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EX-32.2 - EXHIBIT 32.2 - ERHC Energy Incex32_2.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 0-17325

(Exact name of registrant as specified in its charter)

Colorado
 
88-0218499
(State of Incorporation)
 
(I.R.S. Employer Identification No.)

5444 Westheimer Road
Suite1440
Houston, Texas 77056
(Address of principal executive offices, including zip code)

(713) 626-4700
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and, (2) has been subject to such filing requirements for the past 90 days.  Yes x     No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer 
Accelerated filer o
Non-accelerated filer 
Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o   No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

The number of shares of common stock, par value $0.0001 per share, outstanding as of July 31, 2015, was 2,871,151,742



TABLE OF CONTENTS
ERHC ENERGY INC.

Part I. Financial Information
Page
   
Item 1.
5
     
 
5
     
 
6
     
 
7
     
 
8
     
 
9
     
Item 2.
16
     
Item 3.
28
     
Item 4.
28
     
Part II. Other Information
 
     
Item 1.
29
     
Item 6.
31
     
 
32
 
Forward-Looking Statements

ERHC Energy Inc. (also referred to as "ERHC" or the "Company" and denoted by the use of the pronouns "we," "our" and "us" as the case may be in this Report) or its representatives may, from time to time, make or incorporate by reference certain written or oral statements of historical fact, statements  that  include, but are not limited to, information concerning the Company's possible or assumed future business activities and results of operations and statements about the following subjects:

business strategy;

growth opportunities;

future development of concessions, exploitation of assets and other business operations;

future market conditions and the effect of such conditions on the Company's future activities or results of operations;

future uses of and requirements for financial resources;

interest rate and foreign exchange risk;

future contractual obligations;

outcomes of legal proceedings including;

future operations outside the United States;

competitive position;

expected financial position;

future cash flows;

future liquidity and sufficiency of capital resources;

future dividends;

financing plans;

tax planning;

budgets for capital and other expenditures;

plans and objectives of management;

compliance with applicable laws; and,

adequacy of insurance or indemnification.

These types of statements and other forward-looking statements inherently are subject to a variety of assumptions, risks and uncertainties that could cause actual results, levels of activity, performance or achievements to differ materially from those expected, projected or expressed in forward-looking statements.  These risks and uncertainties include, among others, the following:

general economic and business conditions;
 
worldwide demand for oil and natural gas;
 
changes in foreign and domestic oil and gas exploration, development and production activity;

oil and natural gas price fluctuations and related market expectations;

termination, renegotiation or modification of existing contracts;

the ability of the Organization of Petroleum Exporting Countries, commonly referred to as "OPEC", to set and maintain production levels and pricing, and the level of production in non-OPEC countries;

policies of the various governments regarding exploration and development of oil and gas reserves;

advances in exploration and development technology;

the political environment of oil-producing regions;

political instability in the Democratic Republic of Săo Tomé and Príncipe ("DRSTP"), the Federal Republic of Nigeria, Republic of Kenya, and the Republic of Chad;

casualty losses;

competition;

changes in foreign, political, social and economic conditions;

risks of international operations, compliance with foreign laws and taxation policies and expropriation or nationalization of equipment and assets;

risks of potential contractual liabilities;

foreign exchange and currency fluctuations and regulations, and the inability to repatriate income or capital;

risks of war, military operations, other armed hostilities, terrorist acts and embargoes;

regulatory initiatives and compliance with governmental regulations;

compliance with tax laws and regulations;

customer preferences;

effects of litigation and governmental proceedings;

cost, availability and adequacy of insurance;

adequacy of the Company's sources of liquidity;

labor conditions and the availability of qualified personnel; and,

various other matters, many of which are beyond the Company's control.

The risks and uncertainties included here are not exhaustive.  Other sections of this report and the Company's other filings with the U.S. Securities and Exchange Commission ("SEC") include additional factors that could adversely affect the Company's business, results of operations and financial performance.  Given these risks and uncertainties, investors should not place undue reliance on our statements concerning future intent.   Our statements included in this report speak only as of the date of this report.  The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any of our statements to reflect any change in its expectations with regard to the statements or any change in events, conditions or circumstances on which any forward-looking statements are based.
 
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ERHC ENERGY INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS

   
June 30,
2015
   
September 30,
2014
 
ASSETS
       
         
Current assets:
       
Cash and cash equivalents
 
$
837,945
   
$
2,182,406
 
Investment in Oando Energy Resources
   
386,304
     
671,402
 
Deferred debt origination cost – short term
   
78,842
     
147,079
 
Prepaid expenses and other
   
232,869
     
246,922
 
                 
Total current assets
   
1,535,960
     
3,247,809
 
                 
Oil and gas concession fees
   
6,074,758
     
6,006,235
 
Furniture and equipment, net of accumulated depreciation of $426,770 and $368,587 at June 30, 2015 and September 30, 2014
   
150,711
     
206,273
 
Deferred debt origination cost – long term
   
-
     
43,755
 
Income tax receivable
   
2,018,533
     
2,018,533
 
Prepaid expenses – long term
   
35,550
     
172,433
 
                 
Total assets
 
$
9,815,512
   
$
11,695,038
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
Current liabilities:
               
Accounts payable and accrued liabilities
 
$
228,871
   
$
379,639
 
Convertible note payable, net of discount – short term
   
276,662
     
625,533
 
Derivative liability – short term
   
519,029
     
751,404
 
                 
Total current liabilities
   
1,024,562
     
1,756,576
 
                 
Convertible note payable, net of discount – long term
   
8,665
     
38,076
 
Derivative liability – long term
   
104,564
     
270,538
 
                 
Total liabilities
   
1,137,791
     
2,065,190
 
Commitments and contingencies:
               
                 
Shareholders' equity:
               
Preferred stock, par value $0.001; authorized 10,000,000 shares; none issued and outstanding
   
-
     
-
 
Common stock, par value $0.0001; authorized 3,000,000,000 shares; issued and outstanding 2,734,322,836 and 765,194,088 shares at June 30, 2015 and September 30, 2014
   
273,432
     
76,520
 
Additional paid-in capital
   
105,381,578
     
101,080,306
 
Accumulated other comprehensive loss
   
(963,696
)
   
(678,598
)
Accumulated deficits
   
(96,013,593
)
   
(90,848,380
)
                 
Total shareholders' equity
   
8,677,721
     
9,629,848
 
                 
Total liabilities and shareholders' equity
 
$
9,815,512
   
$
11,695,038
 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
ERHC ENERGY INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Three Months Ended June 30,
   
Nine Months Ended June 30,
 
   
2015
   
2014
   
2015
   
2014
 
                 
Costs and expenses:
               
General and administrative
 
$
685,010
   
$
719,943
   
$
2,034,178
   
$
2,634,430
 
Exploration expenses
   
73,000
     
242,179
     
520,914
     
461,933
 
Depreciation
   
19,467
     
14,275
     
58,183
     
52,834
 
Gain on sale of partial interest on sale of concessions
   
-
     
-
     
(239,515
)
   
(2,724,793
)
                                 
Total costs and expenses
   
(777,477
)
   
(976,397
)
   
(2,373,760
)
   
(424,404
)
                                 
Other income and (expenses):
                               
Interest income
   
1,062
     
1,592
     
1,975
     
3,804
 
Gain (loss) on mark to market of derivative liabilities
   
(216,097
)
   
(16,496
)
   
(150,348
)
   
(16,496
)
Loss on embedded derivative
   
(90,001
)
   
(111,156
)
   
(1,349,261
)
   
(111,156
)
Gain on insurance recovery for loss on deposit
   
-
     
-
     
291,280
     
-
 
Interest expense
   
(435,938
)
   
(24,708
)
   
(1,585,099
)
   
(24,708
)
                                 
Total other income and (expense)
   
(740,974
)
   
(150,768
)
   
(2,791,453
)
   
(148,556
)
                                 
Loss before benefit (provision) for income taxes
   
(1,518,451
)
   
(1,127,165
)
   
(5,165,213
)
   
(572,960
)
                                 
Benefit (provision) for income taxes:
                               
Current
   
-
     
-
     
-
     
-
 
Deferred
   
-
     
-
     
-
     
-
 
                                 
Total benefit (provision) for income taxes
   
-
     
-
     
-
     
-
 
                                 
Net loss
 
$
(1,518,451
)
  $
(1,127,165
)
 
$
(5,165,213
)
 
$
(572,960
)
                                 
Net loss per common share -basic and diluted
 
$
(0.00
)
 
$
(0.00
)
 
$
(0.00
)
 
