----

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| o | Annual Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|--------------------------------------------------------------------------------|

| o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------|

| Colorado                                                       |   | 88-0218499                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 5444 Westheimer Road, Suite 1440, Houston, Texas               |   | 77056                                |
| (Address of Principal Executive Office)                        |   | (Zip Code)                           |

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TA

|     |   | PART I                                                                                                              |   | PAGE   |
|----------|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|
|     |   |                                                                                                                |   |   |
| Item 1.  |   | Business                                                                                                            |   | 4      |
| Item 1A. |   | Risk Factors                                                                                                        |   | 11     |
| Item 1B. |   | Unresolved Staff Comments                                                                                           |   | 15     |
| Item 2.  |   | Properties                                                                                                          |   | 16     |
| Item 3.  |   | Legal Proceedings                                                                                                   |   | 17     |
| Item 4.  |   | Submission of Matters to a Vote of Security Holders                                                                 |   | 17     |
|     |   |                                                                                                                |   |   |
|     |   | PART II                                                                                                             |   |   |
|     |   |                                                                                                                |   |   |
| Item 5.  |   | Market for Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities |   | 18     |
| Item 6.  |   | Selected Financial Data                                                                                             |   | 19     |
| Item 7.  |   | Management’s Discussion and Analysis of Financial Condition and Plan of Operations                            |   | 20     |
| Item 7A. |   | Quantitative and Qualitative Disclosures about Market Risk                                                          |   | 29     |
| Item 8.  |   | Financial Statements and Supplementary Data                                                                         |   | 30     |
| Item 9.  |   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures                               |   | 54     |
| Item 9A. |   | Controls and Procedures                                                                                             |   | 54     |
| Item 9B. |   | Other Information                                                                                                   |   | 54     |
|     |   |                                                                                                                |   |   |
|     |   | PART III                                                                                                            |   |   |
|     |   |                                                                                                                |   |   |
| Item 10. |   | Directors and Executive Officers of the Registrant                                                                  |   | 55     |
| Item 11. |   | Executive Compensation                                                                                              |   | 58     |
| Item 12. |   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                      |   | 66     |
| Item 13. |   | Certain Relationships and Related Transactions                                                                      |   | 67     |
| Item 14. |   | Principal Accounting Fees and Services                                                                              |   | 67     |
|     |   |                                                                                                                |   |   |
|     |   | PART IV                                                                                                             |   |   |
|     |   |                                                                                                                |   |   |
| Item 15. |   | Exhibits and Financial Statement Schedules                                                                          |   | 68     |
|     |   | Signatures                                                                                                          |   | 69     |

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|   | • | 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, without limitation, the ongoing investigations of the Company; |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | • | 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. |
|--------|---------|-------------------------------------------|

|   | • | 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 called 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 Sao Tome and Principe and the Federal Republic of Nigeria; |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | • | casualty losses; |
|--------|---------|------------------|

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|   | • | 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 environmental laws and 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. |
|--------|---------|------------------------------------------------------------------------------|

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|   | • | 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 Kina-1 well in JDZ Block 4 |
|--------|---------|--------------------------------|

|   | • | The Bomu-1 well in JDZ Block 2 |
|--------|---------|--------------------------------|

|   | • | The Lemba-1 well in JDZ Block 3 |
|--------|---------|---------------------------------|

|   | • | The Malanza-1 well and Oki East-1 well in Block 4 |
|--------|---------|---------------------------------------------------|

| JDZ Block |   | Operator  |   | Name of Well |   | Date Drilling Began |   | Date Well Completed |   | Rig/Drillship Used   |
|-----------|--------|-----------|--------|--------------|--------|---------------------|--------|---------------------|--------|----------------------|
|      |   |      |   |         |   |                |   |                |   |                 |
| 2         |   | Sinopec   |   | Bomu-1       |   | August 2009         |   | October 2009        |   | SEDCO 702            |
|      |   |      |   |         |   |                |   |                |   |                 |
| 3         |   | Addax Sub |   | Lemba-1      |   | October 2009        |   | November 2009       |   | Deepwater Pathfinder |
|      |   |      |   |         |   |                |   |                |   |                 |
| 4         |   | Addax     |   | Kina-1       |   | August 2009         |   | October 2009        |   | Deepwater Pathfinder |
|      |   |      |   |         |   |                |   |                |   |                 |
| 4         |   | Addax     |   | Malanza 1    |   | November 2009       |   | December 2009       |   | Deepwater Pathfinder |
|      |   |      |   |         |   |                |   |                |   |                 |
| 4         |   | Addax     |   | Oki East-1   |   | December 2009       |   | January 2010        |   | Deepwater Pathfinder |

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| JDZ Block |   | Results of Drilling Released by Operators                                                                                                                                                                                                                         |
|-----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                                                                                                              |
| 2         |   | The Bomu-1 well was drilled on time and within budget to a total depth of 3,580 meters resulting in the discovery of biogenic methane gas.  As of the 2010 fiscal year-end, the operator has not made any declaration of commerciality.                 |
|      |   |                                                                                                                                                                                                                                                              |
| 3         |   | The Lemba-1 well was drilled on time and below budget to a total depth of 3,758 meters, with biogenic methane gas discovered in two sands.  As of 2010 fiscal year-end, the operator has not made any declaration of commerciality.                     |
|      |   |                                                                                                                                                                                                                                                              |
| 4         |   | All wells were drilled on time and within budget to the planned depth. Biogenic methane gas was discovered in multiple sands in both the Kina well and the Oki East well. As of 2010 fiscal year-end, the operator has not made any declaration of commerciality. |

|   | • | The right to receive 100% working interest free signature bonus of two blocks of ERHC’s choice; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | The option to acquire up to a 15 percent paid working interest in additional two blocks of ERHC’s choice. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

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| JDZ Block |   | ERHC Original Participating Interest (1) |   | 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%                                       |
| 6         |   | 15.00%                                   |   |  -                               |   |  -                            |   | 15.00%                                       |
| 9         |   | 20.00%                                   |   |  -                               |   |  -                            |   | 20.00%                                       |

|   | (1) | The Original Participating Interest was the interest granted pursuant to the Option Agreement, dated April 2, 2003, between DRSTP and ERHC (the “2003 Option Agreement”). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 - a subsidiary of Addax Petroleum Corporation                                                                          |   | 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 |   |

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|   | • | the availability of future capital resources to the Company and the other participants for drilling additional wells; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

|   | • | the approval of other participants for determining well locations and drilling time-tables; |
|--------|---------|---------------------------------------------------------------------------------------------|

|   | • | the economic conditions at the time of drilling, including the prevailing and anticipated price of oil and gas; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------|

|   | • | the availability and cost of deep water drilling rigs and the availability of operating personnel |
|--------|---------|---------------------------------------------------------------------------------------------------|

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|   | • | Loss of future revenue and concessions as a result of hazards such as war, acts of terrorism, insurrection and other political risks |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Increases in taxes and governmental interests |
|--------|---------|-----------------------------------------------|

|   | • | Unilateral renegotiation of contracts by government entities |
|--------|---------|--------------------------------------------------------------|

|   | • | Difficulties in enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Changes in laws and policies governing operations of foreign-based companies, and |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | Currency restrictions and exchange rate fluctuations |
|--------|---------|------------------------------------------------------|

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|   | • | third party claims against the Company, which may include claims for special, indirect, derivative or consequential damages; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

|   | • | damage to our business, operations and reputation; |
|--------|---------|----------------------------------------------------|

|   | • | loss of, or adverse effect on, cash flow, assets, goodwill, operations and financial condition, business, prospects, profits or commercial  value; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | adverse consequences on the Company’s ability to obtain or continue financing for current or future projects; and/or |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | • | claims by directors, officers, employees, affiliates, advisors, attorneys, agents, debt holders or other interest holders or constituents of ERHC. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|  ERHC has interests in six of the nine Blocks in the Joint Development Zone (JDZ), a 34,548 sq km area approximately 200 km off the coast of Nigeria and Sao Tome and Principe that is adjacent to several large petroleum discovery areas. ERHC’s rights in the JDZ include: |   |  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--|

|   | • | 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% |
|--------|---------|-------------------------------|

|   | • | EEZ Block 4: 100% and no signature bonus |
|--------|---------|------------------------------------------|

|   | • | EEZ Block 11: 100% and no signature bonus |
|--------|---------|-------------------------------------------|

|   | • | The option to acquire up to a 15% paid working interest in additional two blocks of ERHC’s choice. |
|--------|---------|----------------------------------------------------------------------------------------------------------|

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|             |   | High              |   |   | Low    |   |
|------------------|--------|-------------------|--------|--------|--------|--------|
|             |   | (Price per share) |   |
| Fiscal Year 2008 |   |              |   |   |   |   |
| First Quarter    |   | $                 | 0.30   |   |   | $      | 0.19 |   |
| Second Quarter   |   |              | 0.54   |   |   |   | 0.18 |   |
| Third Quarter    |   |              | 0.60   |   |   |   | 0.40 |   |
| Fourth Quarter   |   |              | 0.42   |   |   |   | 0.28 |   |
|             |   |              |   |   |   |   |   |   |
| Fiscal Year 2009 |   |              |   |   |   |   |   |   |
| First Quarter    |   | $                 | 0.30   |   |   | $      | 0.11 |   |
| Second Quarter   |   |              | 0.36   |   |   |   | 0.10 |   |
| Third Quarter    |   |              | 0.72   |   |   |   | 0.29 |   |
| Fourth Quarter   |   |              | 0.90   |   |   |   | 0.60 |   |
|             |   |              |   |   |   |   |   |   |
| Fiscal Year 2010 |   |              |   |   |   |   |   |   |
| First Quarter    |   | $                 | 0.73   |   |   | $      | 0.44 |   |
| Second Quarter   |   |              | 0.75   |   |   |   | 0.35 |   |
| Third Quarter    |   |              | 0.62   |   |   |   | 0.20 |   |
| Fourth Quarter   |   |              | 0.42   |   |   |   | 0.20 |   |

| Plan Category                                              |   | Number of securities to be issued upon exercise of outstanding options, warrants and rights |      |   | Weighted-average Exercise price of outstanding options, warrants and rights |   |   | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |   |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|-----------|--------|----------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | (a)                                                                                         |      |   | (b)                                                                              |   |   | (c)                                                                                                                                              |   |
|                                                       |   |                                                                                        |      |   |                                                                             |   |   |                                                                                                                                             |   |
| Equity compensation plans approved by security holders     |   |                                                                                        | 1,000,000 |   |                                                                             | $      | 0.43   |                                                                                                                                             |   |   | 10,973,244 |   |
| Equity compensation plans not approved by security holders |   |                                                                                        | -         |   |                                                                             |   | -      |                                                                                                                                             |   |   | - |   |

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|   | • | During the first quarter of fiscal 2008, the Company issued an aggregate of 300,000 shares of common stock to the Company’s directors for services rendered in 2007. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | During the second quarter of fiscal 2009, the Company issued an aggregate of 450,000 shares of common stock to the Company’s directors for services rendered in 2005 and 2008. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | During the fourth quarter of fiscal 2009, the Company approved the issuance of an aggregate of 361,875 shares of common stock to the Company’s directors and non-management staff for services rendered in 2009. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | During the third and fourth quarter of 2010, we issued 1,017,500 shares for 2010 to employees and directors, for services rendered in 2010. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

