Exploration Imminent <ul><li>Operators in three JDZ Blocks in which ERHC has interests have indicated exploratory drilling will commence in 2009 </li></ul>
    23. 23. Full Carry Relationships <ul><li>ERHC has a full carry in JDZ Blocks 2, 3 and 4 </li></ul><ul><li>100% of ERHC’s upfront costs for exploration and production are covered by our technical partners </li></ul><ul><li>Costs will be paid from a portion of profit oil and cost oil </li></ul>
    24. 24. ERHC’s EEZ Interests <ul><li>100% interest in up to two blocks of ERHC’s choice </li></ul><ul><li>Option for up to 15% paid working interest in two blocks of ERHC’s choice </li></ul><ul><li>ERHC responsible for proportionate share of costs </li></ul>EEZ
    25. 25. Strong Technical Partners <ul><li>Addax Petroleum (TSX: AXC and LSE: AXC) </li></ul><ul><ul><li>One of the largest oil producers in West Africa, plus significant production in the Middle East </li></ul></ul>
    26. 26. 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>
    27. 27. ’ 06 Cash Infusion Provides Stability, Opportunity $18.0 $7.5 $20.4 Proceeds of sales (millions)  Addax Block 4:  Addax Block 3:  Sinopec and Addax Block 2: Participating agreement Participating interests sold to JDZ Block
    28. 28. Exploration is Imminent <ul><li>JDZ Block 2 </li></ul><ul><li>Sinopec has secured Joint Development Authority (JDA) approval to drill the Bomu Prospect and the budget is approved </li></ul><ul><li>JDZ Block 3 </li></ul><ul><li>Anadarko has secured JDA approval to drill the Lemba Prospect and the budget is approved </li></ul><ul><li>JDZ Block 4 </li></ul><ul><li>Addax has secured JDA approval to drill the Kina Prospect and the budget is approved </li></ul>
    29. 29. Near-Term Exploration Efforts <ul><li>First Half of 2009 </li></ul><ul><ul><li>ERHC’s technical partners are engaged in a worldwide search for an available deepwater drill ship </li></ul></ul><ul><ul><li>When secured, expect to commence exploration in early 2009 </li></ul></ul>
    30. 30. 2009 Exploration Plans <ul><li>Second Half of 2009 </li></ul><ul><ul><li>Addax and Sinopec have contracted to take possession of Deepwater drill ship Aban Abraham </li></ul></ul>
    31. 31. Corporate Growth Initiative <ul><li>Our growth strategy is to build on our success through additional discoveries of undervalued assets in West Africa </li></ul>
    32. 32. Risk Diversification <ul><li>We will diversify risk by pursuing other growth opportunities by: </li></ul><ul><ul><li>Acquiring revenue-producing assets in diverse geographical areas </li></ul></ul><ul><ul><li>Forging new strategic business partnerships and alliances </li></ul></ul>
    33. 33. Corporate Growth Action Items <ul><li>Leverage technical and geographic expertise </li></ul><ul><li>Examining opportunities: </li></ul><ul><ul><li>North America </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><ul><li>Africa </li></ul></ul>
    34. 34. Summary <ul><li>You can benefit from ERHC Energy’s vision and determination </li></ul><ul><li>Exploratory drilling is nearly ready to begin </li></ul><ul><li>ERHC’s assets are highly prospective </li></ul><ul><li>To accelerate growth we are seeking acquisitions and business partners </li></ul>
    35. 35. Contact Information <ul><li>Mr. David Bovell </li></ul><ul><li>Phone: +44-776-873-5695 </li></ul><ul><li>E-mail: [email_address] </li></ul><ul><li>Web: www.erhc.com </li></ul>

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