$
(0.00
)
                                 
Weighted average number of common shares outstanding basic and diluted
    2,284,217,737      
764,917,468
     
1,349,504,099
     
764,871,996
 

 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
ERHC ENERGY INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS)
 
   
Three Months Ended June 30,
   
Nine Months Ended June 30,
 
   
2015
   
2014
   
2015
   
2014
 
 
Net loss
 
$
(1,518,451
)
 
$
(1,127,165
)
 
$
(5,165,213
)
 
$
(572,960
)
 
Other comprehensive (loss) income on available for sale securities
   
(44,352
)
   
251,088
     
(285,098
)
   
196,254
 
                                 
Other comprehensive loss
 
$
(1,562,803
)
 
$
(876,077
)
 
$
(5,450,311
)
 
$
(376,706
)
 
The accompanying notes are an integral part of these unaudited consolidated financial statements
 
ERHC ENERGY INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS


   
Nine Months Ended June 30,
 
   
2015
   
2014
 
Cash Flows From Operating Activities:
       
Net loss
 
$
(5,165,213
)
 
$
(572,960
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
               
Depreciation and depletion expense
   
58,183
     
52,834
 
Compensatory stock options
   
-
     
6,957
 
Loss on embedded derivative
   
1,349,261
     
111,156
 
Loss on change in fair value of derivative
   
150,348
     
16,496
 
Gain on sale of partial interest in Kenya concession
   
(239,515
)
   
(4,175,966
)
Amortization of convertible debt discount
   
1,229,381
     
7,307
 
Amortization of debt issuance costs
   
160,518
     
10,955
 
Stock issued for services
   
8,400
     
20,001
 
Changes in operating assets and liabilities:
               
Prepaid expenses and other current assets
   
150,936
     
(174,444
)
Accounts payable and other accrued liabilities
   
(150,768
)
   
(569,033
)
                 
Net cash used in operating activities
   
(2,448,469
)
   
(5,266,697
)
                 
Cash Flows From Investing Activities:
               
Purchase of oil and gas concessions
   
(68,523
)
   
(580,569
)
Proceeds from sale of partial interest in Kenya concession
   
239,515
     
4,731,608
 
Proceeds from sale of restricted certificate of deposit
   
-
     
2,186,182
 
Purchase of furniture and equipment
   
(2,621
)
   
-
 
                 
Net cash provided by investing activities
   
168,371
     
6,337,221
 
                 
Cash Flows From Financing Activities:
               
Debt origination costs
   
-
     
(86,400
)
Proceeds from sale of convertible debt – related party
250,000
-
Proceeds from sale of convertible debt
   
685,637
     
561,500
 
                 
Net cash provided by financing activities
   
935,637
     
475,100
 
                 
Net (decrease) increase in cash and cash equivalents
   
(1,344,461
)
   
1,545,624
 
Cash and cash equivalents, beginning of period
   
2,182,406
     
1,184,204
 
Cash and cash equivalents, end of period
 
$
837,945
   
$
2,729,828
 
Non-cash investing and financing activities:
               
Unrealized (loss)gain on investment in Exile Resources
 
$
(285,098
)
 
$
196,255
 
Non-cash debt origination costs
 
$
-
   
$
(16,667
)
Discount from derivative
 
$
724,860
   
$
-
 
Conversion of note payable to common stock – related party
$
250,000
$
-
Conversion of note payable to common stock
 
$
1,616,966
   
$
-
 
Derivative liabilities extinguished on conversion – related party
$
432,646
$
-
Derivative liabilities extinguished on conversion
 
$
2,190,172
   
$
-
 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
 
ERHC ENERGY INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION AND BUSINESS ORGANIZATION

The consolidated financial statements included herein, which have not been audited pursuant to the rules and regulations of the Securities and Exchange Commission, reflect all adjustments which, in the opinion of management, are necessary to present a fair statement of the results for the interim periods on a basis consistent with the annual audited financial statements.  All such adjustments are of a normal recurring nature.  The results of operations for the interim periods are not necessarily indicative of the results to be expected for an entire year.  Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been omitted pursuant to such rules and regulations, although ERHC Energy Inc. ("ERHC" or the "Company") believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the Company's audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2014.

Recent accounting pronouncements

There have been no recently issued accounting pronouncements that have had or are expected to have a material impact on the Company's consolidated financial statements.

NOTE 2 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company adopted new guidance as of October 1, 2008, related to the measurement of the fair value of certain of its financial assets required to be measured on a recurring basis. Under the new guidance, based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or, other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Interest income on cash and cash equivalents is recognized as earned on the accrual basis.

Investments in equity instruments are accounted for as available for sale securities and reported at fair value, determined based on the quoted prices in an active market for identical assets and classified as Level 1 under the Accounting Standards Codification (“ASC”) Topic 820.

During the nine months ended June 30, 2015, the Company's investment in the common stock and warrants of OER, a Canadian oil and gas company that trades on the Toronto Stock Exchange (TSX) decreased in value by $285,098. This decrease in value is included as a decrease in stockholders' equity in accumulated other comprehensive income.

During the nine months ended June 30, 2015, the Company issued a number of convertible notes payable, and identified derivatives related to these notes.  ERHC classifies its derivative liabilities as Level 3 and values them using the methods discussed in Note 5.  While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The primary assumptions that would significantly affect the fair values using the methods discussed in Note 5 are that of volatility and market price of the underlying common stock of the Company.

As of June 30, 2015, the Company did not have any derivative instruments that were designated as hedges.

The derivative liability as of June 30, 2015, in the amount of $623,593 has a level 3 classification.
 
The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of June 30, 2015:

   
Derivative
Liability
 
     
Balance, September 30, 2014
 
$
1,021,942
 
Increase in derivative value due to issuances of convertible promissory notes
   
724,860
 
Decrease in derivative value due to convertible promissory notes converted to common stocks
   
(2,622,818
)
Day 1 loss on derivative liabilities
   
1,349,261
 
Change in fair market value of derivative liabilities on convertible notes due to the mark to market adjustment
   
156,246
 
Change in fair market value of derivative liabilities on tainted warrants due to the mark to market adjustment
   
(5,898
)
         
Balance, June 30, 2015
 
$
623,593
 

NOTE 3 – OIL AND GAS CONCESSIONS

The following is an analysis of the cost of oil and gas concessions at June 30, 2015 and September 30, 2014:

   
June 30, 2015
   
September 30, 2014
 
         
DRSTP concession
 
$
3,113,795
   
$
3,113,795
 
Chad concession
   
2,829,870
     
2,800,600
 
Pending concessions in other African countries
   
131,093
     
91,840
 
                 
   
$
6,074,758
   
$
6,006,235
 

In October, 2013, the Company entered into a farm-out agreement with CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U., an international oil and gas company ("CEPSA"). Under the terms of this agreement, the Company assigned and transferred 55% of its participating interest in Kenya Block 11A to CEPSA. In connection with this farm-out, the Company recognized a gain of $239,515 of reimbursement of exploration costs incurred during the nine months ended June 30, 2015.

In exchange for the transferred rights, CEPSA will carry the Company's proportionate share of obligations and financial costs under the terms and conditions outlined in the farm-out agreement. The agreement was approved in January 2014 by the Kenyan Government and from February 2014, CEPSA took over from ERHC as operator under the production sharing contract ("PSC") for Kenya Block 11A.
 