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| Statements of Operations Data |   |
|-------------------------------|--------|
|                          |   | For the Years Ended September 30, |   |
|                          |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses            |   | $ | 5,188,495 |   |   | $ | 4,239,706 |   |   | $ | 4,280,143 |   |   | $ | 4,976,765 |   |   | $ | (24,113,494 | ) |
| Interest expense              |   |   | (1,843 | ) |   |   | (1,843 | ) |   |   | (1,843 | ) |   |   | (1,843 | ) |   |   | (2,099 | ) |
| Other Income (expense)        |   |   | (1,040,473 | ) |   |   | (3,447,588 | ) |   |   | 1,241,189 |   |   |   | 1,498,704 |   |   |   | 1,123,141 |   |
| Benefit (provision) for taxes |   |   |   |   |   |   | - |   |   |   | (30,360 | ) |   |   | 1,723,000 |   |   |   | (2,063,000 | ) |
| Net income (loss)             |   |   | (6,230,811 | ) |   |   | (7,689,137 | ) |   |   | (3,071,157 | ) |   |   | (1,756,904 | ) |   |   | 23,171,536 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| basic and diluted             |   |   | (0.01 | ) |   |   | (0.01 | ) |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | 0.03 |   |
| Weighted average shares of    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common stock outstanding      |   |   | 723,439,691 |   |   |   | 722,794,828 |   |   |   | 722,182,831 |   |   |   | 720,966,165 |   |   |   | 712,063,980 |   |

| Balance Sheets Data        |                     |
|----------------------------|--------------------------|
|                       | As of September 30, |   |
|                       | 2010                     |   | 2009 |   | 2008 |   | 2007 |   | 2006 |   |
|                       |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DRSTP Concession fee       |                     | $ | 2,839,500 |   |   | $ | 2,839,500 |   |   | $ | 2,839,500 |   |   | $ | 2,839,500 |   |   | $ | 2,839,500 |   |
| Total assets               |                     |   | 23,007,470 |   |   |   | 28,859,825 |   |   |   | 36,880,422 |   |   |   | 39,854,641 |   |   |   | 45,878,249 |   |
| Total liabilities          |                     |   | 517,425 |   |   |   | 5,209,900 |   |   |   | 5,907,960 |   |   |   | 5,947,982 |   |   |   | 10,390,126 |   |
| Shareholders’ equity |                     |   | 22,490,045 |   |   |   | 23,649,925 |   |   |   | 30,972,462 |   |   |   | 33,906,659 |   |   |   | 35,488,123 |   |

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|   | • | 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% |
|--------|---------|-------------------------------|

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|   | • | The Kina-1 well in JDZ Block 4 |
|--------|---------|--------------------------------|

|   | • | The Bomu-1 well in JDZ Block 2 |
|--------|---------|--------------------------------|

|   | • | The Lemba-1 well in JDZ Block 3 |
|--------|---------|---------------------------------|

|   | • | The Malanza-1 well and Oki East-1 well in Block 4 |
|--------|---------|---------------------------------------------------|

| JDZ Block |   | Operator  |   | Name of Well |   | Date Drilling Began |   | Date Well Completed |   | Rig/Drillship Used   |
|-----------|--------|-----------|--------|--------------|--------|---------------------|--------|---------------------|--------|----------------------|
|      |   |      |   |         |   |                |   |                |   |                 |
| 2         |   | Sinopec   |   | Bomu-1       |   | August 2009         |   | October 2009        |   | SEDCO 702            |
|      |   |      |   |         |   |                |   |                |   |                 |
| 3         |   | Addax Sub |   | Lemba-1      |   | October 2009        |   | November 2009       |   | Deepwater Pathfinder |
|      |   |      |   |         |   |                |   |                |   |                 |
| 4         |   | Addax     |   | Kina-1       |   | August 2009         |   | October 2009        |   | Deepwater Pathfinder |
|      |   |      |   |         |   |                |   |                |   |                 |
| 4         |   | Addax     |   | Malanza 1    |   | November 2009       |   | December 2009       |   | Deepwater Pathfinder |
|      |   |      |   |         |   |                |   |                |   |                 |
| 4         |   | Addax     |   | Oki East-1   |   | December 2009       |   | January 2010        |   | Deepwater Pathfinder |

| JDZ Block |   | Results of Drilling Released by Operators                                                                                                                                                                                                                   |
|-----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                                                                                                        |
| 2         |   | The Bomu-1 well was drilled on time and within budget to a total depth of 3,580 meters resulting in the discovery of biogenic methane gas. As of the 2010 fiscal year-end, the operator has not made any declaration of commerciality.                      |
|      |   |                                                                                                                                                                                                                                                        |
| 3         |   | The Lemba-1 well was drilled on time and below budget to a total depth of 3,758 meters, biogenic methane gas was discovered in two sands. As of the 2010 fiscal year-end, the operator has not made any declaration of commerciality.                       |
|      |   |                                                                                                                                                                                                                                                        |
| 4         |   | All wells were drilled on time and within budget to the planned depth.  Biogenic was discovered in multiple sands in both Kina well and Oki East well. As of the 2010 fiscal year-end, the operator has not made any declaration of commerciality |

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|   | • | 100 percent working interests free signature bonus in Blocks 4 and 11, and |
|--------|---------|----------------------------------------------------------------------------|

|   | • | The option to acquire up to a 15 percent paid working interest in additional two blocks of ERHC’s choice. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

| JDZ Block |   | ERHC Original Participating Interest (1) |   | 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%                                       |
| 6         |   | 15.00%                                   |   |  -                               |   |  -                            |   | 15.00%                                       |
| 9         |   | 20.00%                                   |   |  -                               |   |  -                            |   | 20.00%                                       |

|   | (1) | The Original Participating Interest granted pursuant to the Option Agreement, dated April 2, 2003, between DRSTP and ERHC (the “2003 Option Agreement”). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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 - a of 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 |   |

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|   | • | Expenses related to the Company's proposed listing on the Alternative Investment Market ("AIM") of the London Stock Exchange. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | • | General increase in expenses related to evaluation of new acquisition opportunities. |
|--------|---------|-------------------------------------------------------------------------------------------|

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|   | • | An increase in expenses related to evaluation of new acquisition opportunities during the year ended September 30, 2010 |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | And a decrease in interest income from $421,729 in the year ended September 30, 2009 to $18,106 in the year ended September 30, 2010, due to a loss of interest income as the Company switched from interest bearing but not guaranteed deposit accounts to non-interest bearing accounts by the Federal Deposit Insurance Corporation. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Contractual Obligations |   | Total  |    |   | Less Than 1 year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | More Than 5 Years |   |
|-------------------------|--------|--------|---------|--------|------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|-------------------|--------|
|                    |   |   |    |   |             |   |   |      |   |   |      |   |   |              |   |
| Convertible debt (1)    |   | $      | 33,513  |   |             | $      | 33,513 |      |   | $      | -         |   |   | $                 | -      |   |   | $ | - |   |
| Operating lease (2)     |   |   | 133,800 |   |             |   | 26,760 |      |   |   | 107,040   |   |   |              | -      |   |   |   | - |   |
|                    |   |   |    |   |             |   |   |      |   |   |      |   |   |              |   |   |   |   |   |   |
| Total                   |   | $      | 167,313 |   |             | $      | 60,273 |      |   | $      | 107,040   |   |   | $                 | -      |   |   | $ | - |   |

|   | (1) | This represents a convertible note to Joseph Charles and Associates. However, the Company has been unable to locate the payee. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Lease obligations consist of operating lease for office space. Office lease represent non-cancelable leases for office space used in our daily operations. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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It

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It

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|                                                                                                                                                                    |   | Page(s) |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| Reports of Independent Public Accounting Firm:                                                                                                                          |   |    |
|                                                                                                                                                                    |   |    |
| Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting as of September 30, 2010                                           |   | 31      |
|                                                                                                                                                                    |   |    |
| Report of Independent Registered Public Accounting Firm on the Financial Statements for the Years ended September 30, 2010, 2009  and 2008                    |   | 32      |
|                                                                                                                                                                    |   |    |
| Consolidated Financial Statements:                                                                                                                                      |   |    |
|                                                                                                                                                                    |   |    |
| Consolidated Balance Sheets as of September 30, 2010 and 2009                                                                                                           |   | 33      |
|                                                                                                                                                                    |   |    |
| Consolidated Statements of Operations for the Years Ended September 30,2010, 2009 and 2008, and for the period from inception, September 5, 1995,to September 30, 2010  |   | 34      |
|                                                                                                                                                                    |   |    |
| Consolidated Statements of Shareholders’ Equity for the period from inception, September 5, 1995, to September 30, 2010                                           |   | 35      |
|                                                                                                                                                                    |   |    |
| Consolidated Statements of Cash Flows for the Years Ended September 30, 2010, 2009 and 2008, and for the period from inception, September 5, 1995,to September 30, 2010 |   | 39      |
|                                                                                                                                                                    |   |    |
| Notes to Consolidated Financial Statements                                                                                                                              |   | 41      |
|                                                                                                                                                                    |   |    |
| Financial Statement Schedules                                                                                                                                           |   |    |

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|                                                                                                                                                                |   | 2010   |        |   | 2009   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                                                                                                                |   |   |        |   |   |   |
| ASSETS                                                                                                                                                              |   |   |        |   |   |   |
|                                                                                                                                                                |   |   |        |   |   |   |
| Current assets:                                                                                                                                                     |   |   |        |   |   |   |
| Cash and cash equivalents                                                                                                                                           |   | $      | 12,913,249  |   |   | $      | 22,428,728 |   |
| Marketable securities                                                                                                                                               |   |   | 5,000,958   |   |   |   | - |   |
| Prepaid expenses and other                                                                                                                                          |   |   | 199,808     |   |   |   | 447,345 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Total current assets                                                                                                                                                |   |   | 18,114,015  |   |   |   | 22,876,073 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| DRSTP concession fee                                                                                                                                                |   |   | 2,839,500   |   |   |   | 2,839,500 |   |
| Furniture and equipment, net of accumulated depreciation of $136,804 and $105,087 at September 30, 2010 and 2009,respectively                                       |   |   | 35,557      |   |   |   | 67,275 |   |
| Certificate of deposit                                                                                                                                              |   |   | -           |   |   |   | 1,058,579 |   |
| Deferred tax asset                                                                                                                                                  |   |   | 2,018,398   |   |   |   | 2,018,398 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Total assets                                                                                                                                                        |   | $      | 23,007,470  |   |   | $      | 28,859,825 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                |   |   |        |   |   |   |   |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Current liabilities:                                                                                                                                                |   |   |        |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                            |   | $      | 471,506     |   |   | $      | 5,050,590 |   |
| Accounts payable and accrued liabilities, related party                                                                                                             |   |   | -           |   |   |   | 115,236 |   |
| Accrued interest                                                                                                                                                    |   |   | 12,406      |   |   |   | 10,561 |   |
| Current portion of convertible debt                                                                                                                                 |   |   | 33,513      |   |   |   | 33,513 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Total current liabilities                                                                                                                                           |   |   | 517,425     |   |   |   | 5,209,900 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                       |   |   |        |   |   |   |   |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Shareholders' equity:                                                                                                                                               |   |   |        |   |   |   |   |   |
| Preferred stock, par value $0.0001; authorized 10,000,000; none issued and outstanding                                                                              |   |   | -           |   |   |   | - |   |
| Common stock, par value $0.0001; authorized 950,000,000shares; issued and outstanding 729,317,944 and 723,050,444 shares at December 31, 2010 and 2009,respectively |   |   | 72,932      |   |   |   | 72,305 |   |
| Additional paid-in capital                                                                                                                                          |   |   | 97,401,297  |   |   |   | 92,330,993 |   |
| Accumulated deficit                                                                                                                                                 |   |   | (74,984,184 | )      |   |   | (68,753,373 | ) |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Total shareholders’ equity                                                                                                                                    |   |   | 22,490,045  |   |   |   | 23,649,925 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                          |   | $      | 23,007,470  |   |   | $      | 28,859,825 |   |

