Go Back Email this Link to a friend


Erin Energy Corporation - Erin Energy Announces Second Quarter 2015 Results Including Form 10-q

Release Date: 12/08/2015 10:48:00      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 Second Quarter 2015 Results
Provides Operational Update on its West and East Africa Operations

HOUSTON, August 10, 2015 - Erin Energy Corporation (Erin Energy or the Company) (NYSE
MKT:ERN) (JSE:ERN) announced today financial and operational results for the quarter ended
June 30, 2015. The Company has filed its Form 10-Q for the second quarter 2015 with the
Securities and Exchange Commission.

Second Quarter 2015 Highlights:

-   Tied in the Oyo-7 and Oyo-8 wells;
-   Gross production of more than 450,000 barrels of oil;
-   Significant progress made on the technical evaluation of ESWT block in Ghana;
-   Extended exploration period on The Gambia blocks A2 and A5 through 2018; and
-   Application made to move to next phase of exploration of onshore Kenya blocks L1B and
    L16.

?Erin Energy continued to build momentum during the second quarter,? said Kase Lawal,
Chairman and Chief Executive Officer. ?Bringing the Oyo-7 and Oyo-8 wells on production were
significant milestones in your company?s history. During the quarter, we delivered production in
excess of 450,000 barrels of oil once the Oyo field was brought online. Growth is at the center
of Erin Energy and this achievement is just the beginning for us.?

Operations Summary

During the quarter, the Company commenced production of Oyo-7 and Oyo-8 wells offshore
Nigeria. As of August 1, 2015, the combined production rate of Oyo-7 and Oyo-8 wells was
approximately 13,100 barrels of oil per day (BOPD) (~11,500 BOPD net to the Company). The
Company continues to operate the wells by employing good reservoir management techniques
and the wells have outperformed Erin Energy?s pre-drill projections for the period.

The Company was granted an extension to the initial exploration period for the A2 and A5
blocks in The Gambia during the quarter, and subsequently commenced a 1,500 square
kilometre 3D seismic data acquisition over the blocks, which is expected to be completed in
September 2015 and is a key step in high-grading the asset.

In June, based on the 2D seismic interpretation and in accordance with the provisions of the
PSC, Erin Energy met with the Kenyan government and submitted the required applications to
enter the First Additional Exploration Period (FAEP) of both onshore blocks L1B and L16. The
Company expects the FAEP on both blocks will be granted during the third quarter 2015.
Additionally, Erin Energy has applied for a two-year extension of the Initial Exploration Period for
the offshore Kenya blocks L27 and L28 in order to seek a farm-in partner and to acquire 3D
seismic data.

In Ghana, significant progress was made on the technical evaluation of the three previously
discovered oil fields on the Expanded Shallow Water Tano block. The Company has now
commenced the economic evaluation of the resource volumes in place and expects to complete
the economic modelling and engage with the joint venture partners by September 2015.
Additionally, Erin Energy?s technical team continues the maturation process on several identified
prospects on the block.

Financial Summary

For the quarter, Erin Energy reported a net loss of $9.2 million, or $0.04 per basic and diluted
share. Following the tie-in of the Oyo-8 and Oyo-7 wells during the second quarter, oil
production averaged 7,642 BOPD (6,725 BOPD net to the Company). Second quarter revenues
were nil as liftings of Oyo crude did not commence until the beginning of the third quarter 2015.
Subsequent to second quarter ending, The Company generated revenue of $15.3 million from
crude lifting in July and received an additional $26.5 million as advance payment for a
scheduled August lifting of Oyo crude.

Production expense for the second quarter of 2015 was a net credit of $5.6 million due to an
agreed price reduction in the operating day rate with the operator of the FPSO for the period
from July 2014 to April 2015. This resulted in a $26 million production cost reduction recorded
in June 2015. Production expense for the same period 2014 was $15.5 million.

The Company incurred exploration expenses totaling $1.5 million during the second quarter of
2015, compared to $0.4 million in the same period 2014. Total capital expenditures in the
second quarter were approximately $68.1 million.

Conference Call and Webcast

The Company will host a conference call on Tuesday, August 11, 2015 at 10 a.m. CT (11 a.m.
ET) to discuss second quarter results and current operations. The dial-in number is 1 877-270-
2148 in the United States or +1 412-902-6510 internationally. A live audio webcast of the call
can be accessed on the Investors page of Erin Energy?s website at
erinenergy.eventsandpresentations.com. A replay of the webcast will be available on Erin
Energy?s website for approximately one year following the event.

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 kilometres (10 million acres), including
current production and other exploration projects offshore Nigeria, as well as exploration
licenses offshore Ghana, Kenya and The 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. More information about Erin Energy can be found at
www.erinenergy.com.

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

Contact:
Lionel McBee, +1 713 797 2960
lionel.mcbee@erinenergy.com

Chris du Toit, +27 11 593 7301
chris.dutoit@erinenergy.com

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
                                        ERIN ENERGY CORPORATION
                                       (formerly CAMAC ENERGY INC.)
                                CONSOLIDATED STATEMENTS OF OPERATIONS
                                                   (Unaudited)
                                     (In thousands, except per share amounts)

                                                           Three Months Ended June 30,        Six Months Ended June 30,
                                                             2015              2014            2015              2014
Revenues:
  Crude oil sales, net of royalties                    $             ? $         14,940 $              ? $          34,834
Operating costs and expenses:
  Production costs                                              (5,616)          15,459          15,712             38,356
  Workover expenses                                                618               ?              618                 ?
  Exploratory expenses                                           1,502              427           8,017              2,703
  Depreciation, depletion and amortization                         422            5,985           1,119             10,956
  Loss on settlement of asset retirement obligations             3,454               ?            3,454                 ?
  General and administrative expenses                            5,441            4,340           8,932              8,773
     Total operating costs and expenses                          5,821           26,211          37,852             60,788
Operating loss                                                  (5,821)          (11,271)       (37,852)           (25,954)
Other income (expense):
  Currency transaction gain                                        555                  32         1,991                  32
  Interest expense                                              (4,224)               (681)       (6,835)               (866)
  Other, net                                                        ?                  (10)           ?                   ?
      Total other income (expense)                              (3,669)               (659)       (4,844)               (834)
Loss before income taxes                                        (9,490)          (11,930)       (42,696)           (26,788)
Income tax expense                                                  ?                 ?              ?                  ?
Net loss before non-controlling interest                        (9,490)          (11,930)       (42,696)           (26,788)
   Net loss attributable to non-controlling interest                328                  ?            475                 ?
   Net loss attributable to Erin Energy Corporation    $        (9,162) $        (11,930) $     (42,221) $         (26,788)
Net loss per common share:
  Basic                                                $         (0.04) $          (0.06) $        (0.20) $          (0.17)
  Diluted                                              $         (0.04) $          (0.06) $        (0.20) $          (0.17)
Weighted average common shares outstanding:
  Basic                                                       211,108           198,035         210,791           155,428
  Diluted                                                     211,108           198,035         210,791           155,428
                                              ERIN ENERGY CORPORATION
                                             (formerly CAMAC ENERGY INC.)
                                           CONSOLIDATED BALANCE SHEETS
                                                         (Unaudited)
                                    (In thousands, except for share and per share amounts)
                                                                                         June 30,         December 31,
                                                                                           2015               2014
ASSETS
Current Assets:
   Cash and cash equivalents                                                         $          1,041 $          25,143
   Restricted cash                                                                              7,072             1,496
   Accounts receivable - partners                                                                  76               496
   Accounts receivable - related party                                                            624               624
   Accounts receivable - other                                                                    105                54
   Crude oil inventory                                                                         25,223             1,089
   Prepaids and other current assets                                                           3,523              2,929
       Total current assets                                                                    37,664            31,831
Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net                        705,838            595,269
Other property, plant and equipment, net                                                       1,232              1,060
       Total property, plant and equipment, net                                              707,070            596,329
Other non-current assets:
   Restricted cash                                                                                 ?              8,909
   Debt issuance costs                                                                          1,207             1,307
   Other non-current assets                                                                        67                67
       Other assets, net                                                                        1,274            10,283
       Total assets                                                                  $       746,008 $          638,443
LIABILITIES AND EQUITY
Current Liabilities:
   Accounts payable and accrued liabilities                                          $       180,696 $          108,047
   Accounts payable and accrued liabilities - related party                                   26,523              9,391
   Accounts payable - partners                                                                   101                 ?
   Asset retirement obligations                                                                   ?              12,703
   Current portion of long-term debt                                                          18,445              6,200
      Total current liabilities                                                              225,765            136,341
Long-term notes payable - related party                                                      115,164             61,185
Term loan facility                                                                            79,928             93,000
Asset retirement obligations                                                                  23,838             13,830
Other long-term liabilities                                                                       ?                  82
       Total liabilities                                                                     444,695            304,438
Commitments and contingencies
Equity:
   Preferred stock $0.001 par value - 50,000,000 shares
 authorized; none issued and outstanding at June 30, 2015 and
 December 31, 2014                                                                                   ?                ?
   Common stock $0.001 par value - 416,666,667 shares
 authorized; 211,501,647 and 210,307,502 shares
 outstanding as of June 30, 2015 and December 31, 2014                                              212             210
   Additional paid-in capital                                                                 787,722            778,095
   Accumulated deficit                                                                       (487,175)          (444,954)
      Total equity - Erin Energy Corporation                                                  300,759            333,351
   Non-controlling interests                                                                      554                654
      Total equity                                                                            301,313            334,005
      Total liabilities and equity                                                   $        746,008 $          638,443
                                        ERIN ENERGY CORPORATION
                                       (formerly CAMAC ENERGY INC.)
                                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                  (Unaudited)
                                                 (In thousands)


                                                                                           Six Months Ended June 30,
                                                                                            2015             2014
Cash flows from operating activities
Net loss, including non-controlling interest                                           $     (42,696) $       (26,788)
Adjustments to reconcile net loss to cash used in operating activities:
  Depreciation, depletion and amortization                                                       243           10,066
  Accretion of asset retirement obligations                                                      876              890
  Amortization of debt discount and debt issuance costs                                        1,119               ?
  Loss on settlement of asset retirement obligations                                           3,454               ?
  Foreign currency transaction gain                                                           (1,991)              ?
  Share-based compensation                                                                     3,434            1,394
  Payments to settle asset retirement obligations                                            (16,441)              ?
  Change in operating assets and liabilities:
     Decrease (increase) in accounts receivable                                                  470          (13,161)
     Decrease (increase) in inventories                                                       (9,861)           4,144
     Increase in prepaids and other current assets                                            (1,234)         (10,579)
     Increase in accounts payable and accrued liabilities                                     34,653            8,648
        Net cash used in operating activities                                                (27,974)         (25,386)
Cash flows from investing activities
Capital expenditures                                                                         (56,741)         (22,179)
Allied transaction                                                                                ?          (170,000)
          Net cash used in investing activities                                              (56,741)        (192,179)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock                                                        ?           270,000
Proceeds from exercise of stock options and warrants                                           1,855              415
Proceeds from notes payable - related party, net                                              57,815              650
Allied transaction adjustments                                                                    ?           (13,921)
Funding from non-controlling interest                                                            375               ?
          Net cash provided by financing activities                                           60,045          257,144
Effect of exchange rate changes on cash and cash equivalents                                       568                 ?
Net increase (decrease) in cash and cash equivalents                                         (24,102)          39,579
Cash and cash equivalents at beginning of period                                              25,143              163
Cash and cash equivalents at end of period                                             $       1,041 $         39,742
Supplemental cash flow information
Cash paid for:
 Interest, net                                                                         $       4,927 $                 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                            $       4,484     $         ?
 Related party accounts payable, net, settled with related party accounts receivable   $          ?      $     14,129
 Reduction in accounts payable from settlement of Northern Offshore contingency        $      24,307     $         ?
                           UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                                                Washington, D.C. 20549



                                                    FORM 10-Q
 (Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
   ACT OF 1934
                             For the quarterly period ended June 30, 2015
                                                            OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
   ACT OF 1934
                        For the transition period from        to
                                 Commission File Number: 01-34525


ERIN ENERGY CORPORATION
Delaware                                      30-0349798
(State or Other jurisdiction of              (I.R.S. Employer
incorporation or organization)               Identification No.)

