Erhc Energy Inc · OTC:ERHE
Erhc Energy — Investor Presentation (November 2011)
46 slides from Erhc Energy's investor presentation, November 2011
Slide 1: www.erhc.com
www.erhc.com 1
Slide 2: Cautionary Statement
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, respon
Slide 3: Introducing ERHC
Introducing ERHC • Valuable E&P assets in Sub-Saharan Africa • Incorporated in Colorado and based in Texas, USA • Publicly traded on the U.S. Over the Counter Bulletin Board (OTCBB) – ERHE.OB • Market cap: ±$70 million – November 2011 3
Slide 4: Uniqueness of ERHC
Uniqueness of ERHC • Home field advantage – Management and board connected with the region – Significant investment by African business interests • Proven record of getting things done 4
Slide 5: ERHC Board of Directors
ERHC Board of Directors Leslie Blair Ambassador (rtd) Andrew C. Uzoigwe Friday Oviawe, CPA Peter Ntephe, CEO Howard Jeter 5
Slide 6: Experienced Board
Experienced Board • Ambassador (rtd) Howard Jeter – Was 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 Uzoigwe – A Stanford-t
Slide 7: ERHC Technical Team
ERHC Technical Team Dr. Ken Seymour Dr. Peter Thuo Gertjan van Mechelen Michael Shafie Martin Wensrich 7
Slide 8: ERHC Technical Team
ERHC Technical Team • Dr. Ken Seymour, Petroleum Engineer – Has worked in E&P for over 30 years. He has extensive experience in Africa, particularly in Angola and Nigeria. His key competencies include E& P deal creation and asset acquisition, portfolio management, joint venture and asset management,
Slide 9: ERHC Management Team
ERHC Management Team Peter C. Ntephe Sylvan Odobulu Reginald Sewell President & CEO Vice President, Corporate Counsel Administration and Financial Controller 9
Slide 10: Strong Management
Strong Management • Peter Ntephe, Chief Executive Officer Over 24 years of experience. Has been involved in fundamental aspects of the Company's executive management since 2001 and oversees the general administration and governance of ERHC and its subsidiaries, ensuring the group meets its strategic
Slide 11: Brief Overview of O&G Assets
Brief Overview of O&G Assets • Three oil • 100% of two blocks blocks in and other rights in Republic of the Sao Tome & Chad Principe Exclusive Economic Zone • One oil block in northwest • Rights in six of the Kenya nine blocks of the Joint Development Zone 11
Slide 12: I. ERHC's Interests in the Republic of Kenya
I. ERHC’s Interests in the Republic of Kenya 12
Slide 13: Briefing: East Africa
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 13
Slide 14: Kenya Block 11A
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 14
Slide 15: Recent Exploration Success
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 oi
Slide 16: Republic of Kenya
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 16
Slide 17: II. ERHC's Interests in the Republic of Chad
II. ERHC’s Interests in the Republic of Chad 17
Slide 18: Briefing: Republic of Chad
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 18
Slide 19: Republic of Chad
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 Blnb
Slide 20: Chari-Ouest II
Chari-Ouest II oFaya =—s asaakily Py xe mnt aber as = Laimedll Masse’ BDS 2008
Slide 21: ERHC's Exploration Blocks in Chad
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% 21
Slide 22: Adjacent to Doba Basin Oilfield
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 22
Slide 23: Chari-Ouest 3
Chari-Ouest 3 • ERHC has 100% interest in half of the block • 4,500 sq. km. • Adjacent to OPIC’s Benoy 1 discovery • Analysis determined Block falls within the prolific Doba/Doseo Basin 23
Slide 24: BDS 2008
BDS 2008 • 16,360 sq. km. • Virtually surrounds the Bongor West block • Bordered to the south by Chari East-Doseo block • Analysis determined Block falls within the prolific Doba/Doseo Basin 24
Slide 25: Manga Block
Manga Block • 6,477 sq. km. • Intersected by the Borkou- Ennedi Sub-basin • North of Lake Chad basin where exploration work is underway 25
