Vanguard (Lagos)

Nigeria: ERHC Energy Opens Rights Offering

ERHC Energy Incorporated, a publicly traded American company with oil and gas assets in Sub-Sahara Africa, on Friday, announced that the Company has commenced its previously announced rights offering.

The company in a statement made available to Sweetcrude, said that upon the effectiveness at the close of business last week of ERHC's prospectus supplement filed with the Securities and Exchange Commission, SEC, with respect to the rights offering, ERHC distributed on a pro rata basis to the holders of its common stock non-transferable subscription right on one for every three shares owned as of the close of business on the previously announced December 17, 2012.

It said, "Each subscription right (with the total number of subscription rights issuable to a holder rounded down to avoid the issuance of fractional rights) entitles its holder to purchase one share of the Company's common stock at a subscription price equal to $0.075 per share.

"In addition, holders of subscription rights who fully exercise all of their subscription rights may also request to purchase additional shares of the Company's common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among rights holders exercising such over-subscription right.

The statement also said that the Company will offer up to an aggregate of 246,486,285 shares of its common stock in the rights offering, inclusive of the over-subscription privileges, representing approximately 33 percent of its current outstanding shares of common stock, if fully subscribed.

"The rights offering will terminate at 5:00 p.m., central time on January 31, 2013, unless extended. Holders of rights will need to exercise their subscription rights prior to that time and date," it added.

The Company explained that it planned to apply the capital raised in the rights offering "to fund specific exploration and development activities pursuant to work programs governing its exploration acreage in the Republics of Chad and Kenya, as well as for general corporate purposes and working capital needs."

The Rights Offering is being made by means of the effective prospectus supplement on file with the Securities and Exchange Commission, and holders of subscription rights are urged to read the prospectus supplement carefully. Copies of the prospectus supplement may be obtained from the subscription agent, Corporate Stock Transfer, Inc.

ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in Africa and the development of undeveloped and marginal oil and gas fields.

ERHC added that it is committed to creating and delivering significant value for its shareholders, investors and employees as well as to sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production.

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