1330 Post Oak Blvd.,
Suite 2250, Houston, Texas                                                                  77056
(Address of principal executive offices)                                                   (Zip Code)



                                                    (713) 797-2940
                                     (Registrant?s telephone number, including area code)


 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
 Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
 required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No?

 Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any,
 every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (? 232.405 of
 this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
 and post such files). Yes X No?

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or
 a smaller reporting company. See the definitions of ?large accelerated filer,? ?accelerated filer? and ?smaller reporting
 company? in Rule 12b-2 of the Exchange Act.
Large accelerated filer                                        Accelerated filer X                    ?
                               (Do not check if a
                               smaller reporting
Non-accelerated filer          company)                           Smaller reporting company            ?
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 Yes         No X

 Indicate the number of shares outstanding of each of the issuer?s classes of common stock, as of the latest practicable
 date.

 At August 3, 2015, there were 211,501,647 shares of common stock, par value $0.001 per share, outstanding.


PART I. ? FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
                   
                    ERIN ENERGY CORPORATION (formerly CAMAC ENERGY INC.)
                               CONSOLIDATED BALANCE SHEETS
                                          (Unaudited)
                     (In thousands, except for share and per share amounts)
                                                                                              June 30,
                                                                                                2015                    December 31, 2014
ASSETS
Current Assets:

    Cash and cash equivalents                                                           $            1,041          $            25,143

    Restricted cash                                                                                  7,072                        1,496

    Accounts receivable - partners                                                                       76                         496

    Accounts receivable - related party                                                                  624                        624

    Accounts receivable - other                                                                          105                         54

    Crude oil inventory                                                                             25,223                        1,089

    Prepaids and other current assets                                                                3,523                        2,929

         Total current assets                                                                       37,664                       31,831


Property, plant and equipment:

Oil and gas properties (successful efforts method of accounting), net                              705,838                      595,269

Other property, plant and equipment, net                                                             1,232                        1,060

         Total property, plant and equipment, net                                                  707,070                      596,329


Other non-current assets:


    Restricted cash                                                                                       ?                       8,909

    Debt issuance costs                                                                              1,207                        1,307

    Other non-current assets                                                                             67                          67

         Other assets, net                                                                           1,274                       10,283



         Total assets                                                                   $          746,008          $           638,443
LIABILITIES AND EQUITY
Current Liabilities:

    Accounts payable and accrued liabilities                             $      180,696      $   108,047

    Accounts payable and accrued liabilities - related party                      26,523            9,391

    Accounts payable - partners                                                      101               ?

    Asset retirement obligations                                                      ?            12,703

    Current portion of long-term debt                                             18,445            6,200

          Total current liabilities                                             225,765          136,341



Long-term notes payable - related party                                         115,164            61,185

Term loan facility                                                                79,928           93,000

Asset retirement obligations                                                      23,838           13,830

Other long-term liabilities                                                           ?                82



          Total liabilities                                                     444,695          304,438




Commitments and contingencies


Equity:
   Preferred stock $0.001 par value - 50,000,000 shares
 authorized; none issued and outstanding at June 30, 2015 and
December 31, 2014                                                                     ?                ?
   Common stock $0.001 par value - 416,666,667 shares
 authorized; 211,501,647 and 210,307,502 shares
 outstanding as of June 30, 2015 and December 31, 2014                               212              210

    Additional paid-in capital                                                  787,722          778,095
    Accumulated deficit                                                         (487,175 )       (444,954 )

          Total equity - Erin Energy Corporation                                300,759          333,351

    Non-controlling interests                                                        554              654

          Total equity                                                          301,313          334,005

          Total liabilities and equity                                   $      746,008      $   638,443



                  See accompanying notes to unaudited consolidated financial statements.
                                                                3

                     ERIN ENERGY CORPORATION (formerly CAMAC ENERGY INC.)
                           CONSOLIDATED STATEMENTS OF OPERATIONS
                                            (Unaudited)
                             (In thousands, except per share amounts)
                                          Three Months Ended June 30,             Six Months Ended June 30,
                                          2015                  2014             2015                  2014
Revenues:

  Crude oil sales, net of royalties   $          ?        $     14,940      $           ?        $     34,834

Operating costs and expenses:

  Production costs                        (5,616 )              15,459          15,712                 38,356

  Workover expenses                          618                        ?           618                       ?

  Exploratory expenses                     1,502                   427            8,017                  2,703
  Depreciation, depletion and
  amortization                               422                 5,985            1,119                10,956
  Loss on settlement of asset
  retirement obligations                   3,454                        ?         3,454                       ?
  General and administrative
  expenses                                 5,441                 4,340            8,932                  8,773
     Total operating costs and
     expenses                              5,821                26,211          37,852                 60,788

Operating loss                            (5,821 )            (11,271 )         (37,852 )             (25,954 )

Other income (expense):

  Currency transaction gain                  555                    32            1,991                     32
  Interest expense                        (4,224 )                (681 )         (6,835 )                 (866 )

  Other, net                                  ?                    (10 )             ?                      ?
    Total other income (expense)          (3,669 )                (659 )         (4,844 )                 (834 )

Loss before income taxes                  (9,490 )            (11,930 )         (42,696 )             (26,788 )

Income tax expense                               ?                      ?               ?                     ?
Net loss before non-controlling
interest                                  (9,490 )            (11,930 )         (42,696 )             (26,788 )

  Net loss attributable to non-
  controlling interest                       328                        ?           475                       ?

  Net loss attributable to Erin
  Energy Corporation                  $   (9,162 )        $   (11,930 )     $   (42,221 )        $    (26,788 )

Net loss per common share:
  Basic                               $    (0.04 )        $       (0.06 )   $     (0.20 )        $       (0.17 )
  Diluted                             $    (0.04 )        $       (0.06 )   $     (0.20 )        $       (0.17 )
Weighted average common shares
outstanding:

  Basic                                    211,108            198,035          210,791                    155,428

  Diluted                                  211,108            198,035          210,791                    155,428

          See accompanying notes to unaudited consolidated financial statements.
             ERIN ENERGY CORPORATION (formerly CAMAC ENERGY INC.)
                     CONSOLIDATED STATEMENTS OF EQUITY
                                (Unaudited)
                               (In thousands)

                                         Additional
                        Common            Paid-in           Accumulated       Non-controlling              Total
                         Stock            Capital              Deficit           Interest                  Equity
Balance at                                                                                   
December 31, 2014 $       210        $   778,095         $  (444,954)             $  654              $  334,005
Common stock
issued                       2             1,978                   ?                    ?                  1,980
Stock based
compensation                ?              3,165                   ?                    ?                  3,165
Warrants issued
with debt                   ?              4,484                   ?                    ?                  4,484
Funding from non-
controlling interest        ?                  ?                   ?                375                        375

Net loss                    ?                ?              (42,221 )              (475 )               (42,696 )
Balance at June 30,                                                                         301,31
2015                $     212        $ 787,722            $ (487,175)      $         554               $       3

          See accompanying notes to unaudited consolidated financial statements.

             ERIN ENERGY CORPORATION (formerly CAMAC ENERGY INC.)
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                               (In thousands)

                                                                                   Six Months Ended June 30,
                                                                                 2015                      2014
Cash flows from operating activities
Net loss, including non-controlling interest                              $    (42,696 )          $       (26,788 )

Adjustments to reconcile net loss to cash used in operating activities:

  Depreciation, depletion and amortization                                           243                   10,066
  Accretion of asset retirement obligations                                          876                      890

  Amortization of debt discount and debt issuance costs                            1,119                        ?

  Loss on settlement of asset retirement obligations                               3,454                        ?

  Foreign currency transaction gain                                              (1,991 )                       ?

  Share-based compensation                                                        3,434                      1,394

  Payments to settle asset retirement obligations                                (16,441 )                       ?
  Change in operating assets and liabilities:

     Decrease (increase) in accounts receivable                                      470                   (13,161)

     Decrease (increase) in inventories                                           (9,861)                    4,144
     Increase in prepaids and other current assets                                (1,234)                  (10,579)

     Increase in accounts payable and accrued liabilities                         34,653                     8,648
        Net cash used in operating activities                                    (27,974)                  (25,386)

Cash flows from investing activities
Capital expenditures                                                             (56,741)                  (22,179)

Allied transaction                                                                     ?                  (170,000)
         Net cash used in investing activities                                   (56,741)                 (192,179)

Cash Flows from Financing Activities

Proceeds from the issuance of common stock                                             ?                   270,000

Proceeds from exercise of stock options and warrants                               1,855                       415

Proceeds from notes payable - related party, net                                  57,815                       650

Allied transaction adjustments                                                         ?                    (13,921)

Funding from non-controlling interest                                                 375                         ?

        Net cash provided by financing activities                                  60,045                   257,144


Effect of exchange rate changes on cash and cash equivalents                          568                          ?


Net increase (decrease) in cash and cash equivalents                              (24,102)                    39,579

Cash and cash equivalents at beginning of period                                   25,143                        163

Cash and cash equivalents at end of period                                $         1,041     $               39,742
Supplemental cash flow information
Cash paid for:

 Interest, net                                                            $         4,927      $                   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              $          4,484      $                  ?
  Related party accounts payable, net, settled with related party
  accounts receivable                                                     $              ?      $             14,129
  Reduction in accounts payable from settlement of Northern Offshore
  contingency                                                             $         24,307      $                  ?

         See accompanying notes to unaudited consolidated financial statements.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Company Description
Erin Energy Corporation (NYSE MKT: ERN; JSE: ERN), formerly CAMAC Energy, Inc., is an
independent oil and gas exploration and production company focused on energy resources
in Africa. The Company?s asset portfolio consists of nine licenses across four countries
covering an area of approximately 43,000 square kilometers (approximately 10 million
acres). The Company owns producing properties offshore Nigeria and conducts exploration
activities offshore Nigeria, onshore and offshore Kenya, offshore The Gambia, and offshore
Ghana.
In April 2015, the Company changed its name to Erin Energy Corporation from CAMAC
Energy Inc. The Company is headquartered in Houston, Texas and has offices in Lagos,
Nigeria, Nairobi, Kenya, Banjul, The Gambia, Accra, Ghana and Johannesburg, South Africa.

