ERHC Energy Inc ERHE

Shareholder Update

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ERHC Energy Inc. Issues March 2017 Shareholder Update 

HOUSTON, March 23, 2017 – ERHC Energy Inc. (OTCMKTS:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued the following update on Company activities. 

a. In the light of the current oil-price environment and continued constraints on funding for oil exploration activities, ERHC’s management and board continue working toward a strategic realignment of the Company. 

b. The Company’s new strategic priorities will include a focus on opportunities for cost-efficient entry into production and producing assets. This is in contrast to the pure exploration model which the Company previously ran. 

c. The new focus is intended to open up the Company to new streams and a wider range of financing. 

d. As a result, the Company is carrying out a comprehensive review of its legacy exploration assets with a view to deciding, on an asset-by-asset basis, the feasibility and desirability of retention within the new strategic focus. This review covers of course Kenya Block 11A, Chad Block BDS 2008 and the Gulf of Guinea interests. 

e. With regard to first steps in the drive towards assets at the other end of the E&P value chain, ERHC recently signed a Memorandum of Understanding with Starcrest Nigeria Energy Limited (“Starcrest”) as previously announced. 

f. Starcrest has a significant stake in Elcrest Exploration and Production Company Limited, the holder of 45 percent of Nigeria’s producing OML 40. Starcrest also holds directly OPL 291 and OPL 242 in Nigeria. 

g. ERHC is currently engaging with Starcrest towards the terms of a possible transaction between the two companies. 

h. In addition, ERHC is part of several consortia bidding for producing interests in West Africa with backing from financing partners. 

i. Newstar Oil and Gas, Inc, a wholly owned subsidiary of ERHC, has also been set up to acquire producing assets domestically. 

j. ERHC will be presenting at the 16th Africa Independents Forum in May 2017 in London. This is the premier international forum showcasing independents holding acreage and portfolio assets in Africa. Learn more at https://www.oilgas-events.com/Find-an-Event/Africa-Independents-Forum. 

k. ERHC has reduced costs across board. Investor relations and outreach have been affected but ERHC will endeavor to keep satisfying any mandatory regulatory requirements for disclosure, particularly to shareholders as whole. 

l. ERHC encourages shareholders and others to refer to quarterly and annual filings with the SEC, which can be found at https://erhc.com/secfilings/. 

m. We thank you for your continued interest in ERHC. 

Sincerely, 

Peter Ntephe 
President and Chief Executive Officer