Offshore staff

(West Africa) - ERHC Energy Inc. says a subsidiary of the company has entered into a production sharing contract with Addax Petroleum (Nigeria Offshore 2) Ltd. (Addax), several oil and gas companies, and the Nigeria-Sao Tome and Principe Joint Development Authority to conduct petroleum operations in block 4 of the Joint Development Zone between Sao Tome & Principe and Nigeria.

A subsidiary of the company entered into a PSC with Addax Petroleum Resources Nigeria Ltd. (Addax Sub), several oil and gas companies, and the JDA to conduct petroleum operations in block 3 of the JDZ.

A subsidiary of the company also entered into a PSC with Sinopec International Petroleum E&P Corp. Nigeria (Sinopec), Addax Energy Nigeria Ltd. (Addax Ltd.), several oil and gas companies, and the JDA to conduct petroleum operations in block 2 of the JDZ.

Addax, Addax Sub, Sinopec, and Addax Ltd. are required to pay all of the company's future costs in respect of all future petroleum operations in blocks 2, 3, and 4 of the JDZ.

They are entitled to the company's share of cost oil until they recover the company's costs.

In November 2005, the company entered into a participation agreement with Addax with respect to block 4 of the JDZ where Addax paid the company $1.35 million and will be required to pay an additional $16.65 million on or before March 24, 2006.

In February 2006, The company entered into a participation agreement with Addax Sub with respect to block 3 where Addax Sub paid the company $500,000, and will be required to pay an additional $7 million on or before March 24, 2006.

On March 2, 2006, the company entered into a participation agreement with Sinopec and Addax Ltd. with respect to block 2 where Sinopec will pay the Company $13.6 million on or before March 25, 2006, and Addax Ltd. will pay the company $6.8 million on or before March 25, 2006.

The JDZ lies approximately 200 km offshore Nigeria and is adjacent to areas offshore Nigeria where several large petroleum discoveries have been made.

It contains 23 exploration blocks and is estimated to hold up to 14 Bbbl of oil.

The JDZ was established in 2001 following ratification of a formal bilateral treaty between Nigeria and Sao Tome and Principe. The JDZ is administered by the Joint Development Authority.

03/20/06