NOTE 4 – CONVERTIBLE DEBT

The Company had the following convertible debt outstanding at June 30, 2015:

Lender
Date of
Agreement
 
Term (Months)
   
Annual
Interest Rate
   
Face Value
   
Accrued
Interest
   
Discount (c)
   
Net Convertible
 Note Payable
   
Note
 Derivative
 Liability
 
Redwood Fund III
5/15/2014
   
6
     
12.00
%
 
$
40,000
   
$
5,917
   
$
15,867
   
$
30,050
   
$
110,132
 
JSJ Investments #2
9/8/2014
   
6
     
12.00
%
   
7,512
     
13,414
     
-
     
20,926
     
36,594
 
Tonaquint, Inc #2
10/7/2014
   
12
     
12.00
%
   
43,177
     
3,914
     
14,694
     
32,397
     
135,122
 
Tonaquint, Inc #3
10/7/2014
   
12
     
12.00
%
   
55,000
     
3,914
     
45,142
     
13,772
     
79,567
 
JMJ Financial #3
10/22/2014
   
24
     
5.83
%
   
8,900
     
6,195
     
12,120
     
2,975
     
23,495
 
LG Capital #2
10/23/2014
   
12
     
8.00
%
   
26,033
     
1,036
     
18,209
     
8,860
     
78,948
 
Cardinal Capital Group
11/6/2014
   
24
     
12.00
%
   
43,998
     
6,192
     
44,500
     
5,690
     
81,069
 
KBM Worldwide #7
1/13/2015
   
9
     
8.00
%
   
54,000
     
1,215
     
-
     
55,215
     
-
 
Rock Capital
2/6/2015
   
12
     
10.00
%
   
34,500
     
501
     
-
     
35,001
     
-
 
Union Capital #3
2/17/2015
   
12
     
8.00
%
   
34,500
     
318
     
-
     
34,818
     
-
 
Adar Bay #2
2/19/2015
   
12
     
8.00
%
   
42,000
     
368
     
-
     
42,368
     
-
 
LG Capital #3
3/10/2015
   
12
     
8.00
%
   
52,500
     
242
     
49,487
     
3,255
     
78,666
 
                                                           
                     
$
441,120
   
$
43,226
   
$
200,019
   
$
285,327
   
$
623,593
 

During the nine months ended June 30, 2015, the Company issued an aggregate of 1,876,093,379 shares of common stock for conversion of convertible debts of $1,616,966 and decrease in derivative value due to conversion of $2,190,172.
 
During the nine months ended June 30, 2015, the Company issued of 92,825,369 shares of common stock to its related party for conversion of convertible debts of $250,000 and decrease in derivative value due to conversion of $432,646.
 
The Company issued convertible notes payable that provide for the issuance of convertible notes with variable conversion provisions. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative liabilities once the note becomes convertible on the 180 days after the effective date.

The following table summarizes conversion terms of the notes outstanding at June 30, 2015:
 
Lender
 
Date of Agreement
 
Term Of Conversion
 
Eligible for
Conversion
             
Redwood Fund III
 
May 15, 2014
 
Conversion Price shall be 55% of the lowest traded price, determined on the then current trading market for the Company’s common stock, for 20 trading days prior to conversion.
 
180 after the effective dates
JMJ Financial
 
October 27, 2014
 
Conversion Price shall be lesser of $0.06 or 60% of lowest trade price in the 25 trading days previous to conversion.
 
180 after the effective dates
KBM Worldwide
 
January 13, 2015
 
Conversion Price shall be equal 61% multiplied by the average of the lowest three 3 trading prices for the Common Stock during the 10 trading day period ending on the latest complete trading day prior to the Conversion Date.
 
180 after the effective date
JSJ Investments
 
September 8, 2014
 
Conversion Price shall be 40% discount to the average of the three lowest trades on the previous 20 trading days to the date of Conversion, or 40% discount to the average of the three lowest trades on the previous 20 trading days that would have been obtained if the conversion were to be made on the date this note was executed.
 
180 after the effective date
Tonaquint, Inc
 
October 7, 2014
 
Conversion price shall be 65% (the “Conversion Factor”) of the lowest intra-day trade price of Borrower’s common stock (“Common Stock”) in the twenty-five (25) Trading Days immediately preceding the Conversion .
 
180 after the effective date
LG Capital #2
 
October 23, 2014
 
Conversion price shall be 50% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.
 
180 after the effective date
Cardinal Capital Group
 
November 6, 2014
 
Conversion price shall equal the lesser of (a) $0.05 or (b) 60% of the lowest trade occurring during the twenty five (25) consecutive Trading Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note.
 
180 after the effective date
Rock Capital
 
February 6, 2015
 
Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).
 
180 after the effective date
Union Capital
 
February 17, 2015
 
Conversion price shall equal be 55% of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).
 
180 after the effective dates
Adar Bay
 
February 19, 2015
 
Conversion price shall equal be 50% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.
 
180 after the effective date
LG Capital #3
 
March 10, 2015
 
Conversion price shall equal be 60% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company.
 
180 after the effective date
 
As of June 30, 2015, Company recorded the following deferred origination costs related to the convertible notes:

Lender
Date of Agreement
 
Transaction Costs
   
Legal and Other Debt Origination Costs
   
Initial Deferred
Origination Costs
   
Amortization
   
Net Deferred Debt Origination Costs
 
Tonaquint, Inc #2
10/7/2014
 
$
5,000
   
$
5,000
   
$
10,000
   
$
1,811
   
$
8,189
 
Tonaquint, Inc #3
10/7/2014
   
5,000
     
5,000
     
10,000
     
1,811
     
8,189
 
JMJ Financial #3
10/22/2014
   
5,000
     
-
     
5,000
     
-
     
5,000
 
LG Capital #2
10/23/2014
   
5,000
     
2,500
     
7,500
     
5,000
     
2,500
 
Cardinal Capital Group
11/6/2014
   
5,000
     
5,000
     
10,000
     
480
     
9,520
 
KBM Worldwide #7
1/13/2015
   
3,000
     
1,500
     
4,500
     
-
     
4,500
 
Rock Capital
2/6/2015
   
4,500
     
1,000
     
5,500
     
189
     
5,311
 
Union Capital #3
2/17/2015
   
4,500
     
1,500
     
6,000
     
-
     
6,000
 
Adar Bay #2
2/19/2015
   
2,000
     
1,500
     
3,500
     
-
     
3,500
 
LG Capital #3
3/10/2015
   
2,500
     
1,500
     
4,000
     
752
     
3,248
 
Various
Various
   
-
     
52,500
     
52,500
     
29,615
     
22,885
 
                                           
      
$
41,500
   
$
77,000
   
$
118,500
   
$
39,658
   
$
78,842
 
 
NOTE 5 – DERIVATIVE LIABILITIES

As described in Notes 4 and 6, the Company has identified embedded derivatives in notes payables and outstanding warrants.

The fair value of the embedded derivatives related to the convertible notes payable, comprising conversion feature with the reset provisions and the default provisions, at issuance and June 30, 2015 was determined using the multinomial lattice models that value the derivative liability based on a probability weighted discounted cash flow model.  These models are based on future projections of the various potential outcomes and utilize the following assumptions:

· The stock price would fluctuate with the Company projected volatility;

· The Derivative Convertible Notes (held by JMJ Financial, LG Capital, Adar Bay, Vista Capital Investment, Tonaquint Inc., KBM Worldwide, JSJ Investments, Iconic Holding LLC, Union Capital, Auctus Private, Redwood Fund III, Cardinal Capital Group, Inc. and Chrome Oil Service Limited ) convert at  40%  to  60%  of the market prices;

· An event of default would occur initially 0% of the time, increasing 1.00% per month until it reaches 10%;

· The projected volatility curve for each valuation period was based on the historical volatility of the Company, ranging between 137% and 200%;

· The Company would redeem the notes initially at 0% of the time, and increase monthly by 1.00% to a maximum of 5.00%;

· The holders of the notes would automatically convert the notes at the maximum of two times the conversion price if the Company is not in default, with the target conversion price dropping as maturity approaches; and

· The Holder would convert the note early after 0-90-180 days and at maturity if the registration was effective and the Company was not in default.

As discussed in Note 4, the Company issued convertible notes payable that provide for the issuance of convertible notes with variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Due to the fact that the number of shares of common stock issuable could exceed the Company’s authorized share limit, the equity environment is tainted and all additional convertible debentures and warrants are included in the value of the derivative. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative liabilities on the issuance date.

The fair value of the embedded derivatives related to the tainted outstanding warrants, comprising exercise feature with the full ratchet reset, at June 30, 2015 was determined using the lattice models that value the derivative liability based on a probability weighted discounted cash flow model.  These models are based on future projections of the various potential outcomes and utilize the following assumptions:
 
· The stock price would fluctuate with the Company projected volatility;

· The stock price would fluctuate with an annual volatility. The projected volatility curve for each valuation period was based on the historical volatility of the Company, ranging between 103% and 105%;

· The Holder would exercise the warrant as they become exercisable at target prices of two times the higher of the projected reset price or stock price;

· The Warrants with the $0.355; $0.28; and $0.275 exercise prices are fixed and not projected to adjust; and

· No warrants have expired in this period ending June 30, 2015.
 
The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date and to fair value as of each subsequent reporting date which at June 30, 2015 was an aggregate of $623,593.

During the nine months ended June 30, 2015, the Company recorded an aggregate $150,348 loss on change in fair value of derivative liabilities and a $1,349,261 loss upon recognition of these derivatives. See Note 4 for more information.
 
NOTE 6 - STOCKHOLDERS' EQUITY

During the nine months ended June 30, 2015, the Company recognized compensation expense of $8,400 related to service granted to the Board of Directors in fiscal year 2014.