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|                                                         |   | 2008   |        |   | 2009   |   |        | 2010   |   |   | “Unaudited” Inception to September 30, 2010 |   |
|--------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|--------|--------------------------------------------------------------|--------|
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |
| Costs and expenses:                                          |   |   |        |   |   |   |        |   |   |   |                                                         |   |
| General and administrative                                   |   | $      | 4,249,572   |   |   | $      | 4,202,809   |   |   | $      | 5,156,778                                                    |   |   | $ | 77,702,269 |   |
| Depreciation and depletion                                   |   |   | 30,571      |   |   |   | 36,897      |   |   |   | 31,717                                                       |   |   |   | 1,485,115 |   |
| Gain on sale of partial interest in DRSTP concession         |   |   | -           |   |   |   | -           |   |   |   | -                                                            |   |   |   | (30,102,250 | ) |
| Write-offs and abandonments                                  |   |   | -           |   |   |   | -           |   |   |   | -                                                            |   |   |   | 7,742,128 |   |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Total costs and expenses                                     |   |   | (4,280,143  | )      |   |   | (4,239,706  | )      |   |   | (5,188,495                                                   | )      |   |   | (56,827,262 | ) |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Other income and (expenses):                                 |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Interest income                                              |   |   | 1,241,189   |   |   |   | 421,729     |   |   |   | 18,106                                                       |   |   |   | 4,829,363 |   |
| Gain (loss) from settlements                                 |   |   | -           |   |   |   | 365,000     |   |   |   | -                                                            |   |   |   | 117,310 |   |
| Other income                                                 |   |   | -           |   |   |   | -           |   |   |   | -                                                            |   |   |   | 439,827 |   |
| Interest expense                                             |   |   | (1,843      | )      |   |   | (1,843      | )      |   |   | (1,843                                                       | )      |   |   | (12,130,591 | ) |
| Provision for loss on deposits                               |   |   | -           |   |   |   | (4,234,317  | )      |   |   | (1,058,579                                                   | )      |   |   | (5,292,896 | ) |
| Loss on extinguishment of debt                               |   |   | -           |   |   |   | -           |   |   |   | -                                                            |   |   |   | (5,749,575 | ) |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Total other income and (expenses), net                       |   |   | 1,239,346   |   |   |   | (3,449,431  | )      |   |   | (1,042,316                                                   | )      |   |   | (17,786,562 | ) |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Loss before benefit (provision) for income taxes             |   |   | (3,040,797  | )      |   |   | (7,689,137  | )      |   |   | (6,230,811                                                   | )      |   |   | (74,613,824 | ) |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Benefit (provision) for income taxes:                        |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Current                                                      |   |   | 449,640     |   |   |   | -           |   |   |   | -                                                            |   |   |   | (1,330,360 | ) |
| Deferred                                                     |   |   | (480,000    | )      |   |   | -           |   |   |   | -                                                            |   |   |   | 960,000 |   |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Total benefit (provision) for income taxes                   |   |   | (30,360     | )      |   |   | -           |   |   |   | -                                                            |   |   |   | (370,360 | ) |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Net loss                                                     |   | $      | (3,071,157  | )      |   | $      | (7,689,137  | )      |   | $      | (6,230,811                                                   | )      |   | $ | (74,984,184 | ) |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Net loss per common share - basic and diluted                |   | $      | (0.00       | )      |   | $      | (0.01       | )      |   | $      | (0.01                                                        | )      |   |   |   |   |
|                                                         |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Weighted average number shares of common shares outstanding: |   |   |        |   |   |   |        |   |   |   |                                                         |   |   |   |   |   |
| Basic and diluted                                            |   |   | 722,182,831 |   |   |   | 722,794,828 |   |   |   | 723,439,691                                                  |   |   |   |   |   |

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|                                                                |   | Common Stock |       |   | Additional Paid-In |   |   | Accumulated |   |   | Subscription |   |   | Deferred   |        |   |         |   |
|---------------------------------------------------------------------|--------|--------------|------------|--------|--------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------|-------------|--------|--------------|--------|
|                                                                |   | Shares       |       |   | Amount             |   |   | Capital     |   |   | Deficit      |   |   | Receivable |        |   | Compensation |   |   | Total |   |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |
| Balance at September 5, 1995                                   |   |         | -          |   |               | $      | -      |        |   | $      | -            |   |   | $          | -           |   |         | $      | - |   |   | $ | - |   |   | $ | - |   |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash                                        |   |         | 884,407    |   |               |   | 88     |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 88 |   |
| Common stock issued for services                                    |   |         | 755,043    |   |               |   | 76     |        |   |   | 499,924      |   |   |       | -           |   |         |   | - |   |   |   | (500,000 | ) |   |   | - |   |
| Net loss                                                            |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | (3,404      | )      |         |   | - |   |   |   | - |   |   |   | (3,404 | ) |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 1995                                       |   |         | 1,639,450  |   |               |   | 164    |        |   |   | 499,924      |   |   |       | (3,404      | )      |         |   | - |   |   |   | (500,000 | ) |   |   | (3,316 | ) |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash,net of expenses                        |   |         | 361,330    |   |               |   | 36     |        |   |   | 124,851      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 124,887 |   |
| Common stock issued for services                                    |   |         | 138,277    |   |               |   | 14     |        |   |   | 528,263      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 528,277 |   |
| Common stock issued forequipment                                    |   |         | 744,000    |   |               |   | 74     |        |   |   | 3,719,926    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 3,720,000 |   |
| Effect of reverse merger                                            |   |         | 1,578,470  |   |               |   | 158    |        |   |   | (243,488     | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | (243,330 | ) |
| Amortization of deferredcompensation                                |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | 72,500 |   |   |   | 72,500 |   |
| Net loss                                                            |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | (728,748    | )      |         |   | - |   |   |   | - |   |   |   | (728,748 | ) |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 1996                                       |   |         | 4,461,527  |   |               |   | 446    |        |   |   | 4,629,476    |   |   |       | (732,152    | )      |         |   | - |   |   |   | (427,500 | ) |   |   | 3,470,270 |   |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash                                        |   |         | 2,222,171  |   |               |   | 222    |        |   |   | 1,977,357    |   |   |       | -           |   |         |   | (913,300 | ) |   |   | - |   |   |   | 1,064,279 |   |
| Common stock issued for services                                    |   |         | 9,127,981  |   |               |   | 913    |        |   |   | 12,430,725   |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 12,431,638 |   |
| Common stock issued for oil andgas leases and properties            |   |         | 500,000    |   |               |   | 50     |        |   |   | 515,575      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 515,625 |   |
| Common stock issued forChevron contract                             |   |         | 3,000,000  |   |               |   | 300    |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 300 |   |
| Common stock issued forBAPCO acquisition                            |   |         | 4,000,000  |   |               |   | 400    |        |   |   | 499,600      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 500,000 |   |
| Contributed                                                         |   |         | (100,000   | )      |               |   | (10    | )           |   |   | (99,990      | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | (100,000 | ) |
| Amortization of deferredcompensation                                |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | 177,500 |   |   |   | 177,500 |   |
| Net loss                                                            |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | (16,913,052 | )      |         |   | - |   |   |   | - |   |   |   | (16,913,052 | ) |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 1997                                       |   |         | 23,211,679 |   |               |   | 2,321  |        |   |   | 19,952,743   |   |   |       | (17,645,204 | )      |         |   | (913,300 | ) |   |   | (250,000 | ) |   |   | 1,146,560 |   |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock and warrantsissued for cash                            |   |         | 1,124,872  |   |               |   | 113    |        |   |   | 972,682      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 972,795 |   |
| Common stock issued for services                                    |   |         | 1,020,320  |   |               |   | 102    |        |   |   | 1,526,878    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,526,980 |   |
| Common stock issued for Uintaacquisition                            |   |         | 1,000,000  |   |               |   | 100    |        |   |   | 1,999,900    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 2,000,000 |   |
| Common stock issued forNueces acquisition                           |   |         | 50,000     |   |               |   | 5      |        |   |   | 148,745      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 148,750 |   |
| Common stock issued foraccounts payable                             |   |         | 491,646    |   |               |   | 49     |        |   |   | 337,958      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 338,007 |   |
| Beneficial conversion feature  associated with convertibledebt |   |         | -          |   |               |   | -      |        |   |   | 1,387,500    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,387,500 |   |
| Receipt of subscriptionreceivable                                   |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | 913,300 |   |   |   | - |   |   |   | 913,300 |   |
| Option fee and penalty                                              |   |         | 299,536    |   |               |   | 30     |        |   |   | 219,193      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 219,223 |   |
| Common stock issued forbuilding equity                              |   |         | 24,000     |   |               |   | 2      |        |   |   | 69,998       |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Amortization of deferredcompensation                                |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | 125,000 |   |   |   | 125,000 |   |
| Net loss                                                            |   |         | -          |   |               |   | -      |        |   |   | -            |   |   |       | (11,579,024 | )      |         |   | - |   |   |   | - |   |   |   | (11,579,024 | ) |
|                                                                |   |         |       |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 1998                                       |   |         | 27,222,053 |   |               | $      | 2,722  |        |   | $      | 26,615,597   |   |   | $          | (29,224,228 | )      |         | $      | - |   |   | $ | (125,000 | ) |   | $ | (2,730,909 | ) |

