ERHC Energy Inc., an independent oil and gas company with assets in the Gulf of Guinea, announces its results for the fourth quarter and fiscal year ended September 30, 2007.
As of September 30, 2007, ERHC reported cash assets totaling $34.7 million.
During the three months ended September 30, 2007, ERHC had a net loss of $683,037, compared to a net loss of $1,039,670 for the three months ended September 30, 2006. General and administrative expenses during the fourth quarter totaled $1,377,372, a reduction of 12 percent compared to the same period a year earlier.
For the fiscal year ended September 30, 2007, ERHC had a net loss of $1,756,904, compared to a net income of $23,171,536 for fiscal 2006. The decrease in net income was due primarily to the one-time a $30.1 million net gain from sale of participating interests in Blocks 2, 3 and 4 of the Joint Development Zone (JDZ). For the year, general and administrative expenses fell below $5 million. The decrease of 17 percent was a result of strict cost controls implemented by Company leadership.
“ERHC Energy has strengthened its fundamentals, with improved operational efficiencies, solid finances and continued strong relationships with strategic allies Addax Petroleum and Sinopec,” said Nicolae Luca, acting chief executive officer. “With exploratory drilling possible in JDZ Blocks 2 and 4 within the next calendar year, we expect to begin realizing the benefits of our strategy for orderly growth.”
ERHC Energy holds exploration rights in six JDZ blocks. Additionally, subject to certain restrictions, ERHC holds the right to receive up to two blocks of ERHC’s choice in Sao Tome’s Exclusive Economic Zone (EEZ) and holds the option to acquire up to 15 percent paid working interest in up to two additional blocks of ERHC’s choice in the EEZ.