During the nine months ended June 30, 2015, the Company issued an aggregate of 1,876,093,379 shares of common stock for conversion of convertible debts of $1,616,966 and decrease in derivative value due to conversion of $2,190,172.

During the nine months ended June 30, 2015, the Company issued of 92,825,369 shares of common stock to its related party for conversion of convertible debts of $250,000 and decrease in derivative value due to conversion of $432,646.
 
As of June 30, 2015, there are 4,150,000 options outstanding; none of which are exercisable.  These options have a weighted average remaining term of six days and an intrinsic value of zero. Unamortized compensation cost related to these options amounted to $0.

During the nine months ended June 30, 2015, there were no new warrants granted and none were exercised, cancelled or expired.  As of June 30, 2015, the Company has 7,277,729 outstanding and exercisable warrants with a weighted average exercise price and remaining term of $0.32 per share and 1.0 years, respectively.  As of June 30, 2015, these warrants have an intrinsic value of zero.

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Republic of Kenya Concession Fees and Other Financial Commitments

On June 28, 2012, ERHC entered into a production sharing contract ("PSC") with the Government of the Republic of Kenya for certain land based hydrocarbon exploration and production of Block 11A located in northwestern Kenya.

In October, 2013, the Company entered into a farm-out agreement with CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U., an international oil and gas company ("CEPSA"). Under the terms of this agreement, the Company assigned and transferred 55% of its participating interest in Kenya Block 11A to CEPSA. In exchange for the transferred rights, CEPSA will carry the Company's proportionate share of obligations and financial costs under the terms and conditions outlined in the farm-out agreement. The agreement was approved in January 2014 by the Kenyan Government and from February 2014, CEPSA took over from ERHC as operator under the production sharing contract ("PSC") for Kenya Block 11A.

Republic of Chad Concession Fees and Other Financial Commitments

On June 30, 2011, ERHC entered into a production sharing contract ("PSC") with Chad for certain onshore hydrocarbon exploration and development.  In September 2013, the Ministry of Energy and Petroleum of Chad approved ERHC's application to voluntarily relinquish two of the three Blocks covered by the PSC.

As of June 30, 2015, ERHC has paid or incurred:

a. $2,000,000 as the entire signature bonus
b. $320,600 in advisers' and ancillary costs related to the PSC
c. $480,000 as legal fees and costs for the drafting and negotiation of the PSC, as provided for in the PSC
d. $190,872 as costs of Environmental Impact Study, as provided for in the PSC
e. $448,000 on Aeromagnetic data acquisition survey, in fulfilment of work program obligations under the PSC
 
Insurance recovery for loss on Certificates of Deposit

During the years ended September 30, 2010 and 2009, the Company recognized losses on certificates of deposit of $1,058,579 and $4,234,317 to record the certificates at their estimated net realizable basis, based on the fact that certain restrictions were placed on the investment and a receiver was appointed to takeover the institution and the Company had filed an insurance claim for recovery of these losses. During the nine months ended June 30, 2015, the Company recovered $291,280 from insurance company related to its loss on certificate of deposit.
 
NOTE 8 – SUBSEQUENT EVENT

On June 9, 2015, JSJ Investments submitted a conversion notice to convert its remaining principal and interest under the Note into 47,604,256 shares of the Company’s common stocks. On July 14, 2015, the Company and JSJ investment entered that certain settlement agreement and release, with two separate issuances of 47,604,256 and 6,000,000 of the Company’s common stocks; a total of 53,604,256 shares of the Company’s common stock were issued on July 16, 2015.
 
On July 23, 2015, JSJ Investments converted its principle balance of $54,160 into 74,395,744 shares of the Company’s common stock.
 
Subsequent to June 30, 2015, the Company received $707,000 from insurance recovery related to its loss on certificates of deposit in 2009. Management has evaluated all subsequent events through August 14, 2015, which is the date the financial statements were available to be issued, and has concluded that there are no more significant events to be reported.
 
LEGAL PROCEEDINGS
JDZ BLOCKS 5 AND 6

Arbitration and Lawsuit

Lawsuit

The Company's rights in JDZ Blocks 5 and 6 are currently the subject of legal proceedings at the London Court of International Arbitration and the Federal High Court in Abuja, Nigeria. The Company instituted both proceedings in November 2008 against the JDA and the Governments of Nigeria and Săo Tomé and Príncipe.  The Company seeks legal clarification that its rights in the two Blocks remain intact.

The issue in contention is contractual. The Company was awarded a 15 percent working interest in each of the Blocks in a 2004/5 bid/licensing round conducted by the JDA following the Company's exercise of preferential rights in the Blocks as guaranteed by contract and treaty.  The JDA and the Government of STP contend that certain correspondence issued by a previous CEO/President of the Company in 2006 amount to a relinquishment of the Company's rights in Blocks 5 and 6 under the Company's contracts with STP which provide for the rights.  The Company contends that no such relinquishment has occurred and has sought recourse to arbitration accordingly. It also filed the suit to prevent any tampering with its said rights in JDZ Blocks 5 and 6 pending the outcome of arbitration.

Proceedings on the suit and the arbitration are currently suspended while the Company pursues amicable settlement with the Governments of Nigeria and Săo Tomé & Príncipe.

ROUTINE CLAIMS

From time to time, ERHC may be subject to routine litigation, claims, or disputes in the ordinary course of business.  ERHC intends to defend these matters vigorously.  The Company cannot predict with certainty, however, the outcome or effect of any of the arbitration or litigation specifically described above or any other pending litigation or claims.
 
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the Company's unaudited consolidated financial statements (including the notes thereto) and Item 1A of Part II; "Risk Factors," included elsewhere in this report and the Company's audited consolidated financial statements and the notes thereto, Item 7; and  "Management's Discussion and Analysis of Financial Condition and Plan of Operations" and Item 1A, "Risk Factors" included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2014.  The Company's historical results are not necessarily an indication of trends in operating results for any future period.   References to "ERHC" or the "Company" mean ERHC Energy Inc., a Colorado corporation, and, unless expressly stated or the context otherwise requires, its wholly owned subsidiary.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

We are including the following cautionary statement to make applicable and take advantage of the safe harbor provision of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by us, or on our behalf.  This Quarterly Report on Form 10-Q contains forward-looking statements.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, future events or performance and underlying assumptions and other statements which are other than statements of historical facts.  Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.  Our expectations, beliefs and projections are expressed in good faith and are believed by us to have a reasonable basis, including without limitations, management's examination of historical operating trends, data contained in our records and other data available from third parties, but there can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.  In addition to other factors and matters discussed elsewhere herein, the following are important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements: geopolitical instability where we operate; our ability to meet our capital needs; our ability to raise sufficient capital and/or enter into one or more strategic relationships with one or more industry partners to execute our business plan; our ability and success in finding, developing and acquiring oil and gas reserves; our ability to respond to changes in the oil exploration and production environment, competition, and the availability of personnel in the future to support our activities.

Overview

ERHC Energy Inc., a Colorado corporation, ("ERHC" or the "Company") was incorporated in 1986. The Company is in the business of exploration for oil and gas resources in Africa. The Company's business includes working interests in exploration acreage in the Republic of Kenya ("Kenya"), the Republic of Chad ("Chad"), the Joint Development Zone ("JDZ") between the Democratic Republic of Săo Tomé and Príncipe ("STP"), the Federal Republic of Nigeria ("FRN" or "Nigeria"), and the exclusive economic zone of Săo Tomé and Príncipe (the "Exclusive Economic Zone" or "EEZ").

ERHC's strategy in Kenya and Chad is to perform exploration work and further establish the prospectivity of assets acquired through Production Sharing Contracts (PSCs) with the governments of both countries.  ERHC found a farm-out partner for its interests in Kenya, and is currently seeking for a partner for its interests in Chad.  ERHC expects that such farm-in arrangements, if entered into, might lower the risk and cost of the exploration programs to ERHC.

The Company's strategy in the JDZ and EEZ is to farm out its working interests to well established oil and gas operators for valuable consideration including upfront cash payments and being carried for ERHC's share of the exploration costs.  This has already been done successfully on Blocks 2, 3 and 4 of the JDZ where ERHC has benefited from partnerships with Addax Petroleum and Sinopec Corporation, which have operated some of the license areas on behalf of ERHC.

Apart from its oil and gas exploration activities in Kenya, Chad, the JDZ and the EEZ, ERHC continues to pursue other oil and gas opportunities on the African continent. These opportunities also include the possible acquisition of significant equity stakes in other oil and gas exploration and production companies and the resulting indirect interest in the underlying exploration and production assets of such other companies.
 
