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ERIN ENERGY CORPORATION - First quarter 2015 results and operational update

Release Date: 08/05/2015 14:00:00      Code(s): ERN     
Erin Energy Corporation
(Formerly CAMAC Energy Inc)
(Incorporated and registered in Delaware, United States of America)
Share code on the NYSE MKT: ERN
Share code on the JSE: ERN
ISIN: US1317452001
(?Erin Energy? or ?the Company?)

Erin Energy Announces First Quarter 2015 Results

Provides Operational Update on its West and East Africa Operations

HOUSTON, May 8, 2015 - Erin Energy Corporation (?Erin Energy? or the ?Company?) (NYSE
MKT: ERN) (JSE: ERN) announced today financial and operational results for the quarter ended
March 31, 2015. The Company plans to file its Form 10-Q for the first quarter 2015 with the
Securities and Exchange Commission later today.

First Quarter 2015 Highlights:

-   Successfully completed the Oyo-8 well and commenced production;
-   Progressed Oyo field expansion project;
-   Completed the 2-D seismic data acquisition program in Kenya; and
-   Signed a Joint Operating Agreement with partners in Ghana.

Operations Summary

In Nigeria, Oyo-8 was successfully completed in the Pliocene formation by the Sedco Express
drilling rig, and has since commenced production into the Armanda Perdana FPSO. The well is
currently undergoing choke optimization and has exceeded projections through each choke size
progression. As of May 7, 2015, the Oyo-8 was producing light sweet crude (35.5 degree AP) at
a stabilized oil rate of more than 6,000 barrels per day (?bbls/d?) on a 52/64-inch choke. The
plan is to further increase the choke size to achieve or exceed a 7,000 bbls/d rate.

Significant progress was made on the Oyo field expansion project and the Company is currently
conducting drilling and completion operations on the Oyo-7 well. The Company expects to bring
Oyo-7 on production in the next few weeks.

Erin Energy also continued discussions with potential farm-in partners on its drill-ready Miocene
prospects in Nigeria and its assets in The Gambia. In Kenya, the Company completed the
required 2-D seismic data acquisition and processing for onshore blocks L-1B and L-16 and
interpretation of the data is on-going. Erin Energy will be submitting an application for an
additional two-year exploration period.

For offshore Kenya blocks L-27 and L-28, the Company is pursuing completion of the
exploration work program and is working to identify a suitable partner on the blocks.

In Ghana, the Company signed a joint operating agreement and is making significant progress
toward determining the economic viability of developing the three previously discovered fields
on its Expanded Shallow Water Tano block while also working to mature exploration prospects.
Financial Summary

During the first quarter, Erin Energy reported a net loss of $33.1 million, or $0.16 per basic and
diluted share. There was no production in the first quarter due to the shut-in of the Oyo-5 and
Oyo-6 wells in preparation of tying-in the Oyo-7 and Oyo-8 wells. Available liquidity to the
Company including cash and cash equivalents and available borrowing facilities at March 31,
2015 was approximately $37.7 million.

The Company incurred exploration expenses totaling $6.5 million during the first three months
of the year and capital expenditures of approximately $68.2 million.

Conference Call

The Company will host a conference call today, May 8, 2015 at 10 a.m. CT (11 a.m. ET) to
discuss first quarter results and current operations. The dial-in number is 1 877-270-2148 in the
United States or +1 412-902-6510 internationally. To access the live audio webcast, please
visit the ?Investors? section of the Erin Energy?s website at www.erinenergy.com.

About Erin Energy

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

Forward-Looking Statements

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

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

Source: Erin Energy Corporation

Chris du Toit, +27 11 593 7301

Lionel McBee, +1 713 797 2960

(In thousands, except per share amounts)
                                                      Three Months Ended
                                                      March 31,
                                                      2015         2014
  Crude oil sales, net of royalties                   $?          $19,894

Operating costs and expenses:
  Production costs                                    21,328      22,897
  Exploratory expenses                                6,515       2,276
  Depreciation, depletion and amortization            697         4,971
  General and administrative expenses                 3,491       4,433
     Total operating costs and expenses               32,031      34,577

Operating loss                                        (32,031)    (14,683)

Other income (expense):
  Currency transaction gain (loss)                    1,436             ?
  Interest expense                                   (2,611)         (185)
  Other, net                                               ?           10
     Total other income (expense)                     (1,175)         (175)

Loss before income taxes                              (33,206)      (14,858)
Income tax expense                                          ?           ?
Net loss before non-controlling interest              (33,206)      (14,858)

  Net loss attributable to non-controlling interest        147         ?

