enercom london conference th june 2011edg1.vcall.com/slides/164866/slides.pdf · " erhc energy...

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1 Enercom London Conference 16 th June 2011

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Page 1: Enercom London Conference th June 2011edg1.vcall.com/slides/164866/slides.pdf · " ERHC Energy Inc. is a U.S. based energy investment company focused on West Africa" Engages in the

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Enercom London Conference16th June 2011

Page 2: Enercom London Conference th June 2011edg1.vcall.com/slides/164866/slides.pdf · " ERHC Energy Inc. is a U.S. based energy investment company focused on West Africa" Engages in the

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Cautionary StatementCautionary Statement

Statements during this presentation may concern ERHC Energy Inc.’s future operating milestones, future drilling operations, theplanned exploration and appraisal program, future prospects, future investment opportunities and financing plans, futureshareholders’ meetings, response to U.S. governmental authority and related proceedings, as well as other matters that are nothistorical facts or information. Such statements are inherently subject to a variety of risks, assumptions and uncertainties thatcould cause actual results to differ materially from those anticipated, projected, expressed or implied. A discussion of the riskfactors that could impact these areas and the Company’s overall business and financial performance can be found in theCompany’s reports and other filings with the Securities and Exchange Commission. These factors include, among others, thoserelating to the Company’s ability to exploit its commercial interests in the JDZ and the exclusive territorial waters of São Tomé andPríncipe, general economic and business conditions, changes in foreign and domestic oil and gas exploration and productionactivity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance withgovernmental 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 thedate of hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to anyforward-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.

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Company SnapshotCompany Snapshot

• Bulletin Board (OTCBB) – ERHE.OB• Founded in 1986• Market cap: ±$100 million• Owns Valuable E&P assets in the Gulf of Guinea• Incorporated in Colorado and based in Houston, TX

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Corporate ProfileCorporate Profile

Corporate Summary:• ERHC Energy Inc. is a U.S. based

energy investment company focused on West Africa

• Engages in the exploration and exploitation of oil and gas reserves in the Gulf of Guinea offshore of West Africa

• Insiders own 51.7% of outstanding shares

• ERHC has no outstanding debt

Financial Summary:

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Shares Outstanding (millions) 738

Market Capitalization $75 – 100Debt nilCash $17

US$m

Annual cash burn $4

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Experienced BoardExperienced Board

• Ambassador (rtd) Howard JeterWas 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.

• Dr. Andrew UzoigweA Stanford-trained Engineer, retired from the Nigerian National Petroleum Corporation (NNPC) after holding top positions including Group Executive Director (Exploration and Production).

• Les BlairHas 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.

• Friday OviaweA Certified Public Accountant and Chartered Banker, has extensive financial and accounting experience in Nigeria and the United States.

• Peter NtepheHas 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.

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Experienced Technical Team

• Dr. Ken Seymour, Petroleum EngineerWorked in E&P for over 30 years. He has extensive experience in Africa, particularly in Angola and Nigeria. Previously worked for E.ON, Shell, BP, ExxonMobil and CNR International. Based in Nigeria.

• Daniel Gralla, Petroleum EngineerHas 25 years of technical experience working for both major and independent E&P companies worldwide. He has extensive off-shore experience with his primary responsibility being ERHC’s activities in the Nigeria-São Tomé and Príncipe Joint Development Zone. Based in the USA.

• Michael Shafie, GeoscientistHas 29 years of experience in E&P having worked in deep water provinces of West Africa, the U.S., Malaysia, Vietnam, Egypt, Venezuela and Black Sea. Previously worked for El Paso, Unocal, Petronas, PDVZA, OXY USA and Vanco Energy. His primary responsibility is new project evaluations. Based in the USA.

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ERHC in the Gulf of GuineaERHC in the Gulf of Guinea

• Rights in six of the nine blocks of the Joint Development Zone

• 100% of two blocks and other rights in the Sao Tome & Principe Exclusive Economic Zone

• Exploring other opportunities in the Gulf of Guinea and further afield along the West African margin

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The JDZ The JDZ and DRSTP EEZand DRSTP EEZ

Joint Development Zone– 34,548 km2 area– Approximately 200 km off the

coastline of Nigeria and São Tomé & Principe

Exclusive Economic Zone– 160,000 km2 area

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Nearby DiscoveriesNearby Discoveries

Bonga

Agbami

Ikija-1

Akpo-1

Ukot

Nnwa-2

Significant Discoveries near ERHC:– Bonga: 700 million barrels– Ikija-1: 500 million barrels– Agbami: 1 billion barrels– Nnwa-2: Gas discovery– Akpo-1: 500 million barrels– Ukot: Oil discovery

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Strong Technical Strong Technical PartnersPartners

• Sinopec (NYSE: SNP)Operates an integrated oil and gas and chemical company in the People’s Republic of China and Hong Kong.

• Addax Petroleum*One of the largest and most successful oil producers in West Africa, plus significant production in the Middle East.

* NB. August 2009: Completion of takeover of Addax by Sinopec.

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JDZ JDZ InterestsInterests

JDZ Block Current ERHC Interest

Block 2 22%

Block 3 10%

Block 4 19.5%

Block 5 15%

Block 6 15%

Block 9 20%

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In total, ERHC has approximately 12% of the exploration and production rights awarded in the JDZ by the Joint Development Authority.

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JDZ Exploration ProgressJDZ Exploration Progress

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• Initial Five-well drilling campaign completed in January 2010

• Over $300m expended• Biogenic methane gas discovered

across all three ERHC Blocks • Block 2 Exploration Phase I extended

by one year to March 2012• Block 3 and 4 announcement expected

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STP EEZ StatusSTP EEZ Status

• ERHC exercised its preferential rights in 2010

• Based on analysis of prospectivity, selected EEZ Blocks 4 and 11 prior to start of licensing round

• Signature bonus free

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Sao Tome & Principe EEZSao Tome & Principe EEZ

• Expect to enter into negotiations on Production Sharing Contracts in 2011

• Block 4 - 5,808km2

• Block 11 - 8,941km2

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STP EEZ BathymetrySTP EEZ Bathymetry

• Water depth ranging from 90m around islands to >3500m

• Shallowest regions to the east• STP EEZ region exhibits an

anomalously thick sedimentary section for oceanic region

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Growth StrategyGrowth Strategy& Diversification& Diversification

• Management intends to diversify ERHC's portfolio both:- Geographically, but focused on Africa; - Life cycle, acquiring assets closer to production

• Acquisitions will reduce risk and give the Company bookable proven reserves so bringing ERHC closer to revenue generation

• Acquiring significant equity stakes in African focused E&P companies where material synergistic benefits are possible

• ERHC has a US$50m “shelf registration” in place

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Exile Resources Inc.Exile Resources Inc.

• ERHC holds ±7.5% equity stake in Exile Resources (ERI)• ERI is listed on the TSX-V, current market cap C$10 – 12m• Primary asset is a carried 10% working interest in the Akepo Field (OML90) in

Nigeria with production expected in 2011• DeGolyer and MacNaughton appraisal of net light crude attributable to ERI(10%):

- 1P = 39 Mbbl- 2P = 200 Mbbl- 3P = 596 Mbbl

• Strategic holding for ERHC

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AIM Listing

• Appointed Advisers:• Strand Hanson – NOMAD and Sponsor• Grant Thornton – Reporting Accountant • Akin Gump – Company Legal Advisor • Hunton & Williams – NOMAD Legal Advisor • Netherland Sewell – CPR

• Listing date target Q4 - 2011

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Contact: David Bovell

VP – Corporate [email protected] +44-776-873-5695