Erin Energy Announces Offtake and Prepayment Agreement With Glencore

Prepayment facility to provide up to $150 million

HOUSTON--(BUSINESS WIRE)-- Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE MKT: ERN) announced today it has agreed to heads of terms on a commercial agreement with an embedded prepayment element with Glencore Energy UK Ltd (“Glencore”), a subsidiary of Glencore PLC.

The offtake contract would allow Glencore to undertake the lifting of Oyo crude from the FPSO Armada Perdana for a minimum term of two years. The embedded prepayment element, which is subject to completion of legal documentation and certain conditions precedent, would provide proceeds in two tranches beginning with the completion of the Company’s Oyo-7 well. The initial tranche would be available in two equal drawdowns totalling up to $50 million, and would depend on Erin Energy’s ability to meet certain production targets. The second tranche would be an inventory revolving facility of up to $100 million.

Kase Lawal, Chairman and CEO of Erin Energy commented: “We are pleased to be working with Glencore as our commercial partner to further our development work offshore Nigeria. This prepayment facility would provide us with additional working capital and is a strong endorsement of our offshore Nigeria assets.”

About Erin Energy

Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 9 licenses across 4 countries covering an area of 43,000 square kilometers (10 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and Gambia, and onshore Kenya. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.

The Company’s actual results could differ materially from those anticipated or implied in these forward-looking statements due to a variety of factors, including the completion of the transactions identified in this release, and risks and other risk factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.

Source: Erin Energy Corporation

View source version on businesswire.com: http://www.businesswire.com/news/home/20150526005512/en/

Erin Energy Corporation
Investors:
Chris Heath, +1 713 797 2945
[email protected]
Media:
Lionel McBee, +1 713 797 2960
[email protected]

Source: Erin Energy Corporation

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