 The Company?s operating subsidiaries include CAMAC Petroleum Limited (?CPL?),
 CAMAC Energy Kenya Limited, CAMAC Energy Gambia Ltd., and CAMAC Energy Ghana
 Limited. The terms ?we,? ?us,? ?our,? ?the Company,? and ?our Company? refer to Erin
 Energy Corporation and its subsidiaries.

 The Company also conducts certain business transactions with its majority shareholder,
 CAMAC Energy Holdings Limited (?CEHL?), and its affiliates, which include Allied Energy
 Plc. (?Allied?). See Note 8 - Related Party Transactions for further information.

 The Company?s Executive Chairman of the Board of Directors, and Chief Executive Officer,
 is a director of each of the above listed related parties. He indirectly owns 27.7% of CEHL,
 which is the majority shareholder of the Company. As a result, he may be deemed to have
 an indirect material interest in transactions contemplated with CEHL and any of its
 affiliates.
2. Basis of Presentation and Recently Issued Accounting Standards
The accompanying unaudited consolidated financial statements include the accounts of the
Company and its wholly owned and majority-owned direct and indirect subsidiaries and
have been prepared in accordance with generally accepted accounting principles in the
United States (?U.S. GAAP?) and pursuant to the rules and regulations of the Securities and
Exchange Commission (the ?SEC?). All significant intercompany transactions and balances
have been eliminated in consolidation. The unaudited consolidated financial statements
reflect all adjustments which are, in the opinion of management, necessary for a fair
presentation of the consolidated financial position and results of operations for the
indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q
should be read in conjunction with our audited consolidated financial statements included
in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the
SEC on March 16, 2015.
Reverse Stock Split
Effective April 22, 2015, the Company implemented a reverse stock split, whereby each six
shares of outstanding common stock pre-split was converted into one share of common
stock post-split (the ?reverse stock split?). All share and per share amounts for all periods
presented herein have been adjusted to reflect the reverse stock split as if it had occurred
at the beginning of the first period presented.
Use of Estimates

The preparation of the Company's consolidated financial statements in conformity with U.S.
GAAP requires management to make estimates based on certain assumptions. Estimates
affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and
the reported amounts of revenues and expenses attributable to the reporting periods.
Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of
judgment. These estimates and assumptions used in the preparation of the Company?s
consolidated financial statements are based on information available as of the date of the
consolidated financial statements, and while management believes that the estimates and
assumptions are appropriate, actual results could differ from management's estimates.

Estimates that may have a significant effect on the Company?s financial position and results
from operations include share-based compensation assumptions, oil and natural gas
reserve quantities, depletion and amortization relating to oil and natural gas


properties, asset retirement obligation assumptions, and income taxes. The accounting
estimates used in the preparation of the Company's consolidated financial statements may
change as new events occur, more experience is acquired, additional information is
obtained and our operating environment changes.
Capitalized Interest
The Company capitalizes interest costs for qualifying oil and gas properties. The
capitalization period begins when expenditures are incurred on qualified properties,
activities begin which are necessary to prepare the property for production, and interest
costs have been incurred. The capitalization period continues as long as these events occur.
Capitalized interest is added to the cost of the underlying assets and is depleted using the
unit-of-production method in the same manner as the underlying assets.

 During the six months ended June 30, 2015 and 2014, the Company capitalized $2.2
 million and $0.2 million, respectively, in interest cost as additions to property, plant and
 equipment related to the Oyo field redevelopment campaign.
Net Earnings (Loss) Per Common Share
Basic net earnings or loss per common share is computed by dividing net earnings or loss
by the weighted average number of shares of common stock outstanding at the end of the
reporting period. Diluted net earnings or loss per share is computed by dividing net
earnings or loss by the fully diluted common stock equivalent, which consists of shares
outstanding, augmented by potentially dilutive shares issuable upon the exercise of stock
options, unvested restricted stock awards, warrants, and conversion of the Convertible
Subordinated Note, calculated using the treasury stock method.
The table below sets forth the number of shares issuable pursuant to stock options,
unvested restricted stock awards, and shares issuable upon conversion of the Convertible
Subordinated Note that were excluded from diluted shares outstanding during the three
and six months ended June 30, 2015 and 2014, as these securities are anti-dilutive because
the Company was in a loss position for each period.

                                             Three Months Ended June 30,           Six Months Ended June 30,
(In thousands)                              2015                   2014           2015                  2014


Stock options                                1,476                  1,189         1,119                 1,216

Stock warrants                               1,046                         ?        426                        ?

Unvested restricted stock awards             1,348                  1,076         1,324                    977

Convertible note                             11,632                 11,632         11,632                 8,355

                                             15,502                 13,897         14,501                 10,548

 Upon the occurrence of certain events, the Company is also contingently liable to make
 additional payments to Allied, under the Transfer Agreement, up to an additional amount
 totaling $50.0 million in cash, or the equivalent in shares of the Company?s common
 stock, at Allied?s option. See Note 9 - Commitments and Contingencies for further
 information.
Fair Value of Financial Instruments
The Company measures assets and liabilities at fair value based on an expected exit price
as defined by the authoritative guidance on fair value measurements. Fair value is the price
that would be received to sell an asset or the price paid to transfer a liability in an orderly
transaction between willing market participants at the measurement date.
The carrying amounts of the Company?s financial instruments, which include cash and cash
equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and
accrued liabilities, and debts at floating interest rates, approximate their fair values at
June 30, 2015, and December 31, 2014, respectively, principally due to the short-term
nature, maturities or nature of interest rates of the above listed items.
Recently Issued Accounting Standards
In January 2015, the Financial Accounting Standards Board (?FASB?) issued Accounting
Standards Update (?ASU?) No. 2015-01, Income Statement - Extraordinary and Unusual
Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating
the Concept of Extraordinary Items. ASU No. 2015-01 eliminates from US GAAP the concept
of extraordinary items, and is effective for fiscal years beginning after December 15, 2015.
The Company will adopt this standards update, as required, beginning with the first
quarter of 2016. The adoption of this standards update is not expected to have a material
impact on the Company?s consolidated financial statements.

 In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810):
 Amendments to the Consolidation Analysis. ASU 2015-02 affects reporting entities that are
 required to evaluate whether they should consolidate certain legal entities. ASU No.
 2015-02 is effective for interim and annual periods beginning after December 15, 2015,
 and the Company will adopt this standards update, as required, beginning with the first
 quarter of 2016. The adoption of this standards update is not expected to have a material
 impact on the Company?s consolidated financial statements.

 In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest
 (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which is guidance
 for the reporting of debt issuance costs related to a recognized debt liability on an
 entity's balance sheet. Under the guidance, an entity must report debt issuance costs as a
 direct deduction from the carrying amount of that debt liability, consistent with the
 treatment for debt discounts. ASU No. 2015-03 is effective for interim and annual periods
 beginning after December 15, 2015; early adoption is permitted for financial statements
 that have not been previously issued. The Company will adopt this standards update
 beginning with the first quarter of 2016. The adoption of this standards update is not
 expected to have a material impact on the Company?s consolidated financial statements.

 In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other-
 Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in Cloud
 Computing Arrangement. ASU 2015-05 is new guidance to help entities evaluate the
 accounting for fees paid by a customer in a cloud computing arrangement. ASU No. 2015-
 05 is effective for interim and annual periods beginning after December 15, 2015, and the
 Company will adopt this standards update, as required, beginning with the first quarter
 of 2016. The adoption of this standards update is not expected to have a material impact
 on the Company?s consolidated financial statements.

 In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805):
 Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting
 Bulletin No. 115. The amendments in ASU 2015-08 amend various SEC paragraphs
 included in the FASB?s Accounting Standards Codification to reflect the issuance of Staff
 Accounting Bulletin No. 115 (?SAB 115?). SAB 115 rescinds portions of the interpretive
 guidance included in the SEC?s Staff Accounting Bulletins series and brings existing
 guidance into conformity with ASU No. 2014-17, ?Business Combinations (Topic 805):
 Pushdown Accounting,? which provides an acquired entity with an option to apply
 pushdown accounting in its separate financial statements upon occurrence of an event in
 which an acquirer obtains control of the acquired entity. The Company has adopted the
 amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are
 effective upon issuance. The adoption did not have an impact on the Company's
 consolidated financial statements.
3. Liquidity Matters
The Company?s primary cash requirements are for capital expenditures for the
redevelopment of the Oyo field in Nigeria, operating expenditures for the Oyo field,
exploration activities in its unevaluated leaseholds, working capital needs, and interest and
principal payments under current indebtedness.
Crude oil production is a primary source of operating cash for the Company. The Company
commenced production from the Oyo-8 well in early May 2015 and from the Oyo-7 well in
mid-June 2015. After a period of retooling and optimization, the current combined
production rate from the two wells is approximately 13,100 barrels of oil per day ("BOPD")
(approximately 11,500 BOPD net to the Company after royalty). In July 2015, the Company
lifted and sold approximately 312,000 Bbls of crude oil (274,000 Bbls net to the Company)
at a price of $55.78/Bbls. Net proceeds to the Company were approximately $15.3 million.
Further, the Company expects to sell approximately 650,000 Bbls of crude oil in August
2015 (572,000 Bbls net to the Company). If actual production rates decline substantially
below anticipated rates, or if oil prices decline significantly from current levels, the
Company may need to seek additional sources of capital.
In March 2015, the Company entered into a borrowing facility with Allied for a Convertible
Note (the "2015 Convertible Note"), separate from the existing $25.0 million Promissory
Note and the $50.0 million Convertible Subordinated Note, allowing the Company to
borrow up to $50.0 million for general corporate purposes. As of June 30, 2015, the
outstanding principal under the
2015 Convertible Note was $44.0 million. Subsequent to June 30, 2015, the Company
borrowed additional funds totaling $4.0 million under the note. See Note 7 - Debt for
additional information.
In May 2015, the Company executed a term sheet for a commodity-based Full Recourse
Prepayment Facility (the ?Prepayment Facility?) with Glencore Energy UK Ltd. The
Prepayment Facility, which is subject to completion of legal documentation and certain
conditions precedent, would provide proceeds in two tranches. The initial tranche, a term
prepayment facility, would be available to the Company in drawdowns totaling up to $50.0
million towards the Oyo field redevelopment program, and would depend on the
Company?s ability to meet certain production targets. The second tranche consists of an
inventory revolving facility up to a total of $100.0 million. The Company expects the
Prepayment Facility to be finalized during the third quarter of 2015.
In July 2015, the Company received $13.0 million as an advance under a stand-alone spot
sales contract with Glencore Energy UK Ltd. (the ?July Advance?). Interest accrued on the
July Advance at the rate of LIBOR plus 6.5%. Repayment of the July Advance was made
from the July crude oil lifting.
In August 2015, the Company received another advance amounting to $26.5 million under
a stand-alone spot sales contract with Glencore Energy UK Ltd. (the ?August Advance?).
Interest accrues on the August Advance at the rate of LIBOR plus 6.5%. Repayment of the
August Advance will be made from the August crude oil lifting.
The Company?s majority shareholder has formally committed to provide the Company with
additional funding, the form of which would be determined at the time of funding, sufficient
to maintain the Company?s operations and to allow the Company to meet its current and
future obligations as they become due for one year from March 12, 2015, the date of said
commitment.
4. Property, Plant and Equipment
 Property, plant and equipment were comprised of the following:
                                                                        June 30,
(In thousands)                                                            2015             December 31, 2014


Wells and production facilities                                    $     319,884       $         33,690

Proved properties                                                        386,196                386,196

Work in progress and other                                                98,994                261,346

  Oilfield assets                                                        805,074                681,232
  Accumulated depletion                                                 (109,676 )              (95,403 )

   Oilfield assets, net                                                  695,398                585,829

Unevaluated leaseholds                                                    10,440                   9,440

   Oil and gas properties, net                                           705,838                595,269


Other property and equipment                                                2,739                  2,324
 Accumulated depreciation                                                  (1,507 )               (1,264 )

   Other property and equipment, net                                        1,232                  1,060


Total property, plant and equipment, net                           $     707,070       $        596,329

All of the Company?s Oilfield assets are located in Nigeria. ?Work-in-progress and other?
includes ongoing costs for wells that are not yet completed, suspended exploratory well
costs, as well as warehouse inventory items purchased as part of the redevelopment plan of
the Oyo field .
5. Suspended Exploratory Well Costs
      In November 2013, the Company achieved both its primary and secondary drilling
      objectives for the Oyo-7 well. The primary drilling objective was to establish production
      from the existing Pliocene reservoir. The secondary drilling objective was to confirm the
      presence of hydrocarbons in the deeper Miocene formation. Hydrocarbons were
      encountered in three intervals totaling approximately 65 feet, as interpreted by logging-
      while-drilling (?LWD?) data. Management is making plans to further explore the Miocene
      formation in future wells. Suspended exploratory well costs were $26.5 million at both
      June 30, 2015, and December 31, 2014, for the costs related to the Miocene exploratory
      drilling activities.


