2. Cautionary Statement
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
2 and the Company’s overall
business and financial
performance can be found in
3. Today’s Presenters
• Peter Ntephe, president and chief executive officer
• Sylvan Odobulu, ERHC’s vice president in charge of operations and financial
matters.
• Gertjan van Mechelen, ERHC’s senior geoscientist and exploration manager
• Dr. Ken Seymour, ERHC’s senior petroleum engineer
• Mike Shafie, ERHC’s senior geoscientist.
• Dr. Peter Thuo, ERHC’s geoscientist and resident Kenya technical expert
• And Reginald Sewell, ERHC’s legal counsel who practices with Warner &
Associates
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4. • As of June 30th, 2012, ERHC had cash and cash equivalents totaling about $8.4
million.
• Management believes that these cash assets are sufficient to keep the company
going for more than 12 months.
• During the third quarter, ERHC's general and administrative expenses totaled
slightly over one million dollars, which represented a slight increase compared to
the third quarter of 2011.
• Detailed financial results are contained in our quarterly report, form 10Q, which
was filed on August 8th, 2012. The report is accessible through the investor
center on our website.
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6. Briefing:
East Africa
• Emerging as one of the world’s most
exciting, new oil provinces
• An estimated 2,000 MMBOE
discovered in Lake Albert Rift Basin
in Uganda’s Block 1 (EA1)
• Large gas discoveries, including the
recent Zafarani find, offshore
Tanzania
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7. Kenya Block 11A
• Encompasses 11,950 square kilometers
or 2.95 million acres
• Situated on Kenya’s border with South
Sudan to the north, Block 11B and Lake
Turkana to the east and near Kenya’s
border with Uganda to the west
• In the vicinity of recent significant
discoveries
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8. Recent Exploration Success
•Eliye Springs well is in the adjacent Block 10BA
•Loperot and Ngamia-1 wells in Block 10BB are
also nearby
Northwest Kenya
The proximity and in-trend
relationship between the
Lotikipi plain and the Abu
Gabra Rift basins of southern Regional Geology
Sudan suggest high oil and The area is dominated by the Cretaceous
gas prospectivity Central Africa Rift System (CARS) and the
Tertiary East Africa Rift System (EARS) with
the associated basin depositional trends
Regional Geology
Similar to Uganda Finds Gravity data enabled the delineation of a
Operator Tullow estimates the sedimentary basin within the Block 11A
discoveries may be similar in area below the Lotikipi plain with a
size to the Lake Albert Rift Basin basin-fill believed to be in excess of
in Uganda, which are estimated 5,000 meters
at 2,000 MMBOE
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9. Republic of Kenya
• Eliye Springs well is in adjacent Block 10BA
• The Loperot and Ngamia-1 wells in Block 10BB
are nearby
• The Loperot well recovered light paraffinic oil
sourced from an excellent type 1 oil-prone
lacustrine shale
• The Ngamia-1 well has encountered significant
oil columns
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11. Briefing:
Republic of Chad
• One of sub-Saharan Africa’s significant
crude oil producers
• Shares borders with oil producing
nations Nigeria, Libya, Sudan and
Cameroun
• U.S. companies have invested $3.7
billion to develop oil reserves -
estimated at 1 billion barrels
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12. Republic of Chad
•Proven Reserves are 1.5 Billion Bbls
Source International Petroleum Encyclopedia
Niger
•Undeveloped Discoveries are 2.6 Billion Bbls, and
CNPC largest player 14.6 TCF of Gas
Current Production: ~17,000 bbl/d Source USGS, World Petroleum Resources Project
Unconfirmed EUR: 1.0 Blnbbl
Continue to explore
Sudan All Fields
Key Operators: CNPC & Consortiums
Ndjamena Refinery
ERHC BLOCKS Current Production: 465,000 bbl/d
Peak Production: 538,000 bbl/d (2011)
Operator: CNPC
Reserves (remaining): 1.96 Bln bbls
Capacity: 20,000 bbl/d expandable
EUR: 3.0 Bln bbls
to 60,000 bbl/d
Key basins: Muglad, Melut
Online Date: June 2011
Wells Drilled: 300
Supply: Block H Area II (CNPC)
Commercial & Technical Success: 60%
Block H Area II Greater Nile Oil Project
Operator: CNPC (Former EnCana) Operator: GNPOC (Formerly Arakis)
Expected Production: ~17,000 bbl/d Current Production: 203,000 bbl/d
Reserves (remaining): 85 MMbbl Peak Production: 300,000 bbl/d (2004)
OOIP: 700 mmbbl (CNPC) Reserves (remaining): 662 MMbbl
Continue to explore EUR: 1.49 Bln bbl
Chad/Cameroon Pipeline Chari Ouest - Doba Basin
Operator: Exxon Operator: Exxon (Esso)
Capacity: 225,000 bbl/d Current Production: 115,000 bbl/d
Utilization: 115,000 bbl/d Peak Production: 220,000 (2004)
Distance: 1,070 km Reserves (remaining): 462 MMbbl
12 Port: Cameroon loading EUR: 795 mmbbl
Expandable by adding pump stations
14. ERHC’s Exploration
Blocks in Chad
Block Sq. Km. Acres Working
Interest
Chari-Ouest III 4,500 1,111,974 50%
BDS 2008 16,360 4,042,644 100%
Manga 6,77 1,600,501 100%
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15. Adjacent to Doba
Basin Oilfield
CHARI-QUEST III BDS 2008
Chari-Ouest 3
BDS 2008
• Consortium led by
U.S. majors
ExxonMobil and
ChevronTexaco
• In 2010, had an
average daily
production of 122,500
ERHC Blocks
barrels of crude oil
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16. Prospectivity of
ERHC Blocks
• Focus area extends 260 km. and is on
trend and east of OPIC discovery and
north of Esso discoveries
• The ERHC team expects to find at least
three prospects with a 30 percent chance
of success on ERHC’s blocks
• ERHC estimates a combined mean
potential of 63 MMBOE and the upside
exceeds 332 MMBOE
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23. Exile Resources
• In July, the remaining regulatory hurdles related to the
reverse takeover by Oando Exploration and Production had
been cleared
• The company has been renamed Oando Energy Resources
Inc. and admitted to trading on the Toronto Stock Exchange
under the ticker ‘OER’
• ERHC continues to hold an interest in the re-formed
company
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25. Fund Raising:
Rationale
• Exploration activities in Kenya and Chad will require
considerable investment
• The EEZ is also expected to come into the frame of
exploration within a few months
• Exploration is expected to significantly increase the
prospectivity and value of our assets and have a positive
effect on shareholder value
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26. Fund Raising Plans
• The Board and management, in conjunction with our
financial and legal advisers, have carefully considered
ERHC’s available options and formulated a funding strategy
that is expected to involve the following:
– Rights issuances to existing shareholders
– Direct placements to new shareholders or strategic investors
– Farm-outs of part of our interests in the assets to interested E&P
companies or strategic investors
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27. Fund Raising: Goals
• ERHC is simultaneously continuing work on farm-outs
– Involve selling some of the interests in our PSCs to raise money and spread
risk by reducing ERHC’s financial obligations on the work programs
• We have more exciting assets in view across Africa
– Our goal: to become one of the largest holders of exploration acreage on the
continent and one of the most successful in exploiting them
• We are rapidly making the transition from a passive holder of deep
offshore licenses concentrated in one area to a company with a
diversified portfolio of onshore and offshore assets across many
different countries
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28. Q&A
To ask a question, call 888-669-0676 (US & Canada) or
201-604-0467 (international)
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