REPUBLIC OF KENYA

ERHC Kenya Acreage

In June 2012, after months of negotiations between ERHC and the Government of Kenya, the Government awarded Block 11A for oil and gas exploration and development in Kenya to the Company. On June 28, 2012, the Company announced that it had signed a Production Sharing Contract (PSC) on Block 11A with the Government of Kenya.  A PSC is an agreement that governs the relationship between ERHC (and any future joint-venture partners) and the Government of Kenya in respect of exploration and production in the Block awarded to the Company.  The PSC details, among other things, the work commitments (including acquisition of data, drilling of wells, social projects, etc.), the time frame for completion of the work commitments, production sharing between the parties and the Government, and how the costs of exploration, development and production will be recovered.

 
By virtue of the PSC, the Company acquired a 90% interest in Block 11A, which encompasses 11,950.06 square kilometers or 2.95 million square acres.  The Government of Kenya has a 10% carried participating interest up to the declaration of commerciality and may thereafter acquire an additional 10% interest in the PSC in which case the total Government participation would rise to 20%.

Circle Oil Limited (www.circleoilandgas.com) ("Circle") acted as finder in ERHC's acquisition of the Block by facilitating ERHC's entry into Kenya, including the introduction of Dr. Peter Thuo, ERHC's Kenya-based geoscientist and technical adviser who provided liaison services in the pursuit of ERHC's application. Circle's involvement provided significant efficiencies, including substantial cost savings, in ERHC's application process.  By virtue of the terms of the business finder's agreement reached between Circle and ERHC, Circle is entitled to receive a 5% payment on the value of the acquisition accruing resulting to ERHC from the application.  Circle has opted to receive this fee in the form of a carried 5% of ERHC's total interest in Block 11A.

In October, 2013, ERHC entered into a farm-out agreement with CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U., an international oil and gas company ("CEPSA"). The farm-out agreement was approved by the Government of the Republic of Kenya during the quarter ended March 31, 2014. Under terms of the agreement, ERHC transferred a majority of its interest in Kenya Block 11A as well as operatorship to CEPSA. The farm-out agreement includes a carry and other considerations.

Kenya Operations Update

As of June 30, 2015 preparation continues to intensify for spudding the first well at the Tarach-1 prospect in March 2016. The Tarach-1 prospect is situated in the central part of the Tarach basin. It is a three-way structural closure trapping against a North - South trending normal fault. The mean estimate of oil prospective un-risked resources for the prospect is 65 million barrels. Mean un-risked prospective resources of all prospects and leads in Block 11A totals 645 million barrels. ERHC holds a 35 percent interest in Block 11A. It is important to remind investors and other stakeholders that no wells have previously been drilled in our Blocks in Kenya and Chad. While the geological and geophysical work indicates prospectively, there are no guarantees before drilling that there will be a discovery of hydrocarbons. If there is a discovery, there is no guarantee that it will be commercial or in such quantities as to justify a development project.

The Company continues to work with Deloitte Corporate Finance LLC (DCF) on a further farm-down of our interest in the Block to help raise funds for the company.
 
Key Provisions of the ERHC's PSC on Block 11A

KENYA BLOCK 11A
   
LICENSE:
PSC with the Government of Kenya (effective September 2012)
   
PARTIES:
ERHC (35%); CEPSA (55%); Government of Kenya (10%)1
 
WORK PROGRAM:

Phase 1 (2 years – September 2012 to September 2014)

Minimum Work
 
Minimum Expenditure
 
Status
Acquire and interpret 1,000 square kilometers of gravity and magnetic data
 
$
250,000
 
Completed: 12,714 square kilometers of FTG data acquired by January 2014 at a total cost of $2,070,780.
Acquire and interpret 1,000 kilometers of 2D seismic data
 
$
10,000,000
 
Completed: 1,086.6 line kilometers of 2D seismic data acquired by August 2014 at an estimated total cost of $28,300,000

Phase 2 (2 years – September 2014 to September 2016)

Minimum Work
 
Minimum Expenditure
 
Status
Acquire 750 square kilometers of 3D seismic data
 
$
30,000,000
 
Decision taken not to acquire 3D seismic but to proceed to drilling based on FTG and 2D seismic
OR
 
OR
 
 
 
Drill one (1) well to a minimum depth of 3,000m
 
$
30,000,000
 
Preparation underway for drilling exploration well in  Q1 2016

Phase 3 (2 years – September 2016 to September 2018)

Minimum Work
 
Minimum Expenditure
 
Status
Drill one (1) well to a minimum depth of 3,000m
 
$
30,000,000
 
Not yet arisen
 
OTHER FINANCIAL OBLIGATIONS:

Ministry
Training Fund
$175,000 per annum during the exploration period
   
 
$200,000 per annum (minimum) from adoption of first development plan
   
Social Projects:
$50,000 per annum (minimum)
   
Surface Rentals:
$5/km2 per annum (exploration phase 1); $10/km2 per annum (exploration phase 2); $15/km2 per annum (exploration phase 3)
   
 
$100/km2 per annum (development and production period)

Cost Recovery:
   
Cost Oil
Up to 60% of Cost Oil each fiscal year

Profit Oil

Incremental Production Tranches
Government Share
Contractor Share
0-30,000 barrels per day
50%
50%
Next 25,000 barrels per day
60%
40%
Next 25,000 barrels per day
65%
35%
Next 20,000 barrels per day
70%
30%
Above 100,000 barrels per day
78%
22%
 

1 CEPSA is carrying ERHC's proportionate share of exploration costs except for the first exploration well where ERHC is expected to contribute 25% of its proportionate (35%) share of costs..

As of June 30, 2015, the exploration team is making steady progress toward drilling during the current phase of exploration. 2D seismic mapping has been completed. To date, two basins, Tarach and Anam, in the eastern and western parts of the block respectively, have been identified. 12 drillable prospects have been mapped in the Tarach Basin alone. Volumetric calculations and risk analyses have been completed leading to a total mean resource estimate of 640 MMBO. The technical team agreed on drilling Tarach-1 as the first exploratory well with a mean resource estimate of 65.78 MMBO during the first quarter  of 2016 if all conditions precedent are met.   Seismic interpretation of the Anam Basin will start later in 2015.

The Company continues to work with Deloitte Corporate Finance LLC (DCF) on a further farm-down of our interest in the Block to help raise funds for the company.
 
REPUBLIC OF CHAD

ERHC's Chad Acreage

On July 6, 2011, the Company announced that it had signed a Production Sharing Contract (PSC) on the three oil blocks with the Government of Chad.  A PSC is an agreement that governs the relationship between ERHC (and any future joint-venture partners) and the Government of Chad in respect of exploration and production in the Blocks awarded to the Company.  The initial period of exploration commenced on July 12, 2012 with the publication, in Chadian Government's Gazette Principal, of the Exclusive Exploration Authorization, granted to ERHC by the Government of Chad.

During the quarter ended June 30, 2015, the Company received the arrêté (decree) of the President of Chad giving presidential seal of approval to the Company's request to obtain oil exploration Block BDS 2008 and its voluntary relinquishment of the Manga and Chari-Ouest III Blocks.
 
 
Chad Operations Update

As of June 30, 2015, ERHC has completed the acquisition, processing and interpretation of 4,720 KM high resolution gravity & aeromagnetic lines in focus areas 1 & 2. Based on the result of an aero-magnetic and gravity survey that ERHC completed over the Block, total Petroleum Initially in Place (PIIP) for one of ERHC's two focus areas has been estimated at 278 million barrels (with a high case of 876 million barrels). ERHC's exploration team is developing a Request for Proposals for a 2-D seismic acquisition program.
 
Given the current environment and continued constraints on funding for oil exploration activities, one option we are exploring is the possibility of a right-to-earn partnership in exchange for seismic services. ERHC holds a 100 percent interest in BDS 2008.

Focus Areas
ERHC's exploration focus is on Block BDS 2008 which measures 41,800 square kilometers or 10,329,000 acres.  Within this block, two focus areas have been identified:

     - North of Esso’s Tega and Maku discoveries in the Doseo basin; and
     - East of and on trend with OPIC’s Benoy-1 margin discovery in the Doba basin.


