ERHC Energy Presentation to Growth Company Investor Show


Published on

ERHC Energy Vice President Corporate Development, David Bovell, presented this week at the Growth Company Investor Show in London. He gave an overview of the Company's assets, the NSAI estimates of ERHC's prospective resources and the revised growth strategy.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • ERHC Energy Presentation to Growth Company Investor Show

    1. ERHC Energy (OTCBB: ERHE) Presented on 10 th June 2009 at the London “ Growth Company Investor Show 2009” by David Bovell Vice President - Corporate Development
    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: . </li></ul>
    3. Introducing ERHC <ul><li>Based in Houston </li></ul><ul><li>Publicly traded on OTCBB -> ERHE.OB </li></ul><ul><li>Energy focused investment company </li></ul><ul><li>Valuable oil and gas assets in West Africa </li></ul><ul><li>Seeking new assets and opportunities </li></ul>
    4. Established Yet Emerging <ul><li>Began trading on OTC in 2001 </li></ul><ul><li>Current Market cap is </li></ul><ul><li>circa $300 million </li></ul><ul><li>Percentage of shares held </li></ul><ul><li>by insiders: 51.7% </li></ul>
    5. Experienced 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>
    6. 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>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>
    7. Progress <ul><li>We have created significant opportunities in the Gulf of Guinea and, through strategic alliances, have begun the process of exploiting these. By the end 2009 progress will be demonstrable. </li></ul>
    8. 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>
    9. 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
    10. 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
    11. ERHC’s JDZ Interests JDZ Block ERHC Current   Participating Interest Block 2 22% Block 3 10% Block 4 19.5% Block 5 15% Block 6 15% Block 9 20%
    12. 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>
    13. Significant Foothold <ul><li>In total, ERHC has circa 12% of the exploration and production rights awarded in the JDZ by the Joint Development Authority </li></ul>
    14. ERHC Prospective 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
    15. Strong Technical Partners <ul><li>Addax Petroleum </li></ul><ul><li>(TSX: AXC and LSE: AXC) </li></ul><ul><ul><li>One of the largest oil and most successful producers in West Africa, plus significant production in the Middle East </li></ul></ul>
    16. 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>
    17. 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>
    18. Drilling to commence in July 2009 <ul><li>JDZ Block 2 – (Sinopec is Operator) </li></ul><ul><li> Block 2 -> (1 well) – Rig to be announced </li></ul><ul><li>• JDZ Block 3 – (Anadarko is Operator) </li></ul><ul><li>Block 3 -> Deepwater Pathfinder (1 well) </li></ul><ul><li>• JDZ Block 4 – (Addax is Operator) </li></ul><ul><li> Block 4 -> Deepwater Pathfinder (3 wells) </li></ul>Deepwater Pathfinder
    19. 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
    20. Strong Financial Position <ul><li>Well positioned to weather the credit crunch </li></ul><ul><li>Latest quarterly financial report (31March 2009): </li></ul><ul><ul><li>Cash assets of $25 million </li></ul></ul><ul><ul><li>No Debt </li></ul></ul><ul><li>The credit crunch will create opportunities </li></ul><ul><li>Looking to purchase “production” </li></ul>
    21. <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>
    22. Risk Diversification <ul><li>We will diversify risk by pursuing other growth opportunities by: </li></ul><ul><ul><li>Acquiring revenue-producing assets in both Africa and other diverse geographical areas </li></ul></ul><ul><ul><li>Forging new strategic business partnerships and alliances </li></ul></ul>
    23. Corporate Growth Initiative <ul><li>Our growth strategy is to </li></ul><ul><li>build on our success through additional investment in undervalued assets in both Africa and internationally </li></ul>
    24. Corporate Growth Action Items <ul><li>Leverage technical and geographic expertise </li></ul><ul><li>Looking to buy “producing assets” </li></ul><ul><li>Examining acquisitions opportunities in: </li></ul><ul><ul><li>North America </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><ul><li>Middle East </li></ul></ul>
    25. Summary <ul><li>ERHC has an established and unrivaled exploration position </li></ul><ul><li>Drilling is about 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>
    26. Contact Information <ul><li>David Bovell </li></ul><ul><li>Phone: +44-776-873-5695 (UK) </li></ul><ul><li>+1-713-626-4700 (USA) </li></ul><ul><li>E-mail: [email_address] </li></ul><ul><li>Web: </li></ul>