ERHC Energy Inc. announced the completion of its farm-out agreement with CEPSA (Compañía Española de Petróleos, S.A.U.). The completion of the farm-out follows the receipt of final regulatory approvals from the Kenyan Government. CEPSA has acquired a 55% stake in Block 11A and will operate the Block in exchange for certain considerations.

ERHC retains a 35% interest in Block 11A. The parties will proceed with a previously announced 2D seismic survey of at least 1,000 line kilometers of Block 11A in northwestern Kenya. The survey, which is expected to commence this spring, will be conducted by BGP Kenya Limited.

Block 11A is an oil and gas exploration Block in northwestern Kenya awarded to ERHC last year. Encompassing 11,950 square kilometers or 2.95 million acres, the Block is situated on the border of South Sudan to the north, Block 11B and Lake Turkana to the east, and near Kenya's border with Uganda to the west. In addition to its oil and gas exploration interests in the Republic of Kenya, ERHC holds interests in the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).