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Table of Contents

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|                                                                                         |   | Common Stock |        |   | Additional Paid-In |   |   | Accumulated |   |   | Subscription |   |   | Deferred   |        |   |         |   |
|----------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------|-------------|--------|--------------|--------|
|                                                                                         |   | Shares       |        |   | Amount             |   |   | Capital     |   |   | Deficit      |   |   | Receivable |        |   | Compensation |   |   | Total |   |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |
| Balance at September 30, 1998                                                           |   |         | 27,222,053  |   |               | $      | 2,722  |        |   | $      | 26,615,597   |   |   | $          | (29,224,228 | )      |         | $      | - |   |   | $ | (125,000 | ) |   | $ | (2,730,909 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash                                                                 |   |         | 397,040,000 |   |               |   | 39,704 |        |   |   | 2,062,296    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 2,102,000 |   |
| Common stock issued for services                                                             |   |         | 7,169,000   |   |               |   | 717    |        |   |   | 1,034,185    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,034,902 |   |
| Common stock issued forUinta settlement                                                      |   |         | 7,780,653   |   |               |   | 778    |        |   |   | 2,541,161    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 2,541,939 |   |
| Common stock surrendered inBAPCO settlement                                                  |   |         | (7,744,000  | )      |               |   | (774   | )           |   |   | (2,709,626   | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | (2,710,400 | ) |
| Common stock issued foraccounts payable                                                      |   |         | 10,843,917  |   |               |   | 1,084  |        |   |   | 769,139      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 770,223 |   |
| Common stock issued for  conversion of debt andpayment of accruedinterest and penalties |   |         | 31,490,850  |   |               |   | 3,149  |        |   |   | 5,998,915    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 6,002,064 |   |
| Common stock issued for  officers' salary andbonuses                                    |   |         | 10,580,000  |   |               |   | 1,058  |        |   |   | 4,723,942    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 4,725,000 |   |
| Common stock issued forshareholder loans andaccrued interest payable                         |   |         | 3,939,505   |   |               |   | 394    |        |   |   | 771,318      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 771,712 |   |
| Reclassification of commonstock previously presentedas a liability                           |   |         | 750,000     |   |               |   | 75     |        |   |   | 1,499,925    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,500,000 |   |
| Amortization of deferredcompensation                                                         |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | 125,000 |   |   |   | 125,000 |   |
| Net loss                                                                                     |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (19,727,835 | )      |         |   | - |   |   |   | - |   |   |   | (19,727,835 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 1999                                                                |   |         | 489,071,978 |   |               |   | 48,907 |        |   |   | 43,306,852   |   |   |       | (48,952,063 | )      |         |   | - |   |   |   | - |   |   |   | (5,596,304 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued forconversion of debt andpayment of accruedinterest and penalties        |   |         | 7,607,092   |   |               |   | 761    |        |   |   | 295,120      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 295,881 |   |
| Net loss                                                                                     |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (1,958,880  | )      |         |   | - |   |   |   | - |   |   |   | (1,958,880 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2000                                                                |   |         | 496,679,070 |   |               |   | 49,668 |        |   |   | 43,601,972   |   |   |       | (50,910,943 | )      |         |   | - |   |   |   | - |   |   |   | (7,259,303 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                             |   |         | 37,000,000  |   |               |   | 3,700  |        |   |   | 1,846,300    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,850,000 |   |
| Net loss                                                                                     |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (6,394,810  | )      |         |   | - |   |   |   | - |   |   |   | (6,394,810 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2001                                                                |   |         | 533,679,070 |   |               |   | 53,368 |        |   |   | 45,448,272   |   |   |       | (57,305,753 | )      |         |   | - |   |   |   | - |   |   |   | (11,804,113 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cashnet of expenses                                                  |   |         | 4,000,000   |   |               |   | 400    |        |   |   | 643,100      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 643,500 |   |
| Common stock issued for services                                                             |   |         | 3,475,000   |   |               |   | 348    |        |   |   | 527,652      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 528,000 |   |
| Common stock issued foraccounts payable                                                      |   |         | 4,407,495   |   |               |   | 440    |        |   |   | 817,757      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 818,197 |   |
| Common stock issued for con -version of debt and pay-ment of accrued interestand penalties   |   |         | 7,707,456   |   |               |   | 771    |        |   |   | 1,540,721    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,541,492 |   |
| Common stock issued for  officer's salary andbonuses                                    |   |         | 2,700,000   |   |               |   | 270    |        |   |   | 289,730      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 290,000 |   |
| Net loss                                                                                     |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (4,084,210  | )      |         |   | - |   |   |   | - |   |   |   | (4,084,210 | ) |
|                                                                                         |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2002                                                                |   |         | 555,969,021 |   |               | $      | 55,597 |        |   | $      | 49,267,232   |   |   | $          | (61,389,963 | )      |         | $      | - |   |   | $ | - |   |   | $ | (12,067,134 | ) |

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Table of Contents

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|                                                                          |   | Common Stock |        |   | Additional Paid-In |   |   | Accumulated |   |   | Subscription |   |   | Deferred   |        |   |         |   |
|-------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------|-------------|--------|--------------|--------|
|                                                                          |   | Shares       |        |   | Amount             |   |   | Capital     |   |   | Deficit      |   |   | Receivable |        |   | Compensation |   |   | Total |   |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |
| Balance at September 30, 2002                                                 |   |         | 555,969,021 |   |               | $      | 55,597 |        |   | $      | 49,267,232   |   |   | $          | (61,389,963 | )      |         | $      | - |   |   | $ | - |   |   | $ | (12,067,134 | ) |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash, net of expenses                                 |   |         | 9,440,000   |   |               |   | 944    |        |   |   | 1,071,556    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,072,500 |   |
| Common stock issued for accounts payable                                      |   |         | 1,527,986   |   |               |   | 153    |        |   |   | 177,663      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 177,816 |   |
| Common stock issued for con - version of debt and payment of accrued interest |   |         | 17,114,740  |   |               |   | 1,711  |        |   |   | 3,421,227    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 3,422,938 |   |
| Net loss                                                                      |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (3,153,882  | )      |         |   | - |   |   |   | - |   |   |   | (3,153,882 | ) |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2003                                                 |   |         | 584,051,747 |   |               |   | 58,405 |        |   |   | 53,937,678   |   |   |       | (64,543,845 | )      |         |   | - |   |   |   | - |   |   |   | (10,547,762 | ) |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash, net of expenses                                 |   |         | 3,231,940   |   |               |   | 323    |        |   |   | 974,677      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 975,000 |   |
| Common stock issued for accounts payable                                      |   |         | 1,458,514   |   |               |   | 146    |        |   |   | 533,102      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 533,248 |   |
| Common stock issued for con - version of debt and payment of accrued interest |   |         | 11,185,052  |   |               |   | 1,119  |        |   |   | 2,236,093    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 2,237,212 |   |
| Common stock issued for Proceeds received in 2003                             |   |         | 1,000,000   |   |               |   | 100    |        |   |   | (100         | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | - |   |
| Beneficial conversion feature associated with the con-vertible line of credit |   |         | -           |   |               |   | -      |        |   |   | 1,058,912    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,058,912 |   |
| Options issued to employee                                                    |   |         | -           |   |               |   | -      |        |   |   | 765,000      |   |   |       | -           |   |         |   | - |   |   |   | (765,000 | ) |   |   | - |   |
| Amortization of deferred compensation                                         |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | 308,126 |   |   |   | 308,126 |   |
| Common stock issued for cash-less exercise of options and/or warrants         |   |         | 247,882     |   |               |   | 25     |        |   |   | (25          | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | - |   |
| Net loss                                                                      |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (3,593,388  | )      |         |   | - |   |   |   | - |   |   |   | (3,593,388 | ) |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2004                                                 |   |         | 601,175,135 |   |               |   | 60,118 |        |   |   | 59,505,337   |   |   |       | (68,137,233 | )      |         |   | - |   |   |   | (456,874 | ) |   |   | (9,028,652 | ) |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for accounts payable                                      |   |         | 735,000     |   |               |   | 73     |        |   |   | 359,716      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 359,789 |   |
| Common stock issued for con - version of debt and payment of accrued interest |   |         | 107,819,727 |   |               |   | 10,782 |        |   |   | 22,678,054   |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 22,688,836 |   |
| Common stock issued in settle-ment of lawsuits                                |   |         | 595,000     |   |               |   | 59     |        |   |   | 394,391      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 394,450 |   |
| Variable accounting for repriced employee stock options                       |   |         | -           |   |               |   | -      |        |   |   | 300,000      |   |   |       | -           |   |         |   | - |   |   |   | (300,000 | ) |   |   | - |   |
| Beneficial conversion feature associated with the con-vertible line of credit |   |         | -           |   |               |   | -      |        |   |   | 347,517      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 347,517 |   |
| Amortization of deferred compensation                                         |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | -           |   |         |   | - |   |   |   | 449,737 |   |   |   | 449,737 |   |
| Common stock issued for cash-less exercise of options and/or warrants         |   |         | 587,364     |   |               |   | 59     |        |   |   | (59          | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | - |   |
| Net loss                                                                      |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (11,270,478 | )      |         |   | - |   |   |   | - |   |   |   | (11,270,478 | ) |
|                                                                          |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2005                                                 |   |         | 710,912,226 |   |               | $      | 71,091 |        |   | $      | 83,584,956   |   |   | $          | (79,407,711 | )      |         | $      | - |   |   | $ | (307,137 | ) |   | $ | 3,941,199 |   |

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Table of Contents

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|                                                                  |   | Common Stock |        |   | Additional Paid-In |   |   | Accumulated |   |   | Subscription |   |   | Deferred   |        |   |         |   |
|-----------------------------------------------------------------------|--------|--------------|-------------|--------|--------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------|-------------|--------|--------------|--------|
|                                                                  |   | Shares       |        |   | Amount             |   |   | Capital     |   |   | Deficit      |   |   | Receivable |        |   | Compensation |   |   | Total |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |
| Balance at September 30, 2005                                         |   |         | 710,912,226 |   |               | $      | 71,091 |        |   | $      | 83,584,956   |   |   | $          | (79,407,711 | )      |         | $      | - |   |   | $ | (307,137 | ) |   | $ | 3,941,199 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                      |   |         | 4,665,000   |   |               |   | 467    |        |   |   | 1,976,081    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,976,548 |   |
| Variable accounting for repriced employee stock options               |   |         | -           |   |               |   | -      |        |   |   | (60,660      | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | (60,660 | ) |
| Issuance of warrants for success fee                                  |   |         | -           |   |               |   | -      |        |   |   | 5,154,500    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 5,154,500 |   |
| Issuance of options as comp- ensation to consultants                  |   |         | -           |   |               |   | -      |        |   |   | 1,145,000    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 1,145,000 |   |
| Common stock issued upon exercise of warrants                         |   |         | 800,000     |   |               |   | 80     |        |   |   | 159,920      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 160,000 |   |
| Amortization of deferred compensation                                 |   |         | -           |   |               |   | -      |        |   |   | (307,137     | )      |   |       | -           |   |         |   | - |   |   |   | 307,137 |   |   |   | - |   |
| Common stock issued for cash-less exercise of options and/or warrants |   |         | 2,611,756   |   |               |   | 261    |        |   |   | (261         | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | - |   |
| Net income                                                            |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | 23,171,536  |   |         |   | - |   |   |   | - |   |   |   | 23,171,536 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2006                                         |   |         | 718,988,982 |   |               |   | 71,899 |        |   |   | 91,652,399   |   |   |       | (56,236,175 | )      |         |   | - |   |   |   | - |   |   |   | 35,488,123 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Accounting for employee stock options                                 |   |         | -           |   |               |   | -      |        |   |   | 175,440      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 175,440 |   |
| Common stock issued upon exercise of warrants                         |   |         | 2,949,587   |   |               |   | 294    |        |   |   | (294         | )      |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | - |   |
| Net loss                                                              |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (1,756,904  | )      |         |   | - |   |   |   | - |   |   |   | (1,756,904 | ) |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2007                                         |   |         | 721,938,569 |   |               |   | 72,193 |        |   |   | 91,827,545   |   |   |       | (57,993,079 | )      |         |   | - |   |   |   | - |   |   |   | 33,906,659 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                      |   |         | 300,000     |   |               |   | 31     |        |   |   | 88,469       |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 88,500 |   |
| Accounting for employee stock options                                 |   |         | -           |   |               |   | -      |        |   |   | 48,460       |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 48,460 |   |
| Net loss                                                              |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (3,071,157  | )      |         |   | - |   |   |   | - |   |   |   | (3,071,157 | ) |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2008                                         |   |         | 722,238,569 |   |               |   | 72,224 |        |   |   | 91,964,474   |   |   |       | (61,064,236 | )      |         |   | - |   |   |   | - |   |   |   | 30,972,462 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                      |   |         | 811,875     |   |               |   | 81     |        |   |   | 366,519      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 366,600 |   |
| Net loss                                                              |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (7,689,137  | )      |         |   | - |   |   |   | - |   |   |   | (7,689,137 | ) |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2009                                         |   |         | 723,050,444 |   |               |   | 72,305 |        |   |   | 92,330,993   |   |   |       | (68,753,373 | )      |         |   | - |   |   |   | - |   |   |   | 23,649,925 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                      |   |         | 1,017,500   |   |               |   | 102    |        |   |   | 267,079      |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 267,181 |   |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for settlement of liability                       |   |         | 5,250,000   |   |               |   | 525    |        |   |   | 4,803,225    |   |   |       | -           |   |         |   | - |   |   |   | - |   |   |   | 4,803,750 |   |
| Net loss                                                              |   |         | -           |   |               |   | -      |        |   |   | -            |   |   |       | (6,230,811  | )      |         |   | - |   |   |   | - |   |   |   | (6,230,811 | ) |
|                                                                  |   |         |        |   |               |   |   |        |   |   |         |   |   |       |        |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2010                                         |   |         | 729,317,944 |   |               | $      | 72,932 |        |   | $      | 97,401,297   |   |   | $          | (74,984,184 | )      |         | $      | - |   |   | $ | - |   |   | $ | 22,490,045 |   |