         In August 2014, the Oyo-8 well was drilled to a total vertical depth of approximately
         6,059 feet (approximately 1,847 meters) and successfully encountered four new oil and
         gas reservoirs in the eastern fault block, with total gross hydrocarbon thickness of 112
         feet, based on results from the LWD data, reservoir pressure measurement, and
         reservoir fluid sampling. Management has commenced a detailed evaluation of the
         results and plans to further explore the Pliocene formation in the eastern fault block and
         establish the size of the incremental additions. Suspended exploratory well costs were
         $6.5 million at both June 30, 2015, and December 31, 2014, for the costs related to the
         Pliocene exploration drilling activities in the eastern fault block.
      6. Asset Retirement Obligations
      The Company?s asset retirement obligations primarily represent the estimated fair value of
      the amounts that will be incurred to plug, abandon and remediate certain oil and gas
      properties at the end of their productive lives. Significant inputs used in determining such
      obligations include, but are not limited to, estimates of plugging and abandonment costs,
      estimated future inflation rates and changes in property lives. The inputs are calculated
      based on historical data as well as current estimated costs.

         On a quarterly basis, the Company reviews the assumptions used to estimate the
         expected cash flows required to settle the asset retirement obligations, including
         changes in estimated probabilities, amounts and timing of the settlement of the asset
         retirement obligations, as well as changes in the legal obligation for each of its
         properties. Changes in any one or more of these assumptions may cause revisions in the
         estimated liabilities for the corresponding assets.

         The following summarizes changes in the Company?s asset retirement obligations during
         the six months ended June 30, 2015 ( in thousands ):

Balance at January 1                                                                     $      26,533

Accretion expense                                                                                     876

Additions                                                                                         9,416

Loss on settlement of asset retirement obligations                                               3,454
Cost incurred to settle asset retirement obligations                                           (16,441 )
Balance at June 30                                                                          $       23,838

        In April 2015, the Company completed plug and abandonment ("P&A") activities for well
        Oyo-6 that was previously shut-in. Actual P&A expenditures exceeded estimated P&A
        liabilities by $3.5 million. Accordingly, the Company recorded a $3.5 million loss on
        settlement of asset retirement obligations.

        The table below shows the current and long-term portions of the Company's asset
        retirement obligations as of the end of each period:
                                                                             June 30,
      (In thousands)                                                           2015                 December 31, 2014


      Asset retirement obligations, current portion                                     ?                  12,703

      Asset retirement obligations, long-term portion                           23,838                     13,830

                                                                        $       23,838          $          26,533

        Accretion expense is recognized as a component of depreciation, depletion and
        amortization expense in the accompanying consolidated statements of operations.
      7. Debt
      Promissory Note ? Long-Term (Related Party)
      The Company has a $25.0 million borrowing facility under a Promissory Note (the
      ?Promissory Note?) with Allied. Interest accrues on the outstanding principal under the
      Promissory Note at a rate of the 30-day London Interbank Offered Rate (?LIBOR?) plus
      2% per annum, payable quarterly. In March 2015, the Promissory Note was amended to
      extend the maturity date by one year to July 2016. The entire $25.0 million facility amount
      can be utilized for general corporate purposes. As of June 30, 2015, the outstanding
      principal and interest under the Promissory Note was $25.0 million and $0.6 million,
      respectively.
      Convertible Subordinated Note ? Long-Term (Related Party)
      As partial consideration in connection with the February 2014 closing of the Allied
      Transaction, the Company issued a $50.0 million Convertible Subordinated Note in favor of
      Allied (the ?Convertible Subordinated Note?). Interest on the Convertible Subordinated
      Note accrues at a rate per annum of one-month LIBOR plus 5%, payable quarterly in cash
      until the maturity of the Convertible Subordinated Note five years from the closing of the
      Allied Transaction.
      At the election of the holder, the Convertible Subordinated Note is convertible into shares
      of the Company?s common stock at an initial conversion price of $4.2984 per share, subject
      to anti-dilution adjustments. The Convertible Subordinated Note is subordinated to the
      Company?s existing and future senior indebtedness and is subject to acceleration upon an
      Event of Default (as defined in the Convertible Subordinated Note). The Company may, at
      its option, prepay the Convertible Subordinated Note in whole or in part, at any time,
      without premium or penalty, and is subject to mandatory prepayment upon (i) the
Company?s issuance of capital stock or incurrence of indebtedness, the proceeds of which
the Company does not apply to repayment of senior indebtedness or (ii) any capital
markets debt issuance to the extent the net proceeds of such issuance exceed $250.0
million. Allied may assign all or any part of its rights and obligations under the Convertible
Subordinated Note to any person upon written notice to the Company. As of June 30, 2015,
the outstanding principal and accrued interest under the Convertible Subordinated Note
was $50.0 million and $3.7 million, respectively.
Term Loan Facility
In September 2014, the Company, through its wholly owned subsidiary CPL, entered into a
credit facility with a Nigerian bank for a five-year senior secured term loan providing initial
borrowing capacity of up to $100.0 million (the ?Term Loan Facility?). 90% of the Term
Loan Facility is available in U.S. dollar, while the remaining 10% is available in Nigerian
Naira. U.S. dollar borrowings under the Term Loan Facility currently bear interest at the
rate of LIBOR plus 10.5%. The obligations under the Term Loan Facility include a legal
charge over OMLs 120 and 121 and an assignment of proceeds from oil sales. The
obligations of CPL have been guaranteed by the Company and rank in priority with all its
other obligations. Proceeds from the Term Loan Facility were used for the further
expansion and development of the Oyo field offshore Nigeria.
Under the Term Loan Facility, the following events, among others, constitute events of
default: CPL failing to pay any amounts due within thirty days of the due date; bankruptcy,
insolvency, liquidation or dissolution of CPL; a material breach of the Loan Agreement by
CPL that remains unremedied within thirty days of written notice by CPL; or a
representation or warranty of CPL proves to have been incorrect or materially inaccurate
when made. Upon any event of default, all outstanding principal and interest under any
loans will become immediately due and payable.
The Term Loan Facility contains normal and customary covenants including the delivery of
the Company?s annual audited financial information each year, and a provision of priority
of interest, in which the Company is to procure that its obligations under the Term Loan
Facility do and will rank in priority with all its other current and future unsecured and
unsubordinated obligations. The Company is also to provide a production and lifting
schedule each month displaying the daily production totals and quantities lifted
respectively from OMLs 120 and 121. The Company was in compliance with all loan
covenants as of June 30, 2015.
Upon executing the Term Loan Facility, the Company paid a $2.1 million commitment fee,
which was recorded as debt issuance cost and is being amortized over the life of the Term
Loan Facility using the effective interest method. As of June 30, 2015, $1.9 million of the
debt issuance cost remain unamortized. For the six months ended June 30, 2015, the
Company recognized an unrealized foreign currency gain of $1.6 million on the Naira
portion of the loan, reducing the net balance under the Term Loan Facility to $98.4 million.
Of this amount, $79.9 million was classified as long-term and $18.5 million as short-term.
Accrued interest for the Term Loan Facility was $2.5 million as of June 30, 2015.
2015 Convertible Note (Related Party)
In March 2015, the Company entered into a new borrowing facility with Allied for a
Convertible Note (the ?2015 Convertible Note?) allowing the Company to borrow up to
$50.0 million for general corporate purposes. The 2015 Convertible Note will mature in
December 2016. Interest accrues at the rate of LIBOR plus 5%, and is payable quarterly.
The 2015 Convertible Note is convertible into shares of the Company?s common stock upon
the occurrence and continuation of an event of default, at the sole option of the holder. The
number of shares issuable upon conversion is equal to the sum of the principal amount and
the accrued and unpaid interest divided by the conversion price, defined as the volume
weighted average of

the closing sales prices on the NYSE MKT for a share of common stock for the five complete
trading days immediately preceding the conversion date.
As of June 30, 2015, the Company had borrowed $44.0 million under the note and issued to
Allied warrants to purchase approximately 2.4 million shares of the Company?s common
stock at prices ranging from $2.46 to $7.85 per share. The total fair market value of the
warrants amounting to $4.5 million based on the Black-Scholes option pricing model was
recorded as a discount from the note, and is being amortized using the effective interest
method over the life of the note. As of June 30, 2015, the unamortized balance of the note
discount was $3.8 million.
Additional warrants are issuable in connection with future borrowings, with the per share
price for those warrants determined based on the market price of the Company?s common
stock at the time of such future borrowings. As of June 30, 2015, the Company owed $40.2
million under the 2015 Convertible Note, net of discount. Accrued interest on the 2015
Convertible Note was $0.5 million as of June 30, 2015.
Subsequent to June 30, 2015, the Company borrowed an additional $4.0 million under the
2015 Convertible Note and issued to Allied warrants to purchase approximately 0.2 million
shares of the Company's common stock with exercise prices ranging from $3.71 to $3.93
per share.
8. Related Party Transactions
Assets and Liabilities
The Company has transactions in the normal course of business with its shareholders,
CEHL and their affiliates. The following table sets forth the related party assets and
liabilities as of June 30, 2015 and December 31, 2014:
                                                                         June 30,
(In thousands)                                                             2015             December 31, 2014


Accounts receivable, CEHL                                           $          624      $             624

Accounts payable and accrued expenses, CEHL                         $      26,523       $           9,391

Notes payable - related party, CEHL                                 $     115,164       $         61,185

 As of June 30, 2015 and December 31, 2014, the Company owed $26.5 million and $9.4
 million, respectively, to an affiliate primarily for logistical and support services in
 relation to the Company's oilfield operations in Nigeria, as well as accrued interest on the
 various notes payable.