Slide 26: Prospectivity of ERHC Blocks
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
Slide 27: Chad / Cameroon Pipeline System
Chad / Cameroon Pipeline System • Distance: 1,070 km • Size: 30 inch • Capacity: 225,000 BOPD expandable to 600,000 BOPD • Current Delivery: 120,000 BOPD • Owners: Consortium of Chad and Cameroon Governments 27
Slide 28: III. São Tomé & Principe Exclusive Economic Zone
III. São Tomé & Principe Exclusive Economic Zone 28
Slide 29: Briefing: São Tomé & Principe
Briefing: São Tomé & Principe • In the Gulf of Guinea, off the coast of West Africa, 150 miles from Gabon • Government: Robust and Stable Democracy • Capital: São Tomé • Population: 160,000 (estimate 2007) • Official Language: Portuguese 29
Slide 30: Sao Tome & Principe EEZ
Sao Tome & Principe EEZ ERHC ENERGY 5444 Westheimer Road, Suite 1440 Houston, Texas 77056 713.626.4700 Tel | 713.626.4704 Fax www.ethe.com Ticker: ERHE.OB
Slide 31: Good quality 2D and 3D seismic data acquired by PGS
Good quality 2D and 3D seismic data acquired by Petroleum Geo- Services (PGS) 31
Slide 32: DRSTP EEZ Status
DRSTP EEZ Status • ERHC holds EEZ Blocks 4, 11 (100%) • Signature bonus free • Will consider bidding for15% interests in two other Blocks 32
Slide 33: EEZ Block 4 Analysis
EEZ Block 4 Analysis • Totals 5,808 square km • Situated directly east of the island of Príncipe • Block situated to the west of the highly prospective Gabon Salt Basin • Area near EEZ Block 4 contains a large graben structure, which is bound by the Kribi Fracture Zone 33
Slide 34: EEZ Block 11 Analysis
EEZ Block 11 Analysis • Totals 8,941 square km • Situated directly east of the island of São Tomé • Abuts territorial waters of Gabon • Situated to the west of the highly prospective Gabon Salt Basin • The Southern area of the EEZ contains parts of the Ascension and Fang Fracture Zones 34
Slide 35: ERHC's EEZ Blocks West of Gabon's Discoveries
ERHC’s EEZ Blocks are situated directly to the West of Gabon’s many offshore oil discoveries 35
Slide 36: PSC Negotiations
PSC Negotiations Negotiations of Production Sharing Contracts for EEZ Blocks 4 and 11 are underway 36
Slide 37: IV. Nigeria - Sao Tome & Principe Joint Development Zone
IV. Nigeria - Sao Tome & Principe Joint Development Zone 37
Slide 38: ERHC's JDZ Interests
ERHC’s JDZ Interests JDZ Block Current ERHC Interest Block 2 22.0% Block 3 10.0% Block 4 19.5% Block 5 15.0% Block 6 15.0% Block 9 20.0% 38
Slide 39: Capital Preservation
Capital Preservation • ‘Carry’ arrangements with technical partners in JDZ Blocks 2, 3 and 4 • Costs of exploration borne by partners • Cost recovery from production 39
Slide 40: JDZ Exploration
JDZ Exploration • Five-well drilling campaign completed in January 2010 • Over $300m expended • Biogenic methane gas discovered • Analysis continuing 40
Slide 41: Nearby Discoveries
Nearby Discoveries Agbami Akpo-1 Significant Discoveries: Bonga Ukot – Bonga: 600 MMBOE Ikija-1 Nnwa-2 – Ikija-1: 500 MMBOE – Agbami: 1,000 MMBOE – Nnwa-2: Gas discovery – Akpo-1: 500 MMBOE – Ukot: 200-300 MMBOE 41
Slide 42: Expected Q3 2012
Expected Q3 2012 • Expiration of Exploration Phase I on March 14, 2012 • Parties to propose next steps • Joint Development Authority to determine how to proceed 42
Slide 43: IV. Growth through Strategic Acquisitions
IV. Growth through Strategic Acquisitions 43
Slide 44: Acquisition Strategy
Acquisition Strategy • Aggressively pursuing E&P opportunities throughout Sub- Saharan Africa • Particular interest in new frontiers in West and East Africa • Opportunistic acquisitions of undervalued corporates with operations in Sub-Saharan Africa 44
Slide 45: Strategic Objectives
Strategic Objectives • Diversify portfolio of assets and complement current holdings – Geographically – Development lifecycle • Accelerate pace of revenue generation
Slide 46: www.erhc.com
www.erhc.com 46