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|                                                                           |   | 2008   |       |   | 2009   |   |       | 2010   |   |   | "Unaudited" Inception to September 30, 2010 |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------------------------------------------------|--------|
|                                                                           |   |   |       |   |   |   |       |   |   |   |                                             |   |
| Cash Flows From Operating Activities                                           |   |   |       |   |   |   |       |   |   |   |                                             |   |
| Net loss                                                                       |   | $      | (3,071,157 | )      |   | $      | (7,689,137 | )      |   | $      | (6,230,811                                       | )      |   | $ | (74,984,184 | ) |
| Adjustments to reconcile net loss to net cash used by operating activities:    |   |   |       |   |   |   |       |   |   |   |                                             |   |   |   |   |   |
| Depreciation and depletion expense                                             |   |   | 30,571     |   |   |   | 36,897     |   |   |   | 31,717                                           |   |   |   | 1,485,115 |   |
| Provision for loss on deposits                                                 |   |   | -          |   |   |   | 4,234,317  |   |   |   | 1,058,579                                        |   |   |   | 5,292,896 |   |
| Write-offs and abandonments                                                    |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 7,742,128 |   |
| Deferred income taxes                                                          |   |   | 30,360     |   |   |   | -          |   |   |   | -                                                |   |   |   | (2,018,398 | ) |
| Compensatory stock options                                                     |   |   | 48,460     |   |   |   | -          |   |   |   | -                                                |   |   |   | 1,308,240 |   |
| Gain from settlement                                                           |   |   | -          |   |   |   | (365,000   | )      |   |   | -                                                |   |   |   | (617,310 | ) |
| Gain on sale of partial interest in DRSTP concession                           |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | (30,102,250 | ) |
| Amortization of beneficial conversion feature associated with convertible debt |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 2,793,929 |   |
| Amortization of deferred compensation                                          |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 1,257,863 |   |
| Loss on extinguishment of debt                                                 |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 5,682,368 |   |
| Stock issued for services                                                      |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 20,897,077 |   |
| Stock issued for settlements                                                   |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 225,989 |   |
| Stock issued for officer bonuses                                               |   |   | -          |   |   |   | -          |   |   |   | 46,381                                           |   |   |   | 5,061,381 |   |
| Stock issued for interest and penalties on convertible debt                    |   |   | -          |   |   |   | -          |   |   |   | -                                                |   |   |   | 10,631,768 |   |
| Stock issued for board compensation                                            |   |   | 88,500     |   |   |   | 366,600    |   |   |   | 220,800                                          |   |   |   | 2,652,448 |   |
| Changes in operating assets and liabilities:                                   |   |   |       |   |   |   |       |   |   |   |                                             |   |   |   |   |   |
| Prepaid expenses and other current assets                                      |   |   | (19,464    | )      |   |   | (247,926   | )      |   |   | 247,537                                          |   |   |   | (199,807 | ) |
| Accounts payable and other accrued liabilities                                 |   |   | (156,342   | )      |   |   | 26,640     |   |   |   | 226,512                                          |   |   |   | (2,516,086 | ) |
| Accounts payable and accrued liabilities, related party                        |   |   | 116,319    |   |   |   | (239,700   | )      |   |   | (115,236                                         | )      |   |   | (3 | ) |
| Accrued retirement obligation                                                  |   |   | -          |   |   |   | (120,000   | )      |   |   | -                                                |   |   |   | 365,000 |   |
|                                                                           |   |   |       |   |   |   |       |   |   |   |                                             |   |   |   |   |   |
| Net cash used by operating activities                                          |   |   | (2,932,753 | )      |   |   | (3,997,309 | )      |   |   | (4,514,521                                       | )      |   |   | (45,041,836 | ) |

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|                                                           |   | 2008   |       |   | 2009   |   |       | 2010   |   |   | “Unaudited” Inception to September 30, 2010 |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------------------------------------------------------------|--------|
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |
| Cash Flows From Investing Activities                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |
| Purchase of US Treasury bills and accrued interest        |   | $      | -          |   |   | $      | -          |   |   | $      | (5,000,958                                                   | )      |   | $ | (5,000,958 | ) |
| Purchase of long-term investment                               |   |   | -          |   |   |   | (5,292,896 | )      |   |   | -                                                            |   |   |   | (5,292,896 | ) |
| Purchase of DRSTP concession                                   |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | (5,679,000 | ) |
| Proceeds from sale of partial interest inDRSTP concession      |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 45,900,000 |   |
| Purchase of furniture and equipment                            |   |   | (32,168    | )      |   |   | (38,079    | )      |   |   | -                                                            |   |   |   | (947,447 | ) |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Net cash provided (used) byinvesting activities                |   |   | (32,168    | )      |   |   | (5,330,975 | )      |   |   | (5,000,958                                                   | )      |   |   | 28,979,699 |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Cash Flows From Financing Activities:                          |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Proceeds from warrants exercised                               |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 160,000 |   |
| Proceeds from common stock, net ofexpenses                     |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Proceeds from line of credit, relatedparty                     |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 2,750,000 |   |
| Proceeds from non-convertible debt,related party               |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 158,700 |   |
| Proceeds from convertible debt, relatedparty                   |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 8,207,706 |   |
| Proceeds from sale of convertible debt                         |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 9,019,937 |   |
| Proceeds from bank borrowing                                   |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 175,000 |   |
| Proceeds from stockholder loans                                |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 1,845,809 |   |
| Proceeds from stock subscriptionreceivable                     |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 913,300 |   |
| Repayment of shareholder loans                                 |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | (1,020,607 | ) |
| Repayment of long-term debt                                    |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | (189,508 | ) |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Net cash provided byfinancing activities                       |   |   | -          |   |   |   | -          |   |   |   | -                                                            |   |   |   | 28,975,386 |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Net increase (decrease) in cash  and cashequivalents |   |   | (2,964,921 | )      |   |   | (9,328,284 | )      |   |   | (9,515,479                                                   | )      |   |   | 12,913,249 |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Cash and cash equivalents, beginning ofperiod                  |   |   | 34,721,933 |   |   |   | 31,757,012 |   |   |   | 22,428,728                                                   |   |   |   | - |   |
|                                                           |   |   |       |   |   |   |       |   |   |   |                                                         |   |   |   |   |   |
| Cash and cash equivalents, end of period                       |   | $      | 31,757,012 |   |   | $      | 22,428,728 |   |   | $      | 12,913,249                                                   |   |   | $ | 12,913,249 |   |

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ER

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|   | • | Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 2 Inputs—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 3 Inputs—Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|              |   | Quoted Prices In an Active Market for Identical Assets(Level 1) |      |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | Total  |   |
|-------------------|--------|-----------------------------------------------------------------|-----------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|--------|--------|
|              |   |                                                            |      |   |                                         |   |   |                                     |   |   |   |   |
| US Treasury Bills |   | $                                                               | 5,000,958 |   |                                         |   |   |                                     |   |   |   |   | 5,000,958 |   |
|              |   |                                                            |      |   |                                         |   |   |                                     |   |   |   |   |   |   |
| Total             |   | $                                                               | 5,000,958 |   |                                         | $      | -      |                                     |   | $      | -      |   |   | $ | 5,000,958 |   |

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|                 |   | Quoted Prices In an Active Market for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | Total     |   |
|----------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|-----------|--------|
|                 |   |                                                            |   |   |                                         |   |   |                                     |   |   |      |   |
| Long-term investment |   | $                                                               | -      |   |                                         |   | -      |                                     |   | $      | 1,058,579 |   |   | $ | 1,058,579 |   |
|                 |   |                                                            |   |   |                                         |   |   |                                     |   |   |      |   |   |   |   |   |
| Total                |   | $                                                               | -      |   |                                         | $      |   |                                     |   | $      | 1,058,579 |   |   | $ | 1,058,579 |   |

|                               |   | 2010   |       |   | 2009   |   |
|------------------------------------|--------|--------|------------|--------|--------|--------|
|                               |   |   |       |   |   |   |
| Balance, beginning of year         |   | $      | 1,058,579  |   |   | $      | 5,292,896 |   |
| Purchases                          |   |   | -          |   |   |   | - |   |
| Write down to estimated fair value |   |   | (1,058,579 | )      |   |   | (4,234,317 | ) |
|                               |   |   |       |   |   |   |   |   |
| Balance, end of year               |   | $      | -          |   |   | $      | 1,058,579 |   |

|                                      |   | 2010   |    |   | 2009   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                      |   |   |    |   |   |   |
| Accounts payable                          |   | $      | 471,506 |   |   | $      | 246,840 |   |
| Accrued stock payable – success fee |   |   | -       |   |   |   | 4,803,750 |   |
|                                      |   |   |    |   |   |   |   |   |
| Balance, end of year                      |   | $      | 471,506 |   |   | $      | 5,050,590 |   |

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| JDZ Block |   | ERHC Original Participating Interest |   | ERHC Joint Bid Participating Interest |   | Participating Interest(s) Sold |   | 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%                                       |
| 6         |   | 15.00%                               |   |  -                               |   |  -                        |   | 15.00%                                       |
| 9         |   | 20.00%                               |   |  -                               |   |  -                        |   | 20.00%                                       |

| 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 - a subsidiary of Addax Petroleum Corporation                                                                          |   | 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 |   |

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|    |   | Cost Basis |      |   | Cash Proceeds |   |       | Success Fee |   |   | Gain/Loss  |   |
|---------|--------|------------|-----------|--------|---------------|--------|------------|-------------|--------|--------|------------|--------|
|    |   |       |      |   |          |   |       |        |   |   |       |   |
| Block 2 |   | $          | 946,500   |   |          | $      | 20,400,000 |        |   | $      | 12,958,250 |   |   | $ | 6,495,250 |   |
| Block 3 |   |       | 946,500   |   |          |   | 7,500,000  |        |   |   | -          |   |   |   | 6,553,500 |   |
| Block 4 |   |       | 946,500   |   |          |   | 18,000,000 |        |   |   | -          |   |   |   | 17,053,500 |   |
|    |   |       |      |   |          |   |       |        |   |   |       |   |   |   |   |   |
| Total   |   | $          | 2,839,500 |   |          | $      | 45,900,000 |        |   | $      | 12,958,250 |   |   | $ | 30,102,250 |   |

|                             |   | 2010   |      |   | 2009   |   |
|----------------------------------|--------|--------|-----------|--------|--------|--------|
|                             |   |   |      |   |   |   |
| Net operating losses             |   | $      | 6,190,040 |   |   | $      | 4,683,533 |   |
| Income tax receivable            |   |   | 2,018,398 |   |   |   | 2,018,398 |   |
| Allowance for loss on deposits   |   |   | 449,896   |   |   |   | 1,439,668 |   |
| Accrued stock-based compensation |   |   | -         |   |   |   | 88,587 |   |
| Other                            |   |   | 81,771    |   |   |   |   |   |
|                             |   |   |      |   |   |   |   |   |
| Total deferred tax assets        |   |   | 8,380,211 |   |   |   | 8,230,186 |   |
| Valuation allowance              |   |   | 6,721,707 |   |   |   | (6,211,788 | ) |
|                             |   |   |      |   |   |   |   |   |
| Net deferred tax asset           |   | $      | 2,018,398 |   |   | $      | 2,018,398 |   |