 As of June 30, 2015, the Company had a long-term note payable balance of $115.2 million
 owed to an affiliate, consisting of a $50.0 million Convertible Subordinated Note, $25.0
 million in borrowings under the Promissory Note, and $40.2 million in borrowings under
 the 2015 Convertible Note, net of discount. As of December 31, 2014, the Company had a
 long-term note payable balance of $61.2 million owed to an affiliate, consisting of a $50.0
 million Convertible Subordinated Note and $11.2 million in borrowings under the
 Promissory Note. See Note 7 ? Debt for further information relating to the notes payable
 transactions.
Results from Operations
The table below sets forth a summary of transactions included in the Company's results of
operations that were incurred with affiliates during the three and six months ended
June 30, 2015 and 2014:
                                  Three Months Ended June 30,       Six Months Ended June 30,
 (In thousands)                   2015                 2014         2015                2014
 Total operating expenses,
 CEHL                         $    2,967          $    3,503    $   4,923          $     4,246

 Interest expense, CEHL       $    1,389          $       679   $   2,421          $       856

An affiliate of the Company provides procurement and logistical support services to the
Company?s Nigerian operations. In connection therewith, during the three months ended
June 30, 2015 and 2014, the Company incurred operating costs amounting to
approximately $3.0 million and $3.5 million, respectively, and during the six months ended
June 30, 2015 and 2014, the Company incurred operating costs amounting to
approximately $4.9 million and $4.2 million, respectively.

During the three months ended June 30, 2015 and 2014, the Company incurred interest
expense totaling approximately $1.4 million and $0.7 million, respectively, in relation to
related party note payables. During the six months ended June 30, 2015 and 2014, the
Company and incurred interest expense totaling approximately $2.4 million and $0.9
million, respectively.
9. Commitments and Contingencies
Commitments
In February 2014, a long-term contract was signed for the floating, production, storage, and
offloading vessel (?FPSO?) Armada Perdana, which is the vessel currently connected to the
Company?s producing wells Oyo-8 and Oyo-7 in Nigeria. The contract provides for an initial
term of seven years beginning January 1, 2014, with an automatic extension for an
additional term of two years unless terminated by the Company with prior notice. The
FPSO can process up to 40,000 barrels of liquid per day, with a storage capacity of
approximately one million barrels. In June 2015, the operator of the FPSO agreed to a price
reduction for the operating day rates incurred by the Company for the period from July
2014 to April 2015. This resulted in a $26.0 million reduction in previously accrued
production costs. The remaining annual minimum commitment per the terms of the
agreement is approximately $48.4 million through 2020.

 In December 2014, the Company entered into a short-term drilling contract for the semi-
 submersible drilling rig Sedco Express to complete the horizontal drilling portion of wells
 Oyo-7 and Oyo-8. The Company finished completion operations for well Oyo-8 in March
 2015, and the drilling rig was released in June 2015 upon successful completion of the
 Oyo-7 well.
The Company also has commitments related to four production sharing contracts with the
Government of the Republic of Kenya (the ?Kenya PSCs?), two Petroleum Exploration,
Development & Production Licenses with the Republic of The Gambia (the ?Gambia
Licenses?), and one Petroleum Agreement with the Republic of Ghana. In all cases, the
Company entered into these commitments through a subsidiary. To maintain compliance
and ownership, the Company is required to fulfill certain minimum work obligations and to
make certain payments as stated in each of the Kenya PSCs, the Gambia Licenses, and the
Ghana Petroleum Agreement.
Contingencies
Legal Contingencies
From time to time, the Company may be involved in various legal proceedings and claims in
the ordinary course of business. As of June 30, 2015, and through the filing date of this
report, the Company does not believe the ultimate resolution of such actions or potential
actions of which the Company is currently aware will have a material effect on its
consolidated financial position or results of operations.

 On June 28, 2015, the Company, CPL and an affiliate of CEHL, the Company's majority
 shareholder (collectively, the "Erin Parties") entered into a Settlement Agreement with
 Northern Offshore International Drilling Company Ltd. ("Northern"), pursuant to which
 the parties agreed (i) to settle all disputes and release all claims relating to the daywork
 drilling contract for Northern?s drillship Energy Searcher and (ii) to terminate the
 arbitration proceedings in London. Under the terms of the Settlement Agreement, neither
 the Erin Parties nor Northern paid any amounts to the other to settle the disputes, and
 each party agreed to bear its own legal fees and to share equally the arbitration costs. As
 a result of the settlement, the Company recorded a reduction in accounts payable and
 accrued liabilities of approximately $24.3 million.

Contingency under the Allied Transfer Agreement
As provided for under the Transfer Agreement with Allied, the Company is required to
make the following additional payments upon the occurrence of certain future events: (i)
$25.0 million cash or the equivalent in shares of the Company?s common stock within
fifteen days following the approval of a development plan by the Nigerian Department of
Petroleum Resources with respect to a first new discovery of hydrocarbons in a non-Oyo
field area; and (ii) $25.0 million cash or the equivalent in shares of the Company?s common
stock within fifteen days starting from the commencement of the first hydrocarbon
production in commercial quantities in a non-Oyo field area. The number of shares to be
issued shall be determined by calculating the average closing price of the Company?s
common stock over a period of thirty days, counted back from the first business day
immediately prior to the approval of a development plan by the Nigerian Department of
Petroleum Resources or the date of the first hydrocarbon production in commercial
quantities, as applicable.

10. Stock-Based Compensation
Stock Options
During the six months ended June 30, 2015, the Company granted to certain employees
options to purchase a total of 133,334 shares of common stock with a three-year vesting
period. During the same period, options to purchase 19,510 shares of common stock were
forfeited.
During the six months ended June 30, 2015, the Company issued 5,000 shares of common
stock as a result of the exercise of stock options.
Stock Warrants
During the six months ended June 30, 2015, in connection with the execution of the 2015
Convertible Note, the Company issued to Allied warrants to purchase approximately 2.4
million shares of the Company?s common stock at exercise prices ranging from$2.46 to
$7.85 per share. The warrants are exercisable at any time starting from the date of issuance
and have a five-year term.

  During the six months ended June 30, 2015, 0.2 million previously issued warrants were
  forfeited.
During the six months ended June 30, 2015, the Company issued 0.3 million shares of
common stock as a result of the exercise of stock warrants for cash proceeds totaling
approximately $1.8 million.
Restricted Stock Awards
During the six months ended June 30, 2015, the Company granted officers, directors, and
employees a total of approximately 1.1 million shares of restricted common stock with
vesting periods varying from immediate vesting to 36 months.
In February 2015, the Company granted performance-based restricted stock awards
(PBRSA) to certain officers totaling 0.4 million shares. Each grant will vest if the individuals
remain employed three years from the date of grant and the Company achieves specific
performance objectives at the end of the designated performance period. Up to 50%
additional shares may be awarded if performance objectives are exceeded. None of the
PBRSAs will vest if certain minimum performance goals are not met. The performance
conditions are based on the Company?s total shareholder return over the performance
period compared to an industry peer group of companies. Total estimated compensation
expense is $0.4 million over three years.
11. Segment Information
 The Company?s current operations are based in Nigeria, Kenya, The Gambia, and Ghana.
 Management reviews and evaluates the operations of each geographic segment
 separately. Operations include exploration for and production of hydrocarbons where
 commercial reserves have been found and developed. Revenues and expenditures are
 recognized at the relevant geographical location. The Company evaluates each segment
 based on operating income (loss).


 Segment activity for the three and six months ended June 30, 2015 and 2014, are as
 follows:
(In                                                                                                  Corporate and
thousands)                Nigeria             Kenya              The Gambia           Ghana              Other           Total

Three months
ended June 30,
2015

Revenues              $           ?       $           ?      $            ?       $       ?      $           ?       $        ?
Operating income
(loss)           $             1,211      $        (555 )    $          (291 )    $     (655 )   $       (5,531 )    $    (5,821 )
2014

Revenues              $       14,940      $           ?      $            ?       $       ?      $           ?       $    14,940
Operating income
(loss)           $            (6,403 )    $          (83 )   $          (374 )    $       10     $       (4,421 )    $   (11,271 )
Six months
ended June 30,
2015

Revenues              $           ?       $           ?      $            ?       $       ?      $           ?       $        ?
Operating loss        $   (21,025 )       $       (6,106 )   $          (662 )    $     (949 )   $       (9,110 )    $   (37,852 )
2014

Revenues              $       34,834      $           ?      $            ?       $       ?      $           ?       $    34,834
Operating loss        $   (14,309 )       $       (2,075 )   $          (642 )    $       (6 )   $       (8,922 )    $   (25,954 )


 Total assets by segment as of June 30, 2015, and December 31, 2014, are as follows:
                                                                                                     Corporate and
(In thousands)                  Nigeria             Kenya            The Gambia       Ghana              Other           Total
Total Assets

As of June 30, 2015       $    736,498        $      1,422       $      4,291     $     999      $        2,798      $   746,008
As of December 31,
2014                      $    609,243        $      8,527       $      2,739     $    1,413     $      16,521       $   638,443



