ERHC Energy Inc., a publicly traded American company with oil and gas assets in Sub-Saharan Africa, has issued a convertible note for the principal amount of $250,000 to The Chrome Group. The note will bear interest at the rate of eight percent and have a 12 month tenure.
The Chrome Group is an international oil and gas conglomerate and a longstanding major shareholder of ERHC. ERHC will apply the proceeds of the note to the execution of its exploration work programs as well as for general administrative expenses.
In addition to the private placement of convertible notes, ERHC continues to pursue other fundraising sources, including new private-equity investment and farm-outs of its interests in production sharing contracts with the governments of Kenya, Chad and Sao Tome & Principe respectively.
ERHC holds a 100 percent interest in Block BDS 2008 in Chad and is currently planning a seismic acquisition program, having completed an aero-gravity and magnetic survey late last year with positive results. ERHC also holds a carried 35 percent interest in Block 11A in Northwestern Kenya, where drilling is expected during the first quarter of 2016. The Company's offshore interests include Block 11 in the Sao Tomé and Principe Exclusive Economic Zone (EEZ) in respect of which the Company signed a PSC in July last year.