Key Provisions of ERHC's Production Sharing Contract (PSC) in Chad

CHAD BLOCK BDS 2008

LICENSE:
PSC with the Government of Chad signed June 20112
   
PARTIES:
ERHC (100%)

WORK PROGRAM:

Phase 1 (5 years – June 2012 to June 2017)3

Minimum Work
Minimum Expenditure
Status
Unspecified: annual work program to be proposed yearly by contractor
$15,000,000 in total for the exploration phase
EIA completed;
 
   
Aero gravity and magnetic survey completed;
   
·
4,720 line kilometers of high precision gravity and magnetic data acquired  by November 2014; Processing and interpretation of the data were completed in January 2015.
   
·
Three leads identified;
     
   
Seismic in preparation;
   
·
2D seismic on focus areas planned for 2015-16
 

2 PSC originally covered thee Blocks; ERHC voluntarily relinquished two Blocks in 2013, retaining only BDS 2008.  Relinquishment and retention approved by Presidential Decree as provided for in PSC.
3 PSC provides for exploration period to run from date of grant of Exclusive Exploration Authorization ("EEA").  EEA granted to ERHC in June 2012.
 
Phase 2 (3 years)

Minimum Work
 
Minimum Expenditure
 
Status
Unspecified: annual work program to be proposed yearly by contractor
 
$
1,000,000
 
Not yet arisen; ERHC proposes an exploration well in this period if Phase 1 G&G studies justify

OTHER FINANCIAL OBLIGATIONS:

Ministry
Training Fund
$250,000 per annum during the exploration period
   
 
$500,000 per annum during the exploitation period
   
Social Projects:
None specified in the PSC
   
Surface Rentals
$1/km2 per annum (Exploration Phase 1); $5/ km2 per annum (Exploration Phase 2); $10// km2 per annum (Extension)
   
 
$100/ km2 per annum (Exploitation Phase 1); $150/ km2 per annum (Exploitation Phase 1)

COST RECOVERY AND PRODUCTION SHARING:

Royalty
14.25% for crude oil
   
 
5% for natural gas
   
Cost Oil
Up to 70% of net production after deduction of royalty

Profit Oil

R-Factor, as defined by the PSC4
Less than or equal
to 2.25
Between 2.25 and
3
Greater than 3
Contractor's share of profit oil
60%
50%
40%
State's share of profit oil
40%
50%
60%
 
4 R-factor is based on a formula defined in the PSC.


As the Company did with the JDZ and Kenya Block 11A, ERHC continues to explore a farm-out to spread risk. The Chad acreage is also within the scope of Deloitte Corporation Finance LLC (DCF)'s engagement and ERHC continues to work with DCF to find suitable farm-out or joint venture partners.
 
NIGERIA – SAO TOME AND PRINCIPE JOINT DEVELOPMENT ZONE ("JDZ")

Background of the JDZ

In the spring of 2001, Sao Tome & Principe and Nigeria signed a treaty establishing a JDZ for the joint development of petroleum and other resources in the overlapping area of their respective maritime boundaries.  The treaty also established an administrative body, the Joint Development Authority ("JDA"), to administer the treaty and all activities in the JDZ. Revenues derived from the JDZ will be shared 60:40 between the governments of Nigeria and Săo Tomé & Príncipe, respectively. The JDZ lies approximately 180 kilometers south of Nigeria, in the Gulf of Guinea, one of the most prolific hydrocarbon regions of the world.

ERHC's Rights in the JDZ

In April 2003, the Company and STP entered into an Option Agreement (the "2003 Option Agreement") in which the Company relinquished significant prior legal rights and financial interests in the Joint Development Zone ("JDZ") in exchange for preferential exploration rights in the JDZ.  Following the exercise of ERHC's rights as set forth in the 2003 Option Agreement, the JDA confirmed the award in 2004 of participating interests ("Original Participating Interest") in each of JDZ Blocks 2, 3, 4, 5, 6 and 9 of the JDZ during the 2004/5 licensing round conducted by the JDA.  ERHC also jointly bid with internationally recognized technical partners for additional participating interests in the JDZ during the 2004/5 licensing round.  As a result of the joint bid, ERHC won additional participating interests ("Joint Bid Participating Interest") in Blocks 2, 3 and 4.  The following is a tabulation of ERHC's participating interests in the JDZ.

JDZ Block
   
ERHC Original
Participating Interest
   
ERHC Joint Bid
Participating Interest
   
Participating
Interest(s) Assigned
   
Current ERHC
Retained Participating
Interest
 
                           
2
   
30.00%
   
35.00%
   
43.00%
   
22.00%
 
3
   
20.00%
   
5.00%
   
15.00%
   
10.00%
 
4
   
25.00%
   
35.00%
   
40.50%
   
19.50%
 
5
   
15.00%
   
-
   
-
   
15.00% (in arbitration)
 
6
   
15.00%
   
-
   
-
   
15.00% (in arbitration)
 
9
   
20.00%
   
-
   
-
   
20.00%
 

ERHC's Participating Agreements in the JDZ

The following are the particulars of the Participating Agreements by which ERHC assigned some of its participating interests in JDZ Blocks 2, 3 and 4 to technical partners so that the technical partners would operate the Blocks and carry ERHC's proportionate share of costs in the Blocks until production, if any, commenced from the Blocks:

Date of Participation
Agreement
Party(ies)
to the Participation Agreement
 
Participating
Interest(s)
Assigned
   
Participating
Interest
Assigned
Price
 
           
JDZ Block 2 - Participation Agreement - ERHC Retained Interest of 22.00%
     
           
March 2, 2006
Sinopec International Petroleum Exploration Production Co. Nigeria Ltd - a subsidiary of Sinopec International Petroleum and Production Corporation
   
28.67
%
 
$
13,600,000
 
                   
Addax Energy Nigeria Limited - an Addax Petroleum Corporation subsidiary
   
14.33
%
 
$
6,800,000
 
                   
JDZ Block 3 - Participation Agreement - ERHC Retained Interest of 10.00%
               
                   
February 15, 2006
Addax Petroleum Resources Nigeria Limited - a subsidiary of Addax Petroleum Corporation
   
15.00
%
 
$
7,500,000
 
                   
JDZ Block 4 - Participation Agreement - ERHC Retained Interest of 19.50%
               
                   
November 15, 2005
Addax Petroleum Nigeria (Offshore 2) Limited - a subsidiary of Addax Petroleum Corporation
   
40.50
%
 
$
18,000,000
 
 

Under the terms of the Participation Agreements Sinopec and Addax agreed to pay all of ERHC's future costs for petroleum operations ("the carried costs") in respect of ERHC's retained interests in the blocks.  Additionally, Sinopec and Addax are entitled to 100% of ERHC's allocation of cost oil plus up to 50% of ERHC's allocation of profit oil from the retained interests on individual blocks until Sinopec and Addax Sub recover 100% of ERHC's carried costs.

On or about October 2, 2009, Sinopec International Petroleum Exploration and Production Corporation acquired all of the outstanding shares of Addax Petroleum Corporation.

ERHC's JDZ Acreage

ERHC has working interests in six of the nine Blocks in the JDZ, as follows:

JDZ Block 2:  22.0%

JDZ Block 3:  10.0%

JDZ Block 4:  19.5%

JDZ Block 5:  15.0% (in arbitration)

JDZ Block 6:  15.0% (in arbitration)

JDZ Block 9:  20.0%

The working interest percentages represent ERHC's share of all the hydrocarbon production from the blocks and obligates ERHC to pay a corresponding percentage of the costs of drilling, production and operating the blocks.  Through Exploration Phase 1 in blocks 2, 3 and 4, these costs have been carried by the operators.  The operators can only recover their costs by carrying ERHC until production whereupon the operators will recover their costs from production revenues.

In 2009, Sinopec and Addax, ERHC's technical partners and operators in Blocks 2, 3 and 4 undertook an exploratory drilling campaign across the three blocks that was completed in January 2010.

Biogenic gas was discovered in each block and discussions continue between the Joint Development Authority and the parties, including ERHC, that hold interests in JDZ Blocks 2, 3 and 4, regarding drilling results. The meetings with the JDA are aimed at reaching a definitive agreement on how to proceed with the next stage of exploration in the Blocks following the expiration of Exploration Phase I in March 2012.

JDZ Operations Update

The JDZ partnership is currently assessing the data for possible new exploration play concepts in this area.

SAO TOME AND PRINCIPE EXCLUSIVE ECONOMIC ZONE ("EEZ")

Overview of ERHC's EEZ Blocks

The Săo Tomé and Príncipe EEZ is delineated over an expanse of waters offshore Sao Tome and Principe that covers approximately 160,000 square kilometers. In terms of hydrocarbon exploration and exploitation, the EEZ is a frontier region that sits south of the Niger Delta and west of the Gabon salt basin, retaining similarities with each of those prolific hydrocarbon regions.  The regional seismic database comprises approximately 12,000 kilometers of seismic data. Interpretation of that seismic data shows numerous structures in the EEZ that have similar characteristics to known hydrocarbon accumulations in the area.