ITEM 2. MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Our Business
Erin Energy Corporation, a Delaware corporation, is an independent oil and gas exploration
and production company focused on energy resources in Africa. Our strategy is to acquire
and develop high-potential exploration and production assets in Africa, and to explore and
develop those assets through strategic partnerships with national oil companies,
indigenous local partners, and other independent oil companies. We seek to build and
operate a strategic portfolio of high-impact exploration and near-term development
projects with significant production, reserves, and resources growth potential.
We seek to actively manage investments and on-going operations by limiting capital
exposure through farm-outs at various stages of exploration and development to share
risks and costs. We prioritize on building a strong technical and operational team and place
an emphasis on the utilization of modern oil field technologies that mature our assets,
reduce the cost of our projects and improve the efficiency of our operations.
Our shares are traded on the NYSE MKT and on the Johannesburg Stock Exchange ("JSE")
under the symbol ?ERN.?
Our asset portfolio consists of nine licenses across four countries covering an area of
approximately 43,000 square kilometers (approximately 10 million acres). We own
producing properties offshore Nigeria and conduct exploration activities offshore Nigeria,
onshore and offshore Kenya, offshore The Gambia, and offshore Ghana.
Our operating subsidiaries include CAMAC Petroleum Limited (?CPL?), CAMAC Energy
Kenya Limited, CAMAC Energy Gambia Limited, and CAMAC Energy Ghana Limited.
We conduct certain business transactions with our majority shareholder, CAMAC Energy
Holdings Limited (?CEHL?) and its affiliates. See Note 8 - Related Party Transactions to the
Notes to Unaudited Consolidated Financial Statements for further information.
Our Executive Chairman of the Board of Directors, and Chief Executive Officer, is a director
of each of the above listed related parties. He indirectly owns 27.7% of CEHL, which is the
majority shareholder of the Company. As a result, he may be deemed to have an indirect
material interest in transactions conducted with any of the above related party companies
and their affiliates.
Nigeria
The Company currently owns 100% of the economic interests in Oil Mining Leases 120 and
121 ("OMLs") offshore Nigeria, which includes the currently producing Oyo field.
In December 2014, the Company entered into a contract for the semi-submersible rig Sedco
Express to expedite the Oyo field development campaign, including the horizontal
completion and production tie-in of wells Oyo-8 and Oyo-7.
In March 2015, the Company finished completion operations for well Oyo-8, and
successfully hooked it up to the FPSO. Production commenced in May 2015. In April 2015,
the Company completed plug and abandonment activities for well Oyo-6, a well that was
previously shut-in in 2014. The semi-submersible rig Sedco Express was then mobilized to
the Oyo-7 well location to initiate horizontal completion activities for well Oyo-7. The
Company commenced production from well Oyo-7 in mid-June 2015. Current combined
daily production from both wells is approximately 13,100 BOPD (approximately 11,500
BOPD net to the Company after royalty).
Current plans include the recompletion of previously shut-in well Oyo-5 into a water
injection well, and drilling an additional development well to increase production from the
Oyo field. Additionally, the Company is making plans to drill one or two exploration wells,
depending on capital and rig availability.
Kenya
The Company, through a wholly owned subsidiary, entered into four production sharing
contracts with the Government of the Republic of Kenya, covering onshore exploration
blocks L1B and L16, and offshore exploration blocks L27 and L28 (the ?Kenya PSCs?). Each
block requires specific work commitments to be completed by the end of the respective
license periods. The Company is the operator of all blocks with the Government having the
right to participate up to 20%, either directly or through an appointee, in any area
subsequent to declaration of a commercial discovery. The Company is responsible for all
exploration expenditures.
The initial exploration period for onshore blocks L1B and L16 ended in June 2015. The
Company finished the required 2-D seismic data acquisition in February 2015. The
Company has satisfied all material contractual obligations under the initial exploration
period for onshore blocks L1B and L16 as of June 30, 2015. In accordance with the
provisions of the Kenya PSCs, the Company exercised its right to apply for the First
Additional Exploration Period for both blocks, with specified additional minimum work
obligations, including the acquisition of seismic data and the drilling of one exploratory
well on each block over a two-year period. Following discussions with the Government of
the Republic of Kenya, the Company believes that the First Additional Exploration Period
for both onshore blocks will be granted.
The initial exploration period for offshore blocks L27 and L28 ended on August 8, 2015. As
of the date of this report, the remaining contractual obligation under the initial exploration
period is for the Company to acquire, process, and interpret 3-D seismic data over both
offshore blocks. The Company plans to pursue completion of the work program, and is also
considering the possibility of farming-out a portion of its rights to both offshore blocks to
potential partners. Accordingly, the Company has applied for a two-year extension of the
Initial Exploration Period for both blocks in order to bring in potential partners and
complete the remaining work obligations. Following discussions with the Government of
the Republic of Kenya, the Company believes that the extension will be granted to complete
the work program. Upon completion of the work program, the Company has the right to
apply for up to two additional two-year exploration periods, with specified additional
minimum work obligations, including the acquisition of seismic data and the drilling of one
exploratory well on each block during each additional period.
The Gambia
The Company, through a wholly owned subsidiary, entered into two Petroleum
Exploration, Development & Production Licenses with The Republic of The Gambia, for
offshore exploration blocks A2 and A5 (the ?Gambia Licenses?). Each block requires
specific work commitments to be completed by the end of the respective license periods.
For both blocks, the Company is the operator, with the Gambian National Petroleum
Company (?GNPCo?) having the right to elect to participate up to a 15% interest, following
approval of a development and production plan. The Company is responsible for all
expenditures prior to such approval even if the GNPCo elects to participate.
The term of the initial exploration period for both blocks A2 and A5 was extended by two
years through December 2018 following an amendment agreement (the "Amendment")
entered into with The Republic of the Gambia in May 2015. As of June 30, 2015, the
remaining contractual obligations, pursuant to the Amendment, under the Gambia Licenses
for both blocks is for the Company to i) acquire, process and interpret 750 square
kilometers of 3-D seismic data and ii) drill one exploration well on either block A2 or A5
and evaluate the drilling results. As consideration for the Amendment, the Company agreed
to i) pay a $1.0 million extension fee, ii) provide a full well guarantee on either block at
such time that the Company enters into a farm-in agreement with a partner, and iii) pay the
annual contractual Training and Resources Expenses into a Government of Gambia bank
account in The Gambia. The Company intends to pursue completion of the work program,
and is also considering the possibility of farming-out a portion of its rights to both blocks to
potential partners.
In mid-July 2015, the Company commenced the shooting of a 3-D seismic survey off the
coast of The Gambia. The survey is expected to take approximately 50 days to complete and
will cover approximately 1,500 square kilometers on the Company's A2 and A5 blocks.
Ghana
The Company, through an indirect 50%-owned subsidiary, entered into a Petroleum
Agreement with the Republic of Ghana (the ?Petroleum Agreement?) relating to the
Expanded Shallow Water Tano block offshore Ghana. The Contracting Parties, which hold
90% of the participating interest in the block, are CAMAC Energy Ghana Limited as the
operator, GNPC Exploration and Production Company Limited, and Base Energy
(collectively the ?Contracting Parties?), holding 60%, 25%, and 15% share of the
participating interest of the Contracting Parties, respectively. Ghana National Petroleum
Company initially has a 10% carried interest through the exploration phase, and will have
the option to acquire an additional 10% paying interest following a declaration of
commerciality. The Company owns 50% of its CAMAC Energy Ghana Limited subsidiary.
The remaining 50% interest is owned by an entity related to the Company?s majority
shareholder.
In January 2015, the Petroleum Agreement became effective, following the signing of a Joint
Operating Agreement between the Contracting Parties. The initial exploration period ends
in January 2017. The remaining contractual obligations under the initial exploration period
are for the Company to i) complete the economic and commercial evaluation of three
previously discovered fields within nine months of the effective date of the Petroleum
Agreement, ii) reprocess existing 2-D and 3-D seismic data and iii) drill one exploration
well.
Work is ongoing to establish the economic viability of the previously discovered fields.
Results of Operations
 The following discussion pertains to the Company?s results of operations, financial
 condition, liquidity and capital resources and should be read together with our unaudited
 consolidated financial statements and the notes thereto contained in this report, and our
 audited consolidated financial statements and notes thereto contained in our Annual
 Report on Form 10-K for the year ended December 31, 2014, filed on March 16, 2015 with
 the SEC.
Three months ended June 30, 2015, compared to three months ended June 30, 2014
Revenues
Revenue is recognized when a lifting (sale) occurs. Crude oil revenues for the three months
ended June 30, 2015, were nil, as compared to $14.9 million for the same period in 2014.
The two previously producing wells Oyo-5 and Oyo-6 have been shut-in since September
2014 as part of the Oyo field redevelopment campaign. Production resumed in the second
quarter of 2015 with the horizontal completion of wells Oyo-7 and Oyo-8. During the three
months ended June 30, 2015, the Company sold no oil. For the three months ended June 30,
2014, the Company sold approximately 135,000 net barrels of oil at an average price of
$110.40/Bbl.
During the three months ended June 30, 2015 and 2014, the average net daily production
from the Oyo field, over the number of days production occurred was approximately 6,700
and 1,600 BOPD, respectively.
Operating Costs and Expenses
Production costs for the three months ended June 30, 2015, were a net credit of $5.6
million, as compared to expenditures of $15.5 million for the same period in 2014. In June
2015, the operator of the FPSO agreed to a price reduction for the operating day rates
incurred by the Company for the period from July 2014 to April 2015. This resulted in a
$26.0 million reduction in production costs recognized in June 2015, partially offset by
higher charges recorded for the FPSO as a result of certain scheduled repairs.
During the three months ended June 30, 2015, the Company spent $0.6 million to repair a
control module associated with its well Oyo-4 that is currently operating as a gas injection
well. The expenditure was recorded as a workover expense. There were no workover
expenses incurred for the three months ended June 30, 2014.
During the three months ended June 30, 2015, the Company incurred $1.5 million of
exploration expenses, including $0.5 million spent in Kenya, $0.3 million spent in The
Gambia, and $0.7 million spent in Ghana for exploration activities. During the three months
ended June 30, 2014, the Company incurred $0.4 million of exploration expenses, which
were primarily spent in The Gambia.
Depreciation, depletion and amortization (?DD&A?) expenses, including asset retirement
obligation accretion, for the three months ended June 30, 2015, were $0.4 million, as
compared to $6.0 million for the same period in 2014. In the three months ended June 30,
2015, oilfield depletion expenses were nil, compared to $5.4 million for the same period in
2014 because there were no oil sales in 2015. The average depletion rate for the three
months ended June 30, 2014, was $44.23/Bbl.
In April 2015, the Company completed P&A activities for well Oyo-6 that was previously
shut-in. Actual P&A expenditures exceeded estimated P&A liabilities by $3.5 million.
Accordingly, the Company recognized a $3.5 million loss on settlement of its asset
retirement obligations during the three months ended June 30, 2015. No P&A activity
occurred during the same period in 2014.
General and administrative expenses for the three months ended June 30, 2015 were $5.4
million, as compared to $4.3 million in 2014. The increase in 2015 is primarily due to
certain severance costs recognized in May 2015.
Other Income (Expense)