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|                                         |   | 2010   |             |    | 2009   |   |       | 2008   |   |
|----------------------------------------------|--------|--------|------------------|---------|--------|--------|------------|--------|--------|
|                                         |   |   |             |    |   |   |       |   |   |
| Income tax benefit at federal statutory rate |   | $      | 2,118,476        |    |   | $      | 2,597,254  |   |   | $ | 1,033,870 |   |
| Change in valuation allowance                |   |   | (509,919         | )       |   |   | (2,575,312 | )      |   |   | (978,877 | ) |
| Expiration and adjustment of NOLs            |   |   |  (1,112,763 | )  |   |   |  -    |   |   |   |  - |   |
| Temporary differences                        |   |   | 353,656          | )       |   |   | -          |   |   |   | - |   |
| Stock compensation                           |   |   | (90,841          | )       |   |   | -          |   |   |   | (24,633 | ) |
| Consultants stock option expense             |   |   | -                |    |   |   | -          |   |   |   | - |   |
| State income tax                             |   |   | -                |    |   |   | -          |   |   |   | - |   |
| Penalties                                    |   |   | -                |    |   |   | (11,982    | )      |   |   | - |   |
| Other                                        |   |   | (51,297          | )       |   |   | (10,000    | )      |   |   | - |   |
|                                         |   |   |             |    |   |   |       |   |   |   |   |   |
| Income tax benefit                           |   | $      | -                |    |   | $      | -          |   |   | $ | 30,360 |   |

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|   | (i) | 237,500 shares for 2010 employee services rendered and fair value of $46,381 was recorded by the Company in 2010 as of September 30, 2010, unamortized compensation cost for these shares amounted to $110,369. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | 780,000 shares to Directors for 2010 services rendered and the fair value of $220,800 was recorded by the Company. |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (iii) | 5,250,000 shares issued to Feltang International, Inc. as settlement of the unpaid success fees (see Note 5) |
|--------|-------|--------------------------------------------------------------------------------------------------------------|

|   | (iii) | 315,000 shares to Directors for 2009 services rendered and the fair value of $226,800 was recorded by the Company. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------|

|   | (iv) | 240,000 shares to Directors for 2005 services rendered (these shares were issued in the second quarter of 2009). |
|--------|------|------------------------------------------------------------------------------------------------------------------|

|   | (v) | 46,875 shares to company non-management staff for 2009 services rendered and the fair value of $33,755 was recorded by the Company. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | 210,000 shares for 2008 services rendered and fair value of $72,450 was recorded 2008 issuances |
|--------|------|-------------------------------------------------------------------------------------------------|

|   | (vii) | 300,000 shares for 2007 services rendered and fair value of $88,500 was recorded (these shares were issued in the second quarter of 2008). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

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| Description                   |   | Warrants |       |   | Weighted Average Exercise Price |   |   | Market Price Intrinsic Value |   |   | Options |   |   | Weighted Average Exercise Price |       |   | Market Price Intrinsic Value |   |
|-------------------------------|--------|----------|------------|--------|---------------------------------|--------|--------|------------------------------|--------|--------|---------|--------|--------|---------------------------------|------------|--------|------------------------------|--------|
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |
| Balance at September 30, 2007 |   |     | 13,401,940 |   |                            | $      | 0.43   |                         |   | $      | -       |   |   |                            | 1,000,000  |   |                         | $      | 0.43 |   |   | $ | - |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Granted                       |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |
| Exercised                     |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |
| Expired or cancelled          |   |     | (4,281,940 | )      |                            |   | 0.31   |                         |   |   | -       |   |   |                            | -          |   |                         |   |   |   |   |   | - |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Balance at September30, 2008  |   |     | 9,120,000  |   |                            |   | 0.36   |                         |   |   | -       |   |   |                            | 1,000,000  |   |                         |   | 0.43 |   |   |   | - |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Granted                       |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |
| Exercised                     |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |
| Expired or cancelled          |   |     | (2,620,000 | )      |                            |   | 0.36   |                         |   |   | -       |   |   |                            | -          |   |                         |   |   |   |   |   | - |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Balance at September30, 2009  |   |     | 6,500,000  |   |                            |   | 0.36   |                         |   |   | -       |   |   |                            | 1,000,000  |   |                         |   | 0.43 |   |   |   | - |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Granted                       |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |
| Exercised                     |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |
| Expired or cancelled          |   |     | -          |   |                            |   |   |                         |   |   |    |   |   |                            | (1,000,000 | )      |                         |   | 0.43 |   |   |   |   |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Balance at September30, 2010  |   |     | 6,500,000  |   |                            |   | 0.36   |                         |   |   | -       |   |   |                            | -          |   |                         |   | - |   |   |   | - |   |
|                          |   |     |       |   |                            |   |   |                         |   |   |    |   |   |                            |       |   |                         |   |   |   |   |   |   |   |
| Exercisable                   |   |     | 6,500,000  |   |                            |   |   |                         |   |   |    |   |   |                            | -          |   |                         |   |   |   |   |   |   |   |

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| Year EndedSeptember 30, |   | Amount |    |
|------------------------------|--------|--------|---------|
|                         |   |   |    |   |
| 2011                         |   | $      | 107,040 |   |
|                         |   |   | 26,760  |   |
|                         |   |   |    |   |
|                         |   | $      | 133,800 |   |

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| For the Year Ended September 30, 2010        |   |
|----------------------------------------------|--------|
|                                         |   | First Quarter |   |   | Second Quarter |   |   | Third Quarter |   |   | Fourth Quarter |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses          |   | $ | 819,135 |   |   |   | 1,258,552 |   |   |   | 1,442,318 |   |   |   | 1,668,490 |   |
| Interest expense                             |   |   | 461 |   |   |   | 460 |   |   |   | 462 |   |   |   | 460 |   |
| Other income                                 |   |   | 228 |   |   |   | 161 |   |   |   | 88 |   |   |   | 17,629 |   |
| Provision for loss on deposits               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,058,579 | ) |
| Net loss attributable to common stockholders |   |   | (819,368 | ) |   |   | (1,258,851 | ) |   |   | (1,442,692 | ) |   |   | (2,709,900 | ) |
| Basic and diluted earnings per share         |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | (0.01 | ) |

| For the Year Ended September 30, 2009        |   |
|----------------------------------------------|--------|
|                                         |   | First Quarter |   |   | Second Quarter |   |   | Third Quarter |   |   | Fourth Quarter |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses          |   | $ | 710,181 |   |   | $ | 934,714 |   |   | $ | 1,270,463 |   |   | $ | 1,324,348 |   |
| Interest expense                             |   |   | 461 |   |   |   | 461 |   |   |   | 461 |   |   |   | 460 |   |
| Other income                                 |   |   | 281,535 |   |   |   | 130,640 |   |   |   | 8,339 |   |   |   | 366,215 |   |
| Provision for loss on deposits               |   |   | - |   |   |   | - |   |   |   | (2,117,158 | ) |   |   | (2,117,159 | ) |
| Net loss attributable to common stockholders |   |   | (429,107 | ) |   |   | (804,535 | ) |   |   | (3,379,743 | ) |   |   | (3,075,752 | ) |
| Basic and diluted earnings per share         |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | (0.01 | ) |

| For the Year Ended September 30, 2008        |   |
|----------------------------------------------|--------|
|                                         |   | First Quarter |   |   | Second Quarter |   |   | Third Quarter |   |   | Fourth Quarter |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses          |   | $ | 1,018,167 |   |   | $ | 1,170,240 |   |   | $ | 828,692 |   |   | $ | 1,263,044 |   |
| Interest expense                             |   |   | 461 |   |   |   | 461 |   |   |   | 460 |   |   |   | 461 |   |
| Other income                                 |   |   | 431,863 |   |   |   | 322,962 |   |   |   | 225,079 |   |   |   | 261,285 |   |
| Benefit (provision) for income tax           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (30,360 | ) |
| Net loss attributable to common stockholders |   |   | (586,765 | ) |   |   | (847,739 | ) |   |   | (604,073 | ) |   |   | (1,032,580 | ) |
| Basic and diluted earnings per share         |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | (0.00 | ) |   |   | (0.00 | ) |

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It

It

It

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It

| Name              |   | Age    |   | Position                                                   |
|-------------------|--------|--------|--------|------------------------------------------------------------|
|              |   |   |   |                                                       |
| Howard Jeter      |   | 64     |   | Director                                                   |
| Andrew Uzoigwe    |   | 68     |   | Director                                                   |
| Mr. Friday Oviawe |   | 49     |   | Director                                                   |
| Leslie Blair      |   | 58     |   | Director                                                   |
| Peter C. Ntephe   |   | 44     |   | Director, President and Chief Executive  Officer |

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| Name           |   | Fees Earned or Paid in Cash |   | Stock Awards (1) |   | Option Awards (2) |   | Non-Equity Incentive Plan Compensation |   | Change in Pension Value and Nonqualified Deferred Compensation Earnings |   | All Other Compensation |   | Total  |   |
|----------------|--------|-----------------------------|--------|------------------|--------|-------------------|--------|----------------------------------------|--------|-------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|
|           |   |                        |   |             |   |              |   |                                   |   |                                                                    |   |                   |   |   |   |   |   |   |   |   |   |
| Howard Jeter   |   | $                           | 85,125 |             |   | $                 | 28,350 |                                   |   | $                                                                       | -      |                   |   | $      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | 113,475 |   |
| Andrew Uzoigwe |   |                        | 92,625 |             |   |              | 28,350 |                                   |   |                                                                    | -      |                   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 120,975 |   |
| Leslie Blair   |   |                        | 42,625 |             |   |              | 54,700 |                                   |   |                                                                    | -      |                   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 97,325 |   |
| Friday Oviawe  |   |                        | 34,000 |             |   |              | 54,700 |                                   |   |                                                                    | -      |                   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 88,700 |   |

|   | (1) | The amounts included in the “Stock Awards” column represent the compensation cost recognized by the Company in 2010 related to non-option awards to directors, computed in accordance with ASC 718. As of September 30, 2010, no non-employee directors had any aggregate outstanding deferred shares. The number of shares underlying stock awards to directors during fiscal 2010 were as follows: Howard Jeter - 105,000 shares, Andrew Uzoigwe -105,000 shares, Leslie Blair - 190,000 and Friday Oviawe - 190,000 shares.  The disclosure relates solely to grants of restricted stock (Under Rule 144) in 2010. Certain of the shares awarded to directors in 2010 have not been issued. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The amounts included in the “Option Awards” column represent the compensation cost recognized by the Company in related to stock option awards to directors, computed in accordance with ASC 718. There were no stock option awards to directors in 2010. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Ite