  Net loss attributable to Erin Energy Corporation    $(33,059)     $(14,858)

Net loss per common share:
  Basic                                               $(0.16)        $ (0.13)
  Diluted                                             $(0.16)        $ (0.13)
Weighted average common shares outstanding:
  Basic                                               210,470         112,821
  Diluted                                             210,470         112,821
(In thousands, except for share and per share amounts)

                                                                        March      31, December
                                                                        2015           31, 2014
Current Assets:
  Cash and cash equivalents                                             $7,741        $25,143
  Restricted cash                                                       10,266        1,496
  Accounts receivable - partners                                        ?             496
  Accounts receivable - related party                                   624           624
  Accounts receivable - other                                           52            54
  Crude oil inventory                                                   1,065         1,089
  Prepaids and other current assets                                     3,819         2,929
     Total current assets                                               23,567        31,831

Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net   663,234       595,269
Other property, plant and equipment, net                                1,115         1,060
     Total property, plant and equipment, net                           664,349       596,329

Other non-current assets
  Restricted cash                                                       ?             8,909
  Debt issuance costs                                                   1,153         1,307
  Other non-current assets                                              67            67
     Other assets, net                                                  1,220         10,283

     Total assets                                                       $689,136      $638,443

Current Liabilities:
  Accounts payable and accrued liabilities                              $156,147      $108,047
  Accounts payable and accrued liabilities - related party              15,617        9,391
  Accounts payable - partners                                           397           ?
  Asset retirement obligations                                          6,705         12,703
  Current portion of long-term debt                                     12,307        6,200
     Total current liabilities                                          191,173       136,341

Long-term notes payable - related party                                 93,050        61,185
Term loan facility                                                      86,150        93,000
Asset retirement obligations                                            14,123        13,830
Other long-term liabilities                                      81         82

     Total liabilities                                      384,577     304,438

Commitments and contingencies

  Preferred stock $0.001 par value - 50,000,000 shares authorized;
none issued and outstanding
   at March 31, 2015 and December 31, 2014                         ?         ?
  Common stock $0.001 par value - 416,666,667 shares authorized;
210,849,951 and
    210,307,502 shares outstanding as of March 31, 2015 and
December 31, 2014                                                    211         210
  Additional paid-in capital                                     781,480      778,095
  Accumulated deficit                                           (478,013)    (444,954)
     Total equity - Erin Energy Corporation                      303,678     333,351
  Non-controlling interests                                          881         654
     Total equity                                                304,559     334,005
     Total liabilities and equity                               $689,136    $638,443
     (In thousands)

                                                                          Three   Months Ended
                                                                          March 31,
                                                                          2015         2014
Cash flows from operating activities
Net loss, including non-controlling interest                            $(33,206)   $  (14,858)

Adjustments to reconcile net loss to cash used in operating activities:
  Depreciation, depletion and amortization                                   120         4,531
  Accretion of asset retirement obligations                                  577           440
  Amortization of debt discount and debt issuance costs                      267             ?
  Foreign currency transaction gain                                       (1,436)            ?
  Share-based compensation                                                 1,320           507
  Payments to settle asset retirement obligations                         (6,282)            ?
  Change in operating assets and liabilities:
    (Increase) decrease in accounts receivable                               894         (3,042)
     Decrease in inventories                                                  13          7,437
     Increase in prepaids and other current assets                        (1,012)        (6,175)
     Increase in accounts payable and accrued liabilities                 22,157          7,388
       Net cash used in operating activities                             (16,588)        (3,772)

Cash flows from investing activities
Capital expenditures                                                     (35,300)        (2,050)
Allied transaction                                                             ?        (85,000)
       Net cash used in investing activities                             (35,300)       (87,050)

Cash Flows from Financing Activities
Proceeds from the issuance of common stock                                     ?        135,000
Proceeds from exercise of stock options                                        ?            415
Proceeds from notes payable - related party, net                          33,815            650
Allied transaction adjustments                                                 ?         (9,171)
Funding from non-controlling interest                                        374              ?
       Net cash provided by financing activities                          34,189        126,894
Effect of exchange rate changes on cash and cash equivalents                 297              ?

Net increase (decrease) in cash and cash equivalents                     (17,402)        36,072
Cash and cash equivalents at beginning of period                          25,143            163
Cash and cash equivalents at end of period                              $  7,741      $  36,235
Supplemental cash flow information
Cash paid for:
 Interest, net                                                          $  2,093      $       8
Non-cash investing and financing activities:
 Issuance of common shares for settlement of liabilities                $    125      $       ?
 Discount on notes payable pursuant to issuance of warrants             $  2,067      $       ?

8 May 2015

Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)

Date: 08/05/2015 02:00:00 Supplied by www.sharenet.co.za                     
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