 Other expense for the three months ended June 30, 2015 was $3.7 million, consisting of
 $4.2 million in interest expense on borrowings, net of $1.0 million capitalized interest,
 partially offset by $0.6 million gain on foreign currency transactions. Other expense for
 the same period in 2014 was $0.7 million, primarily for interest accrued on the related
 party note payable, net of $0.2 million capitalized interest.
Income Taxes
Income taxes were nil for each of the three months ended June 30, 2015 and 2014. The
Company did not have any taxable income from its oil and gas activities in Nigeria in these
respective periods.
Six months ended June 30, 2015, compared to six months ended June 30, 2014
Revenues
Revenue is recognized when a lifting (sale) occurs. Crude oil revenues for the six months
ended June 30, 2015, were nil, as compared to $34.8 million for the same period in 2014.
The two previously producing wells Oyo-5 and Oyo-6 have been shut-in since September
2014 as part of the Oyo field redevelopment campaign. Production resumed in the second
quarter of 2015 with the horizontal completion of wells Oyo-7 and Oyo-8. The Company
had no oil sales during the six months ended June 30, 2015.
For the six months ended June 30, 2014, the Company sold approximately 397,000 net
barrels of oil at an average price of $105.80/Bbl.
During the six months ended June 30, 2015 and 2014, the average net daily production
from the Oyo field, over the number of days that production occurred, was approximately
6,700 and 1,600 BOPD, respectively.
Operating Costs and Expenses
Production costs for the six months ended June 30, 2015, were $15.7 million, as compared
to $38.4 million for the same period in 2014. In June 2015, the operator of the FPSO agreed
to a price reduction for the operating day rates incurred by the Company for the period
from July 2014 to April 2015. This resulted in a $26.0 million reduction in production costs
recognized in June 2015, partially offset by higher charges for the FPSO in relation to
certain scheduled repairs.
During the six months ended June 30, 2015, the Company spent $0.6 million to repair a
control module associated with its well Oyo-4 that is currently operating as a gas injection
well. The expenditure was recorded as a workover expense. There were no workover
expenses incurred for the six months ended June 30, 2014.
During the six months ended June 30, 2015, the Company incurred $8.0 million of
exploration expenses, including $5.4 million spent onshore Kenya primarily for the 2-D
seismic acquisition and interpretation. In addition, $0.7 million was spent offshore Kenya,
$0.7 million in The Gambia, $0.3 million in Nigeria, and $0.9 million in Ghana for
exploration activities. During the six months ended June 30, 2014, the Company incurred
$2.7 million of exploration expenses, including $0.6 million spent onshore Kenya, $1.5
million spent offshore Kenya, and $0.6 million spent in The Gambia.
DD&A expenses, including asset retirement obligation accretion, for the six months ended
June 30, 2015, were $1.1 million, as compared to $11.0 million for the same period in 2014.
In the six months ended June 30, 2015, oilfield depletion expenses were nil, compared to
$9.8 million for the comparable period in 2014 because there were no oil sales in 2015. The
average depletion rate for the six months ended June 30, 2014, was $34.49/Bbl.
In April 2015, the Company completed P&A activities for well Oyo-6 that was previously
shut-in. Actual P&A expenditures exceeded estimated P&A liabilities by $3.5 million.
Accordingly, the Company recognized a $3.5 million loss on settlement of its asset
retirement obligations during the six months ended June 30, 2015. No P&A activity
occurred during the same period in 2014.
General and administrative expenses for the six months ended June 30, 2015 were $8.9
million, as compared to $8.8 million in 2014. Higher severance costs recorded in the six
months ended June 30, 2015 were partially offset by lower legal and professional services
costs incurred in 2015 as compared to 2014 in conjunction with the 2014 Allied
Transaction.
Other Income (Expense)
Other expense for the six months ended June 30, 2015, was $4.8 million, consisting of $6.8
million in interest expense on borrowings, net of $2.2 million capitalized interest, partially
offset by a $2.0 million gain on foreign currency transactions. Other expense for the same
period in 2014 was $0.8 million, primarily for interest accrued on the related party note
payable, net of $0.2 million capitalized interest,
Income Taxes
Income taxes were nil for each of the six months ended June 30, 2015 and 2014. The
Company did not have any taxable income from its oil and gas activities in Nigeria in these
respective periods.
Headline Earnings
In addition to the Company?s primary listing on the New York Stock Exchange, the
Company?s common stock is also traded on the JSE. The JSE requires for the Company to file
certain documents that it files with the SEC. The JSE requires that we calculate Headline
Earnings Per Share (?HEPS?) which, per the SEC, is considered a non-GAAP measurement.

 As defined in the Circular 3/2009 of The South African Institute of Chartered
 Accountants, headline earnings is an additional earnings number that excludes certain
 separately identifiable re-measurements, net of related tax, and related non-controlling
 interest.
 The number of shares used to calculate basic and diluted HEPS is the same as basic and
 diluted EPS. In the three and six months ended June 30, 2015 and 2014, there were no
 separate identifiable re-measurements required and headline earnings was the same as
 net loss per share as disclosed on the unaudited consolidated statements of operations.
 Therefore, HEPS for the three months ended June 30, 2015 and 2014, were $(0.04) and
 $(0.06), respectively, and for the six months ended June 30, 2015 and 2014, were $(0.20)
 and $(0.17), respectively.
Liquidity
Cash Flows from Operating Activities
Cash used in operating activities increased by $2.6 million because of $35.0 million positive
changes in working capital, primarily from vendor financing, offset the $15.9 million higher
losses from operations, the $16.4 million paid in relation to the P&A activities for well Oyo-
6, as well as the $5.2 million lower non-cash adjustments to net income.
Cash Flows from Investing Activities
Cash used in investing activities during the six months ended June 30, 2015, consists of a
$56.7 million addition to property, plant and equipment primarily for the ongoing Oyo field
redevelopment campaign in the OMLs. The cash used in investing activities for the six
months ended June 30, 2014 included $170.0 million paid to Allied as partial consideration
for the acquisition of the remaining economic interest in the OMLs and $22.2 million
addition to property, plant, and equipment.
Cash Flows from Financing Activities
Net cash provided by financing activities of $60.0 million during the six months ended
June 30, 2015, consisted of $1.9 million proceeds from the issuance of common stock
arising from warrant and option exercises, $44.0 million borrowings under the 2015
Convertible Note, $13.8 million borrowings under the Promissory Note, and $0.4 million
funding received from a related party owning a non-controlling interest in the Company's
Ghana subsidiary.
Net cash provided by financing activities for the six months ended June 30, 2014, consisted
of $270.0 million investment from the sale of equity, $0.4 million proceeds from the
issuance of stock pursuant to employee stock option exercises, and $0.7 million additional
borrowings under the Promissory Note, partially offset by a $13.9 million adjustment
pursuant to the acquisition of certain assets from Allied.
Capital Resources
The Company?s primary cash requirements are for capital expenditures for the
redevelopment of the Oyo field in Nigeria, operating expenditures, exploration activities in
our unevaluated leaseholds, working capital needs, and interest and principal payments
under current indebtedness.
Crude oil production is a primary source of operating cash for the Company. The Company
commenced production from the Oyo-8 well in early May 2015 and from the Oyo-7 well in
mid-June 2015. After a period of retooling and optimization, the current combined
production rate from the two wells is approximately 13,100 barrels of oil per day ("BOPD")
(approximately 11,500
BOPD net to the Company after royalty). In July 2015, the Company lifted and sold
approximately 312,000 Bbls of crude oil (274,000 Bbls net to the Company) at a price of
$55.78/Bbls. Net proceeds to the Company were approximately $15.3 million. Further, the
Company expects to sell approximately 650,000 Bbls of crude oil in August 2015 (572,000
Bbls net to the Company). If actual production rates decline substantially below anticipated
rates, or if oil prices decline significantly from current levels, the Company may need to
seek additional sources of capital.
In March 2015, the Company entered into a borrowing facility with Allied for a Convertible
Note (the "2015 Convertible Note"), separate from the existing $25.0 million Promissory
Note and the $50.0 million Convertible Subordinated Note, allowing the Company to
borrow up to $50.0 million for general corporate purposes. As of June 30, 2015, the
Company owed $44.0 million under the 2015 Convertible Note. Subsequent to June 30,
2015, the Company borrowed additional funds totaling $4.0 million under the note. See
Note 7 - Debt to the Notes to Unaudited Consolidated Financial Statements for additional
information.
In May 2015, the Company executed a term sheet for a commodity-based Full Recourse
Prepayment Facility (the ?Prepayment Facility?) with Glencore Energy UK Ltd. The
Prepayment Facility, which is subject to completion of legal documentation and certain
conditions precedent, would provide proceeds in two tranches. The initial tranche, a term
prepayment facility, would be available to the Company in drawdowns totaling up to $50.0
million towards the Oyo field redevelopment program, and would depend on the
Company?s ability to meet certain production targets. The second tranche consists of an
inventory revolving facility up to a total of $100.0 million. The Company expects the
Prepayment Facility to be finalized during the third quarter of 2015.
In July 2015, the Company received $13.0 million as an advance under a stand-alone sales
spot contract with Glencore Energy UK Ltd. (the ?July Advance?). Interest accrued on the
July Advance at the rate of LIBOR plus 6.5%. Repayment of the July Advance was made
from the July crude oil lifting.
In August 2015, the Company received $26.5 million as an advance under a stand-alone
sales spot contract with Glencore Energy UK Ltd. (the ?August Advance?). Interest accrues
on the August Advance at the rate of LIBOR plus 6.5%. Repayment of the August Advance
will be made from the August crude oil lifting.
The Company?s majority shareholder has formally committed to provide the Company with
additional funding, the form of which would be determined at the time of funding, sufficient
to maintain the Company?s operations and to allow the Company to meet its current and
future obligations as they become due for one year from March 12, 2015, the date of said
commitment.
Although there are no assurances that the Company?s plans will be realized, management
believes that the Company will have sufficient capital resources to meet projected cash
flow requirements for the next twelve months from the date of filing this report.
Off-Balance Sheet Arrangements
From time-to-time, we may enter into arrangements that can give rise to off-balance sheet
obligations. As of June 30, 2015, material off-balance sheet obligations include operating
leases for the FPSO and certain employment contracts. Other than the material off-balance
sheet arrangements discussed above, no other arrangements are likely to have a current or
future material effect on our financial condition, results from operations, liquidity, capital
expenditures or capital resources.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes ?forward-looking statements? within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act. All statements, other than statements of historical fact, in this report,
including, without limitation, statements regarding our future financial position, business
strategy, budgets, projected revenues, projected costs and plans and objectives of
management for future operations, are, or may be deemed to be, forward-looking
statements. Such forward-looking statements involve assumptions, known and unknown
risks, uncertainties and other factors, which may cause the actual results, performance or
achievements of the Company, to be materially different from historical earnings and those
presently anticipated or projected or any future results, performance or achievements
expressed or implied by such forward-looking statements contained in this report.
In addition, forward-looking statements generally can be identified by the use of forward-
looking terminology such as ?anticipate,? ?believe,? ?continue,? ?could,? ?estimate,? ?expect,?
?forecast,? ?goal,? ?intend,? ?may,? ?objective,? ?plan,? ?potential,? ?predict,? ?project,?
?should,? ?will,? ?will likely,? or similar expressions. Although we believe that the
expectations reflected in such forward-looking statements are reasonable, we can give no
assurance that such expectations will prove to have been correct. We caution you not to
place undue reliance on any such forward-looking statements, which speak only as of the
date made.
Important factors that could affect our financial performance and that could cause actual
results for future periods to differ materially from our expectations include, but are not
limited to:
the supply, demand and market prices of oil and natural gas;


our current and future indebtedness;

our ability to raise capital to fund our current and future operations;

our ability to develop oil and gas reserves;

competition from other companies in the energy market;

political instability and foreign government regulations over
international operations;

our lack of diversification of production and reserves;
compliance and enforcement of environmental laws and regulations;

our ability to achieve profitability;

our dependency on third parties to enable us to produce and deliver oil
and gas; and

other factors disclosed under Item 1. Description of Business, Item 1A. Risk Factors, Item 2.
Properties, Item 7. Management?s Discussion and Analysis of Financial Condition and Results
of Operations, Item 7A. Quantitative and Qualitative Disclosures About Market Risk of our
Annual Report on Form 10-K for the year ended December 31, 2014, and elsewhere in
this report.

We have based our forward-looking statements on our management?s beliefs and
assumptions based on information available to our management at the time the statements
are made. We caution you that assumptions, beliefs, expectations, intentions and
projections about future events may and often do vary materially from actual results.
Therefore, we cannot assure you that actual results will not differ materially from those
expressed or implied by our forward-looking statements.
For a detailed description of these and other factors that could cause actual results to differ
materially from those expressed in any forward-looking statement, please see ?Risk
Factors? in Item 1A of Part II of this report and in our Annual Report on Form 10-K for the
year ended December 31, 2014. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated. All subsequent written and oral forward-looking
statements attributable to us or persons acting on our behalf are expressly qualified in
their entirety by reference to these risks and uncertainties. You should not place undue
reliance on our forward-looking statements. Each forward-looking statement speaks only
as of the date of the particular statement, and, except as required by law, we undertake no
duty to update or revise any forward-looking statement.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company may be exposed to certain market risks related to changes in foreign
currency exchange, interest rates, and commodity prices.
Foreign Currency Exchange Risk

  Our results of operations and financial conditions are affected by currency exchange
  rates. While oil sales are denominated in U.S. dollars, portions of our capital and
  operating costs in Nigeria are denominated in Naira, the Nigerian local currency.
  Similarly, portions of our exploration costs in Kenya, The Gambia, and Ghana are
  denominated in each country?s respective local currency. Historically, the exchange rate
  between the U.S. dollar and the local currencies in the countries in which we operate has
  fluctuated widely in response to international political conditions, general economic
  conditions, and other factors beyond our control.
 The weighted average exchange rate between the U.S. dollar and the Nigerian Naira was
 196.45 Naira per each U.S. dollar for the six months ended June 30, 2015. For the six
 months ended June 30, 2015, a 10% fluctuation in the weighted average exchange rate
 between the U.S. dollar and the Nigerian Naira would have had an approximate $1.1
 million impact on our capital and operating costs in Nigeria.