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| • | a base salary rate typically targeted at a level that is competitive in our market as determined by the Compensation Committee, |
|---------|---------------------------------------------------------------------------------------------------------------------------------|

| • | other equity awards, including equity grants to new hires to attract talented personnel and occasional grants of options/restricted shares to retain our talented employees, and |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a comprehensive benefits package. |
|---------|-----------------------------------|

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| Name and Principal Position |   | Year   |   | Salary($) |    |   | Bonus($) |   |    | Stock Awards Authorized and Issued($) |   |   | Stock Awards Authorized Unissued($) |   |   | Option Awards($) |    |   | Non-Equity Incentive Plan Compensation($) |   |    | Change in Pension Value and Nonqualified Deferred Compensation Earnings($) |   |    | All Other Compensation($) |   |   | Total($) |    |
|-----------------------------|--------|--------|--------|-----------|---------|--------|----------|--------|---------|---------------------------------------|--------|--------|-------------------------------------|--------|--------|------------------|---------|--------|-------------------------------------------|--------|---------|----------------------------------------------------------------------------|--------|---------|---------------------------|--------|--------|----------|---------|
|                        |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |
| Peter Ntephe (1)            |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |
| Chief Operating Officer /   |   | 2010   |   |      | 236,000 |   |     |   | — |                                  |   |   | 19,350                              |   |   |             | 28,350  |   |                                      |   |    |                                                                       |   | — |                      |   |   | —  |    |   |   | 23,000 |   |   |   | 306,880 |   |
| Chief Executive Officer     |   | 2009   |   |      | 236,000 |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 236,000 |   |
|                        |   | 2008   |   |      | 131,733 |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 131,733 |   |
|                        |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |   |   |   |   |   |   |   |   |   |
| David Bovell  (2) |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Vice President - Corporate  |   | 2010   |   |      | 235,000 |   |     |   | — |                                  |   |   | 9,764                               |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 244,764 |   |
| Development                 |   | 2009   |   |      | 235,000 |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 235,000 |   |
|                        |   | 2008   |   |      | 95,000  |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 95,000 |   |
|                        |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Sylvan Odobulu (3)          |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Controller /Head Office     |   | 2010   |   |      | 162,769 |   |     |   | — |                                  |   |   | 9,764                               |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 172,533 |   |
| Administrator /Principal    |   | 2009   |   |      | 163,200 |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 163,200 |   |
| Accounting Officer          |   | 2008   |   |      | 138,900 |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 138,900 |   |
|                        |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Daniel Gralla (4)           |   |   |   |      |    |   |     |   |    |                                  |   |   |                                |   |   |             |    |   |                                      |   |    |                                                                       |   |    |                      |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Vice President - Technical  |   | 2010   |   |      | 48,000  |   |     |   | — |                                  |   |   | —                             |   |   |             | 7,323   |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 55,323 |   |
|                        |   | 2009   |   |      | 129,116 |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | 129,116 |   |
|                        |   | 2008   |   |      | — |   |     |   | — |                                  |   |   | —                             |   |   |             | — |   |                                      |   | — |                                                                       |   |    | —                   |   |   |     | — |   |   |   | — |   |   |   | — |   |

| (1) | Mr. Ntephe is contracted through ERHC’s holding company, ERHC Energy Cayman Limited and is paid a salary of $236,000 per year for his services as a COO and CEO. Stock awards and other compensation were awarded for his service as a director from April 2010 when he was elected to the board |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr. Bovell became VP of Corporate Development on May 1, 2008 and receives a salary of $235,000 per year. Mr. Bovell is contracted through ERHC’s holding company, ERHC Energy Cayman Limited. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Odobulu joined the Company in July 2006 as controller and has acted as Principal Accounting Officer since joining the Company. He is also the Corporate Administrator |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Gralla became Technical VP in December 2008 and received a base salary of $4,000 per month for four days service plus $1,400 per day for any additional services (if such additional services are required.) until the termination of the contract by mutual agreement on November 30, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | ERHC does not provide either a pension plan or a nonqualified deferred compensation plan for any of its employees. |
|-----|--------------------------------------------------------------------------------------------------------------------|

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| Name           |   | Grant Date |    |   | Estimated Future Payouts Under Non-Equity Incentive Plan Awards |   |    | Estimated Future Payouts Under Equity Incentive Plan Awards |   |   | All OtherStockAwards:Number ofShares ofStock orUnit(#) (1) |   |   | All OtherOptionAwards:Number ofSecuritiesUnderlyingOptions(#) (2) |    |   | Exerciseor BasePrice ofOptionAwards($ / Sh) |   |    | GrantDate FairValue ofStock andOptionAwards($) |   |
|----------------|--------|------------|---------|--------|-----------------------------------------------------------------|--------|---------|-------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------------------------------|---------|--------|---------------------------------------------|--------|---------|------------------------------------------------|--------|
|           |   |       |    |   | Threshold                                                       |   |    | Target                                                      |   |   | Maximum                                                    |   |   | Threshold                                                         |    |   | Target                                      |   |    | Maximum                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           |   |       |    |   | ($)                                                             |   |    | ($)                                                         |   |   | ($)                                                        |   |   | (#)                                                               |    |   | (#)                                         |   |    | (#)                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Peter Ntephe   |   |       | — |   |                                                            |   | — |                                                        |   |   | —                                                    |   |   |                                                              | — |   |                                        |   | — |                                           |   |   | — |   |   |   | — |   |   |   | 290,000 |   |   |   | — |   |   |   | — |   |   |   | 120,700 |   |
| David Bovell   |   |       | — |   |                                                            |   | — |                                                        |   |   | —                                                    |   |   |                                                              | — |   |                                        |   | — |                                           |   |   | — |   |   |   | — |   |   |   | 50,000 |   |   |   | — |   |   |   | — |   |   |   | 33,000 |   |
| Sylvan Odobulu |   |       | — |   |                                                            |   | — |                                                        |   |   | —                                                    |   |   |                                                              | — |   |                                        |   | — |                                           |   |   | — |   |   |   | — |   |   |   | 50,000 |   |   |   | — |   |   |   | — |   |   |   | 33,000 |   |
| David Gralla   |   |       | — |   |                                                            |   | — |                                                        |   |   | —                                                    |   |   |                                                              | — |   |                                        |   | — |                                           |   |   | — |   |   |   | — |   |   |   | 37,500 |   |   |   | — |   |   |   | — |   |   |   | 24,750 |   |

| (1) | The number in this column reflects the rule 144 restricted stocks awarded in 2010 pursuant to the 2004 Plan. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (2) | Reflects the dollar amounts recognized for financial statement reporting purposes for the fiscal year ended September 30, 2010 in accordance with ASC 505-50 of awards made pursuant to the 2005 Plan excluding any reduction in value due to potential service-based forfeitures. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|           |   |                                                |    | Stock Awards                                                                                |          |
|----------------|--------|-----------------------------------------------------|---------|---------------------------------------------------------------------------------------------|---------------|
|           |   | Option Awards                                       |    |                                                                                        |          |
| Name           |   | Number of Securities Underlying Unexercised Options |    | Equity IncentivePlan Awards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions(#) |          | Option Exercise Price($) |   | Option Expiration Date |   | Number ofShares orUnits ofStock ThatHave NotVested(#) |   | Market Valueof Shares orUnits ofStock ThatHave NotVested($) |   | EquityIncentivePlan Awards:Number ofUnearnedShares, Unitsor OtherRights ThatHave NotVested(#) |   | EquityIncentivePlan Awards:Market orPayout Valueof UnearnedShares, Unitsor OtherRights ThatHave NotVested($) |   |
|           |   | Exercisable                                         |    |                                                                                        | Unexercisable |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Peter Ntephe   |   |                                                | — |                                                                                        |          |   | — |   | — |   |   | — |   | — |   |   | 70,412 |   | 19,011 |   |   | — |   | — |   |
| David Bovell   |   |                                                | — |                                                                                        |          |   | — |   | — |   |   | — |   | — |   |   | 35,206 |   | 9,506 |   |   | — |   | — |   |
| Sylvan Odobulu |   |                                                | — |                                                                                        |          |   | — |   | — |   |   | — |   | — |   |   | 35,206 |   | 9,506 |   |   | — |   | — |   |
| David Gralla   |   |                                                | — |                                                                                        |          |   | — |   | — |   |   | — |   | — |   |   | 26,405 |   | 7,129 |   |   | — |   | — |   |

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|           |   | Option Awards                            |    |   | Stock Awards                  |   |
|----------------|--------|------------------------------------------|---------|--------|-------------------------------|--------|
| Name           |   | Number of Shares Acquired on Exercise(#) |    |   | Value Realized on Exercise($) |   |   | Number of Shares Acquired on Vesting(#) |   |   | Value Realized on Vesting($) |   |
|           |   |                                     |    |   |                          |   |   |   |   |   |   |   |   |   |
| Peter Ntephe   |   |                                     | — |   |                          |   | — |   |   |   | 29,588 |   |   |   | 13,610 |   |
| David Bovell   |   |                                     | — |   |                          |   | — |   |   |   | 14,794 |   |   |   | 6,805 |   |
| Sylvan Odobulu |   |                                     | — |   |                          |   | — |   |   |   | 14,794 |   |   |   | 6,805 |   |
| David Gralla   |   |                                     | — |   |                          |   | — |   |   |   | 11,095 |   |   |   | 5,104 |   |

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| Employee       |   | Position                                                                             |   | Date of Agreement  Commencement |   | Date of Agreement Termination |   |   | Term of Agreement |   |   | Monthly/Annual Compensation |             |   | Estimated Cost if Triggering Event Occurred at September 30, 2010 (*) |   |
|----------------|--------|--------------------------------------------------------------------------------------|--------|--------------------------------------|--------|-------------------------------|--------|--------|-------------------|--------|--------|-----------------------------|------------------|--------|----------------------------------------------------------------------------|--------|
|           |   |                                                                                 |   |                                 |   |                          |   |   |              |   |   |                        |             |   |                                                                       |   |
| Peter Ntephe   |   | President and Chief Executive Officer                                                |   | 4/22/2010                            |   | 4/21/2012                     |   |   | 2 years           |   |   | $                           | 19,667 / 236,000 |   |                                                                       | $      | 137,666 |   |
|           |   |                                                                                 |   |                                 |   |                          |   |   |              |   |   |                        |             |   |                                                                       |   |   |   |
| Daniel Gralla  |   | Technical Vice President                                                             |   | 10/1/2009                            |   | (1)                           |   |   | (1)               |   |   |                        | 4,000            | (1)    |                                                                       |   | - |   |
|           |   |                                                                                 |   |                                 |   |                          |   |   |              |   |   |                        |             |   |                                                                       |   |   |   |   |   |
| David Bovell   |   | Vice President of Corporate Development                                              |   | 5/1/2010                             |   | 4/30/2012                     |   |   | 2 years           |   |   | $                           | 19,583 / 235,000 |   |                                                                       | $      | 137,083 |   |
|           |   |                                                                                 |   |                                 |   |                          |   |   |              |   |   |                        |             |   |                                                                       |   |   |   |   |   |
| Sylvan Odobulu |   | Controller and Head Office Administrator and  Principal Accounting Officer |   | 7/3/2010                             |   | 7/2/2012                      |   |   | 2 years           |   |   | $                           | 13,500 / 162,000 |   |                                                                       | $      | 121,500 |   |

| (*) | In the first six months of the employment contracts, no termination benefits accrue to the employees. |
|-----|-------------------------------------------------------------------------------------------------------|

| (1) | Daniel Gralla's contract was intially for a six month period at a base rate of $4,000 per month for four working days per month plus additional compensation of $1,400 per day for services, if required, performed in excess of four days per month. The contract renewed under the same terms based on the mutual agreement of Mr. Gralla and the Company until it was terminated by mutual agreement on November 30, 2010. For termination without cause, Mr. Gralla received payment for services performed through the date of termination. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Plan Category                                             |   | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights |   |   | Weighted-average Exercise Price of Outstanding Options, Warrants and Rights |   |   | Number of Securities Remaining Available for Future issuance Under Equity Compensation Plans (excluding securities reflected in column (a)) |   |
|-----------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                      |   | (a)                                                                                         |   |   | (b)                                                                         |   |   |                                                                                                                                        |   |
| Equity compensation plansapproved by security holders     |   |                                                                                        | -      |   |                                                                        | $      | -      |                                                                                                                                        |   |   | 11,423,244 |   |
|                                                      |   |                                                                                        |   |   |                                                                        |   |   |                                                                                                                                        |   |   |   |   |
| Equity compensation plans notapproved by security holders |   |                                                                                        | -      |   |                                                                        |   | -      |                                                                                                                                        |   |   | - |   |

