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London Court of International Arbitration Clarifies JDZ Block 4 Interests


ERHC Energy

2008-07-15 15:21:00

London Court of International Arbitration Clarifies JDZ Block 4 Interests

Tribunal Awards Addax Petroleum 7.2 Percent, ERHC 1.8 Percent

LONDON–(EMWNews – July 15, 2008) – ERHC Energy Inc. (OTCBB: ERHE), a publicly traded

American company with oil and gas assets in the highly prospective Gulf of

Guinea off the coast of central West Africa, today announced a resolution

to its arbitration with Addax Petroleum Corporation regarding a nine

percent portion of Joint Development Zone (JDZ) Block 4. A three-member

tribunal of the London Court of International Arbitration (LCIA) confirmed

that under the Participation Agreement between the parties no further

consideration is payable by Addax Petroleum to ERHC for Addax Petroleum’s

7.2 percent share of the nine percent. ERHC is entitled to the remaining

1.8 percent out of the nine percent.

The nine percent became available for distribution between ERHC and Addax

Petroleum after it was recovered from another consortium partner that had

failed to meet certain obligations.

“We are pleased to have the distribution of the nine percent resolved so

that we and our consortium partner can focus entirely on starting drilling

in JDZ Block 4 as quickly as possible,” said ERHC Chief Operating Officer

Peter Ntephe. “Throughout this process, ERHC and Addax Petroleum have

maintained their close working relationship.”

The combined share of JDZ Block 4 held by ERHC and Addax Petroleum under

the Participation Agreement is 60 percent. Following the ruling by the LCIA

tribunal, ERHC’s share of JDZ Block 4 increased from 17.7 percent to 19.5

percent. Addax Petroleum, the operator of the Block, saw its share of JDZ

Block 4 increase from 38.3 percent to 45.5 percent, which includes a five

percent interest acquired independently by Addax from a third party.

ERHC Energy has interests in six of the nine Blocks in the offshore JDZ

between Nigeria and the Democratic Republic of São Tomé & Príncipe. The

Company has additional interests in the territorial waters of Democratic

Republic of São Tomé & Príncipe known as the Exclusive Economic Zone (EEZ).

About ERHC Energy

ERHC Energy Inc. is a Houston-based independent oil and gas company focused

on growth through high impact exploration in the highly prospective Gulf of

Guinea and the development of undeveloped and marginal oil and gas fields.

ERHC is committed to creating and delivering significant value for its

shareholders, investors and employees, and to sustainable and profitable

growth through risk balanced smart exploration, cost efficient development

and high margin production. For more information, visit

Cautionary Statement

This press release 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 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.

Dan Keeney, APR
DPK Public Relations

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