ERHC's Rights in the EEZ

Under a 2001 agreement with the Government of Sao Tome and Principe ("STP"), ERHC was vested with the rights to participate in exploration and production activities in the EEZ.  These rights included (a) the right to receive up to 100% of two blocks of ERHC's choice and (b) the option to acquire up to a 15% paid working interest in each of two additional blocks of ERHC's choice in the EEZ.  In 2010, ERHC exercised its rights to receive up to 100% of two blocks of ERHC's choice in the EEZ and was duly awarded Blocks 4 and 11 of the EEZ by the Government of STP.

EEZ Block 4 is 5,808 square kilometers, situated directly east of the island of Príncipe.

EEZ Block 11 totals 8,941 square kilometers, situated directly east of the island of Săo Tomé and abuts the territorial waters of Gabon. The southern area of the EEZ, where EEZ Block 11 is situated, contains parts of the Ascension and Fang Fracture Zones.

ERHC will decide whether to take up the option to acquire up to a 15% paid working interest in each of two additional blocks of the EEZ when called upon to exercise the option by the Government of STP in accordance with the agreements which provide for the rights and option.
 
PSC for the EEZ

In July 2014, ERHC and the National Petroleum Agency of São Tomé and Príncipe (ANP-STP) announced the conclusion of final terms for the Production Sharing Contract for EEZ Block 11.

A PSC is an agreement that governs the relationship between the Company (and its joint venture partners) and the Government of Săo Tomé and Príncipe in respect of exploration and production in any Block awarded to the Company.  The PSC spells out, among other things, the work commitments (including acquisition of data, drilling of wells, social projects, etc.), the time frames for accomplishing the work commitments, how production will be shared between the parties and the government, and how the costs of exploration, development and production will be recovered.

EEZ Operations Update

Negotiations continue regarding ERHC's efforts to farm-out its stake in EEZ Block 11. A previously disclosed Memorandum of Understanding with an International Operating Company (IOC) continues in existence until further notice.

SAO TOME & PRINCIPE EEZ BLOCK 11

LICENSE
PSC with the Government of STP signed July 2014
   
PARTIES
ERHC (85%); Government of STP (15%)5

WORK PROGRAM

Phase 1 (4 years)

Minimum Work
 
Minimum Expenditure
 
Status
Purchase and reprocess all existing 2D seismic on the Block
 
$2,500,000 for the entire exploration phase
 
Not yet commenced; budgeting for first year being discussed with ANP-STP
Geological and Geophysical studies (including AVO, geochemical studies and sequence stratigraphy)
       
EIA
       
Magnetic and gravity surveys
       
Acquire, process and interpret 2,500km 2D seismic
       
Handover all data and an evaluation report to ANP-STP at least 3 months to end of phase
       
 
5 Contractor to carry the Government's 15% to production and be entitled to 100% of Cost Oil to recover the carry

Phase 2 (2 years)

Minimum Work
 
Minimum Expenditure
 
Status
EIA
 
$
40,000,000
 
Not yet arisen
Acquire, process and interpret 1,100 square kilometers 3D seismic
          
Drill one exploration well
          
Evaluate discoveries and remaining prospectivity
          

Phase 3 (2 years)

Minimum Work
 
Minimum Expenditure
 
Status
EIA
 
$
40,000,000
 
Not yet arisen
Drill one exploration well
          
Evaluate discoveries
          
 

OTHER FINANCIAL OBLIGATIONS

Signature Bonus
None payable
   
Training
Between $100,000 (min) and $250,000 (max) per calendar year during the exploration period
   
 
$550,000 per annum during the production period
   
Social Projects
Exploration Phase 1: $300,000 per annum (minimum)
   
 
Exploration Phase 2: $500,000 per annum (minimum)
   
 
Exploration Phase 3: $400,000 per annum (minimum)
   
 
On production, $2million worth of projects if cumulative production is 20mmboe, $4million if 40mmboe and $6m if 60mmboe

COST RECOVERY AND PRODUCTION SHARING

Royalty
2% (first charge on production)
   
Cost Oil
Up to 80% of available crude after deduction of royalty oil in any accounting period

Profit Oil

Contractor's Rate of Return6 for
Contract Area (% per annum)
Government Share
Contractor Share
<16%
0%
100%
>=16%<19%
10%
90%
>=19%<23%
20%
80%
>=23%<26%
40%
60%
>=26%
50%
50%
 
As was the case in Kenya and earlier in the Joint Development Zone, management's intention is to bring a technically and financially capable operating partner onboard. The Company's discussions continue with several international oil companies about partnerships in EEZ Block 11. Some of those discussions are on the possibility of a 'right-to-earn' partnership where the operator commits to carrying only one aspect of the work program in return for a pre-determined interest in the PSC if the results of that aspect convince the operator to commit to the rest of the work program.

ERHC is currently working with the National Petroleum Agency of São Tomé and Príncipe (ANP-STP) to complete the budget for the first year of its exploration work program. A preliminary examination of available 2D seismic data indicates the possibility of commercially sizeable Cretaceous deep water tubidite fan existing in Block 11. While further investigation is in process, ERHC's exploration team believes that the Block has the potential for holding enormous hydrocarbon resources.
 

6 PSC provides for rate of return to be determined at the end of each quarter on the basis of accumulated compounded net cash flow for the contract area using a prescribed procedure.
 
INVESTMENT IN OANDO ENERGY RESOURCES (FORMERLY EXILE RESOURCES)

During the year ended September 30, 2011, ERHC invested $1,350,000 in Exile Resources Inc, a company listed on the Toronto Stock Exchange (Ventures Exchange) stock in open market purchases.  ERHC's intention was to gain an indirect interest in Exile's underlying oil and gas exploration and production assets as well as the ability to participate in Exile's decision making in respect of those assets.  ERHC was particularly interested in Exile's carried interest in the proven Akepo field in the Niger Delta.

In July 2011, Oando Petroleum and Exploration Company ("Oando Petroleum") commenced a reverse takeover ("RTO") of Exile Resources.  In July 2012, Exile announced the completion of the RTO by Oando Petroleum and the change of name of the resultant company to Oando Energy Resources Inc, ("Oando Energy"). It also announced the listing of the company's shares under the symbol "OER" on the Toronto Stock Exchange (TSX) and commencement of trading in the shares on the TSX from July 30, 2012.

As a result of the RTO, ERHC now holds 418,889 shares in the common stock of Oando Energy.  ERHC also holds warrants for 418,889 common shares exercisable within 24 months of the closing of the RTO at Cdn$2.00 per share.

CURRENT PLANS FOR OPERATIONS

ERHC's principal assets are its interests in rights for exploration for hydrocarbons in Kenya, Chad, the JDZ and the EEZ. ERHC has no current sources of income from its operations. The Company plans to develop its business by the acquisition of other assets which may include revenue-producing assets in diverse geographical areas and the forging of strategic, new business partnerships and alliances.  ERHC cannot currently predict the outcome of negotiations for acquisitions, or, if successful, their impact on the Company's operations.

PLANS FOR FUNDING OF POTENTIAL ACQUISITIONS

ERHC's future plans will depend on the Company's ability to attract new funding. The Company is implementing a series of steps to fund the geophysical work, including magnetic/gravity and seismic surveys, prior to securing potential farm-out on Chad acreage. The fund raising might include:

Farm-outs of part of the Company's assets in Kenya, Chad and the Săo Tomé and Príncipe Exclusive Economic Zone
Issue shares of common stock through a registered direct offering
Convertible loans and other debt instruments
Other available financing options

During the quarter ended December 31, 2014, the Company retained the services of Deloitte Corporate Finance LLC (DCF) to advise on the Company's oil assets in the Republics of Chad and Kenya.

About Deloitte Corporate Finance LLC

Deloitte Corporate Finance LLC (DCF) provides strategic advisory services and M&A advice that help corporate, entrepreneurial and private equity clients create and act upon opportunities for liquidity, growth and long-term advantage. With an in-depth understanding of the marketplace and access to a global network of investment bankers, DCF help clients confidently pursue strategic transactions in both domestic and global markets. DCF, together with the Corporate Finance Advisory practices within the Deloitte Touche Tohmatsu Limited network of member firms, include in excess of 1,900 professionals, who work collaboratively across 150 international locations. With significant experience providing investment banking services across key industries, DCF are able to offer clients solutions that help them to achieve their strategic objectives.
 
CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The process of preparing financial statements requires that the Company make estimates and assumptions that affect the reported amounts of liabilities and stockholders' equity at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Such estimates primarily relate to realization of oil and gas concession assets and the valuation allowance related to deferred tax assets as of the date of the financial statements; accordingly, actual results may differ from estimated amounts. ERHC's estimates and assumptions are based on current facts, historical experience and various other factors we believe to be reasonable under the circumstances. The most significant estimates with regard to the financial statements included with this report relate to realization of oil and gas concession assets and the valuation allowance related to deferred tax assets.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.

RECENT ACCOUNTING PRONOUNCEMENTS

In preparing its financial statements and filings, the company considers recent guidance issued related to accounting principles generally accepted in the United States. The Company believes that there has been no new guidance since its most recent annual report on Form 10-K that have a significant impact on its financial statements.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2015 Compared with the Three Months Ended June 30, 2014

General and administrative expenses decreased from $719,943 in the three months ended June 30, 2014 to $685,010 in the three months ended June 30, 2015.  The decrease was primarily due to decrease in general and administrative expenses as part of our cost savings plan.

During the three months ended June 30, 2015, the Company had a net loss of $1,518,451 compared a net loss of $1,127,165 for the three months ended June 30, 2014.  The increase in net loss was primarily due to interest expenses of $435,938 and change in fair value derivative of $216,097 related to our convertible debts during the three months ended June 30, 2015 compared with interest expense of $24,708 and change in fair value derivative of $16,496 during the same period in 2014.

Nine Months Ended June 30, 2015 Compared with the Nine Months Ended June 30, 2014

General and administrative expenses decreased from $2,634,430 in the nine months ended June 30, 2014 to $2,034,178 in the nine months ended June 30, 2015.  The decrease was primarily due to decrease in general and administrative expenses as part of our cost savings plan.

During the nine months ended June 30, 2015, the Company had a net loss of $5,165,213 compared a net loss of $572,960 for the nine months ended June 30, 2014.  The increase in net loss was primarily due to interest expenses of $1,585,099 and loss on embedded derivative of $1,349,261 related to our convertible debts during the nine months ended June 30, 2015 compared with interest expense of $24,708 and loss on embedded derivative of $111,156 during the same period in 2014. Also, income from gain on sale of partial interest in Kenya concession decreased from $2,724,793 in the nine months ended June 30, 2014 to $239,515 for the nine months ended June 30, 2015.
 
During the nine months ended June 30, 2015, the Company received $291,280 from insurance recovery related to its loss on certificates of deposit in 2009.
 
LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2015, the Company had $837,945 in cash and cash equivalents, and a working capital of $511,398.  The Company is currently raising more funds through convertible debentures.

OFF-BALANCE SHEET ARRANGEMENTS

At June 30, 2015, the Company had no off-balance sheet arrangements.
 
Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company's current focus is to exploit its primary assets, which are rights to working interests oil and gas exploration blocks in Kenya, Chad, the JDZ and EEZ under agreements with the  governments of Kenya, Chad, the JDA and the government of STP respectively.  The Company intends to continue to form relationships with other oil and gas companies with operational, technical and financial capabilities, to partner with the Company in leveraging its interests.  The Company currently has no other operations.

As of June 30, 2015, all the Company's exploration and production acreages were located outside the United States.  The Company's primary assets are agreements with Kenya, Chad, STP and the JDA which provide ERHC with rights to participate in exploration and production activities in Kenya, Chad, the EEZ and the JDZ in Africa.  This geographic area of interest is controlled by foreign governments that have historically experienced volatility of which is out of management's control. The Company's operations and its ability to exploit its interests in the agreements in this area may be impacted by this circumstance.

The future success of the Company's international operations may also be adversely affected by risks associated with international activities that include financial, economic and labor conditions, political instability, risk of war, expropriation, renegotiation or modification of existing contracts, tax laws (including host-country import-export, excise and income taxes and United States taxes on foreign subsidiaries) and changes in the value of the U.S. dollar relative to the local currencies in which future oil and gas producing activities may be denominated.  Furthermore, changes in exchange rates may adversely affect the Company's future results of operations and financial condition.

Market risks relating to the Company's operations result primarily from changes in interest rates as well as credit risk concentrations.  The Company's interest expense is generally not sensitive to changes in the general level of interest rates in the United States, particularly because a substantial majority of its indebtedness is at fixed rates.

The Company holds no derivative financial or commodity instruments.

Item 4. Controls and Procedures

The Company's  Chief Executive Officer and Principal Accounting Officer participated in an evaluation by management regarding the effectiveness of the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2015.  Based on their participation in that evaluation, the Company's Chief Executive Officer and Principal Accounting Officer concluded that as of June 30, 2015, our disclosure controls and procedures are effective and ensure that the information required to be disclosed in the reports that ERHC files or submits under the Exchange Act, is accumulated and communicated to our management; including our principal executive and principal financial officers, to allow timely decisions regarding required disclosure under the Exchange Act. ERHC officers also concluded on June 30, 2015 that our disclosure controls and procedures are effective in ensuring that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC rules and forms.

There was no change in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the fiscal quarter ended June 30, 2015 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
 
PART II. OTHER INFORMATION

Item 1. Legal Proceedings

LEGAL PROCEEDINGS

JDZ BLOCKS 5 AND 6

Arbitration and Lawsuit

The Company's rights in JDZ Blocks 5 and 6 are currently the subject of legal proceedings at the London Court of International Arbitration and the Federal High Court in Abuja, Nigeria. The Company instituted both proceedings in November 2008 against the JDA and the Governments of Nigeria and Săo Tomé and Príncipe.  The Company seeks legal clarification that its rights in the two Blocks remain intact.

The issue in contention is contractual. The Company was awarded a 15 percent working interest in each of the Blocks in a 2004/5 bid/licensing round conducted by the JDA following the Company's exercise of preferential rights in the Blocks as guaranteed by contract and treaty.  The JDA and the Government of STP contend that certain correspondence issued by a previous CEO/President of the Company in 2006 amount to a relinquishment of the Company's rights in Blocks 5 and 6 under the Company's contracts with STP which provide for the rights.  The Company contends that no such relinquishment has occurred and has sought recourse to arbitration accordingly. It also filed the suit to prevent any tampering with its said rights in JDZ Blocks 5 and 6 pending the outcome of arbitration.

Suspension of Proceedings on the Arbitration and Lawsuit

Proceedings on the suit and the arbitration are currently suspended while the Company pursues amicable settlement with the Governments of Nigeria and Săo Tomé Príncipe.

ROUTINE CLAIMS AND OTHER MATTERS

From time to time, ERHC may be subject to routine litigation, claims, or disputes in the ordinary course of business.  ERHC intends to defend these matters vigorously.  The Company cannot predict with certainty, however, the outcome or effect of any of the arbitration or litigation specifically described above or any other pending litigation or claims.
 
Item 1A. Risk Factors

Our operation and financial results are subject to various risks and uncertainties that could affect our business, financial condition, results of operations, and trading price of our common stock, including but not limited to, failing financial institutions.  Please refer to our annual report on Form 10-K for fiscal year 2014 for additional information concerning these and other uncertainties that could negatively impact the Company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to A Vote of Security Holders

None.

Item 5. Other Information

None
 
Item 6. Exhibits

 
Signatures
   
10.1*
Kenya Farm-out agreement, related to Block 11A, Kenya, dated October 7, 2013, by and between ERHC Energy Kenya Limited and CEPSA Kenya Limited (incorporated herein by reference to Exhibit 10.1 of Form 10-Q/A filed May 14, 2014)
   
Rule 13a-14(a) Certification of the Chief Executive Officer
   
Rule 13a-14(a) Certification of the Principal Accounting Officer
   
Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer
   
Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Principal Accounting Officer
   
101.INS*
Instance Document
   
101.SCH*
XBRL Taxonomy Extension Schema Document
   
101.CAL*
XBRL Taxonomy Extension Calculation Linkbase Document
   
101.LAB*
XBRL Taxonomy Extension Label Linkbase Document
   
101.PRE*
XBRL Taxonomy Extension Presentation Linkbase Document
   
 
* Filed or furnished herewith.
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ERHC Energy Inc.

Name
Title
Date
     
/s/ Peter Ntephe
President
August 14, 2015
Peter Ntephe
Chief Executive Officer
 
     
/s/ Sylvan Odobulu
Vice President (Admin) and Controller
August 14, 2015
Sylvan Odobulu
Principal Accounting Officer
 
 
 
32