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| Name and Address                                                 |   | Shares of Common Stock Beneficially Owned(1) |        |   | Percentage of Voting Power |   |
|------------------------------------------------------------------|--------|----------------------------------------------|-------------|--------|----------------------------|--------|
|                                                             |   |                                         |        |   |                       |   |
| Principal Shareholders                                           |   |                                         |        |   |                       |   |
| Chrome Oil Services LTD (Sir Emeka Offor)                        |   |                                         | 200,285,727 | (1)    |                       |   | 27.49 | % |
| c/o No 22 Lobito, Wuse II                                        |   |                                         |        |   |                       |   |   |   |
| Abuja, Nigeria                                                   |   |                                         |        |   |                       |   |   |   |
|                                                             |   |                                         |        |   |                       |   |   |   |
| Chrome Energy, LLC (Sir Emeka Offor)                             |   |                                         | 103,305,706 | (2)    |                       |   | 14.18 | % |
| c/o No 22 Lobito Crescent, Wuse II,                              |   |                                         |        |   |                       |   |   |   |
| Abuja, Nigeria.                                                  |   |                                         |        |   |                       |   |   |   |
|                                                             |   |                                         |        |   |                       |   |   |   |
| Sir Emeka Offor                                                  |   |                                         | 307,796,433 | (1)(2) |                       |   | 42.25 | % |
| 228B Muri Okunola ST, PO Box 71898 Victoria Island               |   |                                         |        |   |                       |   |   |   |
| Lagos, Nigeria                                                   |   |                                         |        |   |                       |   |   |   |
|                                                             |   |                                         |        |   |                       |   |   |   |
| Directors and Named Executive Officer                            |   |                                         |        |   |                       |   |   |   |
| Peter Ntephe (3)                                                 |   |                                         | 573,889     |   |                       |   | * |   |
| Dr. Uzoigwe (3)                                                  |   |                                         | 325,000     |   |                       |   | * |   |
| Howard Jeter (3)                                                 |   |                                         | 325,000     |   |                       |   | * |   |
| Leslie Blair (3)                                                 |   |                                         | 85,000      |   |                       |   | * |   |
| Friday Oviawe (3)                                                |   |                                         | 85,000      |   |                       |   | * |   |
|                                                             |   |                                         |        |   |                       |   |   |   |
|                                                             |   |                                         |        |   |                       |   |   |   |
| All directors and named executive officer as a group (5 persons) |   |                                         | 1,393,889   |   |                       |   | 0.19 | % |

| * | Less than one percent. |
|---|------------------------|

| (1) | The number of shares beneficially owned by each person or group as of September 30, 2010 (except where another date is indicated) includes shares of common stock that such person or group had the right to acquire on or within 60 days after that date, including, but not limited to, upon the exercise of options and vesting and release of restricted stock units. To our knowledge, except as otherwise indicated in the footnotes to this table and subject to applicable community property laws, each stockholder named in the table has sole voting and investment power with respect to the shares set forth opposite such stockholder’s name. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Sir Emeka Offor is the beneficial owner of the shares held of record by Chrome Oil Services, Ltd., and Chrome Energy, LLC as the sole voting and investment power over these shares. He also holds 4,205,000 shares in his own name.  As a result of the shares held of record by Chrome Oil Services Ltd and Chrome Energy LLC, in addition to the shares held in his own name, Sir Emeka Offor is the beneficial owner of a total of 307,796,433 shares of common stock in ERHC as of November 30, 2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | c/o Suite 1440, 5444 Westheimer Road, Houston, TX 77056 |
|-----|---------------------------------------------------------|

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It

It

|               |   | 2010   |   |   | 2009   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| Audit fee          |   | $      | 79,975 |   |   | $      | 97,915 |   |
| Audit-related fees |   |   | 5,100  |   |   |   | 3,000 |   |
| Tax fees           |   |   | 13,350 |   |   |   | 17,395 |   |
| All other fees     |   |   | -      |   |   |   | - |   |
|               |   |   |   |   |   |   |   |   |
|               |   | $      | 98,425 |   |   | $      | 118,310 |   |

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It

|   | 1. | Consolidated Financial Statements:  See Index to Consolidated Financial Statements immediately following the signature pages of this report. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Consolidated Financial Statement Schedule: See Index to Consolidated Financial Statements immediately following the signature pages of this report. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The following documents are filed as exhibits to this report: |
|--------|----|---------------------------------------------------------------|

| EXHIBIT NO.   |   | IDENTIFICATION OF EXHIBIT                                                                                                                                                                                 |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit 3.1*  |   | Articles of Incorporation                                                                                                                                                                                 |
| Exhibit 3.2*  |   | Bylaws                                                                                                                                                                                                    |
| Exhibit 4.1*  |   | Specimen Common Stock Certificate.                                                                                                                                                                        |
| Exhibit 4.2*  |   | Form of Amended and Restated 12% Convertible Promissory Note, dated effective January 2001.                                                                                                               |
| Exhibit 4.3*  |   | Form of Amended and Restated 5.5% Convertible Promissory Note, dated effective January 2001.                                                                                                              |
| Exhibit 4.4*  |   | 20% Convertible Promissory Note, dated January 31, 2001, in favor of Chrome.                                                                                                                              |
| Exhibit 4.5*  |   | Term Loan Agreement, dated February 15, 2001, by and between Chrome and ERHC.                                                                                                                             |
| Exhibit 4.6*  |   | Senior Secured 10% Exchangeable 10% Convertible Promissory Note, dated January 31, 2001, in favor of Chrome.                                                                                              |
| Exhibit 4.7*  |   | Form of Warrant entitling Chrome to purchase common stock of the Company, exercise price of $0.40 per share.                                                                                              |
| Exhibit 10.1* |   | Option Agreement, dated April 7, 2003, by and between the Company and the Democratic Republic of Sao Tome and Principe (incorporated herein by reference to Exhibit 10.1 of Form 8-K filed April 2, 2003) |
| Exhibit 10.2* |   | Management and Administrative Services Agreement by and between Chrome Oil Services, Ltd. And the Company. (Incorporated by reference to Form 10-KSB filed September 24, 2001).                           |
| Exhibit 10.4* |   | Letter Agreement, dated November 29, 2004, by and between the Company and Chrome (incorporated herein by reference to Exhibit 10.1 of Form 8-K filed December 29, 2004).                                  |
| Exhibit 10.5* |   | Promissory Note, dated December 15, 2004, made by the Company in favor of Chrome (incorporated herein by reference to Exhibit 10.2 of Form 8-K filed December 29, 2004).                                  |
| Exhibit 10.6* |   | Promissory Note, dated December 15, 2004, made by the Company in favor of Chrome (incorporated herein by reference to Exhibit 10.3 of Form 8-K filed December 29, 2004).                                  |
| Exhibit 10.7* |   | Employment Agreement with Ali Memon.                                                                                                                                                                      |
| Exhibit 10.8* |   | Audit committee charter                                                                                                                                                                                   |
| Exhibit 10.9  |   | Employment Agreement with James Ledbetter                                                                                                                                                                 |
| Exhibit 10.10 |   | May 21, 2001 Memorandum of Agreement made b/w DRSTP and ERHC                                                                                                                                              |
| Exhibit 10.11 |   | March 15,  2003 Memorandum of Agreement made b/w DRSTP and ERHC                                                                                                                                 |
| Exhibit 10.12 |   | April 2, 2003 Option Agreement b/w DRSTP and ERHC                                                                                                                                                         |
| Exhibit 10.13 |   | Administrative Agreement b/w Nigeria/DRSTP and ERHC                                                                                                                                                       |
| Exhibit 10.14 |   | Block 2 Participation Agreement March 2, 2006 b/w ERHC, Addax and Sinopec                                                                                                                                 |
| Exhibit 10.15 |   | Block 2 Participation Agreement August 11, 2004 b/w ERHC and Pioneer                                                                                                                                      |
| Exhibit 10.16 |   | Block 3 Participation Agreement  February 16, 2006 b/w ERHC and Addax                                                                                                                           |
| Exhibit 10.17 |   | Block 4 Participation Agreement November 17, 2005 b/w ERHC and Addax                                                                                                                                      |
| Exhibit 10.18 |   | Block 4 2nd Amendment to Participation Agreement March 14, 2006                                                                                                                                           |
| Exhibit 10.19 |   | Block 4 3rd Amendment to Participation Agreement July 14, 2006                                                                                                                                            |
| Exhibit 10.20 |   | Employment Agreement with Sylvan Odobulu                                                                                                                                                                  |
| Exhibit 10.21 |   | Employment Agreement with David Alan Bovell                                                                                                                                                               |
| Exhibit 10.22 |   | Employment Agreement with Peter Ntephe                                                                                                                                                                    |
| Exhibit 31.1  |   | Certification Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                     |
| Exhibit 31.2  |   | Certification Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                     |
| Exhibit 32.1  |   | Certification Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                     |
| Exhibit 32.2  |   | Certification Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                     |

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SI

| ERHC Energy Inc. |                                             |
|------------------|--------------------------------------------------|
| By:    | //s//Peter Ntephe                                |   |
|             | Peter Ntephe                                     |   |
|             | President and  Chief Executive Officer |   |
|             | //s//Sylvan Odobulu                              |   |
|             | Sylvan Odobulu                                   |   |
|             | Principal Accounting Officer                     |   |

| Signature                       |   | Title                    |   | Date                         |
|---------------------------------|--------|--------------------------|--------|------------------------------|
| //s//  Howard Jeter   |   | Director                 |   | December 14,, 2010           |
| Howard Jeter                    |   | Member Audit Committee   |   |                         |
| //s//  Andrew Uzoigwe |   | Director                 |   | December 14,  2010 |
| Andrew Uzoigwe                  |   | Member Audit Committee   |   |                         |
| //s//  Leslie Blair   |   | Director                 |   | December 14, 2010            |
| Leslie Blair                    |   | Member Audit Committee   |   |                         |
| //s//  Friday Oviawe  |   | Director                 |   | December 14, 2010            |
| Friday Oviawe                   |   | Chairman Audit Committee |   |                         |

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