 To date, we have not engaged in hedging activities to hedge our foreign currency
 exposure in our foreign operations. In the future, we may enter into hedging instruments
 to manage our foreign currency exchange risk or continue to be subject to exchange rate
 risk.
Commodity Price Risk

 As an independent oil producer, our revenue, other income and profitability, reserve
 values, access to capital and future rate of growth are substantially dependent upon the
 prevailing prices of crude oil. Prevailing prices for such commodities are subject to wide
 fluctuations in response to relatively minor changes in supply and demand and a variety
 of additional factors beyond our control. Prices received for oil production have been
 volatile and unpredictable, and such volatility is expected to continue.

 Historically, realized commodity prices received for our crude oil sales have been tied to
 the Brent oil prices. Prices received have been volatile and unpredictable. As there were
 no crude oil sales made during the six months ended June 30, 2015, we were not affected
 by price fluctuations.

 We do not currently engage in hedging activities to hedge our exposure to commodity
 price risks. In the future, we may enter into hedging instruments to manage our exposure
 to fluctuations in commodity prices.
Interest Rate Risk
We are exposed to changes in interest rates, primarily from possible fluctuations in the
London Interbank Borrowing Rate (?LIBOR?). The interest rates on our debt obligations are
stated at floating rates tied to the LIBOR. Currently, we do not use interest rate derivative
instruments to manage exposure to interest rate changes. For the six months ended
June 30, 2015, the weighted average interest rate on our variable rate debt was 15.9%.
Assuming our current level of borrowings, a 100 basis point increase in the interest rates
we pay under our various debt facilities would result in an increase of our interest expense
by $2.2 million over a twelve month period.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure
that information required to be disclosed in the Company?s reports under the Exchange Act
is recorded, processed, summarized, and reported within the time periods specified in the
SEC?s rules and forms, and that such information is accumulated and communicated to
management, including its Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure.
  Management of the Company, with the participation of its Chief Executive Officer and
  Chief Financial Officer, evaluated the effectiveness of the Company?s disclosure controls
  and procedures as of June 30, 2015. Based on their evaluation, as of the end of the period
  covered by this Form 10-Q, the Company?s Chief Executive Officer and Chief Financial
  Officer concluded that the Company?s disclosure controls and procedures were effective.
Changes in Internal Control Over Financial Reporting
There have not been any changes in our internal control over financial reporting during the
period covered by this report that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The disclosures required in this Item 1 are included in Note 9 - Commitments and
Contingencies in the Notes to the Unaudited Consolidated Financial Statements included in
Part I, Financial Information, Item 1, Financial Statements and incorporated herein by
reference.
Item 1A. Risk Factors
There have not been any material changes to the risk factors previously disclosed in Part I,
Item 1A of our Annual Report on Form 10-K filed with the SEC on March 16, 2015 for the
fiscal year ended December 31, 2014.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
In September 2014, the Company entered into a consulting agreement (the? Agreement?)
with a consultant, pursuant to which the consultant has agreed to represent the Company
for a term of one-year in investors? communications and public relations with existing and
prospective shareholders, brokers, dealers and other investment professionals with
respect to the Company?s current and proposed activities, and to consult with the
Company?s management concerning such activities.

  As partial consideration under the Agreement, as amended in March 2015, the Company
  agreed to issue an aggregate of 52,083 shares of the Company?s common stock to the
  consultant. The Company issued the above shares in reliance on an exemption from
  registration of the shares provided by Section 4(a)(2) of the Securities Act of 1933, as
  amended (the ?Securities Act?), as a transaction by an issuer not involving any public
  offering.
In March 2015, the Company entered into a borrowing facility with Allied for the 2015
Convertible Note, allowing the Company to borrow up to $50.0 million for general
corporate purposes. As of June 30, 2015, the Company has drawn $44.0 million under the
note and issued to Allied warrants to purchase approximately 2.4 million shares of the
Company?s common stock at prices ranging from $2.46 to $7.85 per share. For further
information, see Note 7 - Debt to the Unaudited Consolidated Financial Statements.
Item 6. Exhibits
The following exhibits are filed with this report:
 Exhibit
 Number                                                        Description
3.1        Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit
           3.1 to the Company?s Form 10-SB filed on August 16, 2007).
3.2        Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated
           herein by reference to Exhibit 3.1 to the Company?s Current Report on Form 8-K filed on April 13, 2010).
3.3
           Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated
           herein by reference to Exhibit 3.1 to the Company?s Current Report on Form 8-K filed on February 19, 2014).

3.4        Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated
           herein by reference to Exhibit 3.1 to the Company?s Current Report on Form 8-K filed on April 23, 2015).
3.5        Amended and Restated Bylaws of the Company as of April 11, 2011 (incorporated by reference to Exhibit 3.1 of our
           Quarterly Report on Form 10-Q filed on May 3, 2011).
10.1
           Offer of Employment as Senior Vice President and Chief Financial Officer, dated April 28, 2015, by and between the
           Company and Christopher J. Hearne (incorporated by reference to Exhibit 10.2 on Form 8-K filed on May 8, 2015).

10.2       Separation Agreement and General Release of Claims, dated May 6, 2015, by and between the Company and Earl W.
           McNiel (incorporated by reference to Exhibit 10.1 on Form 8-K filed on May 8, 2015).
10.3       Block A2 License Amendment, dated May 25, 2015, by and between the CAMAC Energy Gambia Limited and The
           Republic of the Gambia (incorporated by reference to Exhibit 10.1 on Form 8-K filed on May 29, 2015).
10.4       Block A5 License Amendment, dated May 25, 2015, by and between the CAMAC Energy Gambia Limited and The
           Republic of the Gambia (incorporated by reference to Exhibit 10.2 on Form 8-K filed on May 29, 2015).
31.1       Certification of Chief Executive Officer Pursuant to 15 U.S.C. ? 7241, as Adopted Pursuant to Section 302 of the
           Sarbanes-Oxley Act of 2002.
31.2       Certification of Principal Financial Officer Pursuant to 15 U.S.C. ? 7241, as Adopted Pursuant to Section 302 of the
           Sarbanes-Oxley Act of 2002.
32.1       Certification of Chief Executive Officer Pursuant to 18 U.S.C. ? 1350, as Adopted Pursuant to Section 906 of the
           Sarbanes-Oxley Act of 2002.
32.2       Certification of Principal Financial Officer Pursuant to 18 U.S.C. ? 1350, as Adopted Pursuant to Section 906 of the
           Sarbanes-Oxley Act of 2002.
101. INS XBRL Instance Document.
101. SCH XBRL Schema Document.
101. CAL XBRL Calculation Linkbase Document.
101. DEF XBRL Taxonomy Extension Definition Linkbase Document
101. LAB XBRL Label Linkbase Document.
101. PRE XBRL Presentation Linkbase Document.



SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
  duly caused this report to be signed on its behalf by the undersigned, thereunto duly
  authorized.


Erin Energy Corporation
           Date: August 10, 2015


      /s/ Christopher J. Hearne
      Christopher J. Hearne
      Senior Vice President and Chief Financial Officer
      (Principal Financial Officer)


     Exhibit 31.1

                                    CERTIFICATION PURSUANT TO
                                           15 U.S.C. ? 7241
                                     AS ADOPTED PURSUANT TO
                        SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
1. I have reviewed this Quarterly Report on Form 10-Q of Erin Energy
   Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
   omit to state a material fact necessary to make the statements made, in light of the
   circumstances under which such statements were made, not misleading with respect to the
   period covered by this report;
4. The registrant?s other certifying officer and I are responsible for establishing and maintaining
   disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-
   15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
   and 15d-15(f)) for the registrant and have:
      (a) Designed such disclosure controls and procedures, or caused such disclosure controls
            and procedures to be designed under our supervision, to ensure that material
            information relating to the registrant, including its consolidated subsidiaries, is made
            known to us by others within those entities, particularly during the period in which
            this report is being prepared;
      (b) Designed such internal control over financial reporting, or caused such internal control over
            financial reporting to be designed under our supervision, to provide reasonable assurance
            regarding the reliability of financial reporting and the preparation of the financial statements
            for external purposes in accordance with generally accepted accounting principles;

     (c)     Evaluated the effectiveness of the registrant?s disclosure controls and procedures and
             presented in this report our conclusions about the effectiveness of the disclosure controls and
             procedures, as of the end of the period covered by this report based on such evaluation; and
     (d)     Disclosed in this report any change in the registrant?s internal control over financial reporting
             that occurred during the registrant?s most recent fiscal quarter (the registrant?s fourth fiscal
             quarter in the case of an annual report) that has materially affected, or is reasonably likely to
             materially affect, the registrant?s internal control over financial reporting; and

5. The registrant?s other certifying officer and I have disclosed, based on our most recent evaluation of
   internal control over financial reporting, to the registrant?s auditors and the audit committee of the
   registrant?s Board of Directors:
    (a)    All significant deficiencies and material weaknesses in the design or operation of internal
           control over financial reporting which are reasonably likely to adversely affect the registrant?s
           ability to record, process, summarize, and report financial information; and
    (b)    Any fraud, whether or not material, that involves management or other employees who have a
           significant role in the registrant?s internal control over financial reporting.
Date: August 10, 2015

/s/ Dr. Kase Lukman Lawal

 Chief Executive Officer
(Principal Executive Officer)


     Exhibit 31.2



                                 CERTIFICATION PURSUANT TO
                                       15 U.S.C. ? 7241
                                  AS ADOPTED PURSUANT TO
                       SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Christopher J. Hearne,
   certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Erin
   Energy Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact
   or omit to state a material fact necessary to make the statements made, in light of the
   circumstances under which such statements were made, not misleading with respect to the
   period covered by this report;
4. The registrant?s other certifying officer and I are responsible for establishing and maintaining
   disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-
   15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-
   15(f) and 15d-15(f)) for the registrant and have:
      (a) Designed such disclosure controls and procedures, or caused such disclosure controls
          and procedures to be designed under our supervision, to ensure that material
          information relating to the registrant, including its consolidated subsidiaries, is made
          known to us by others within those entities, particularly during the period in which
          this report is being prepared;
      (b) Designed such internal control over financial reporting, or caused such internal control
          over financial reporting to be designed under our supervision, to provide reasonable
          assurance regarding the reliability of financial reporting and the preparation of the
          financial statements for external purposes in accordance with generally accepted
          accounting principles;
       (c) Evaluated the effectiveness of the registrant?s disclosure controls and procedures and
            presented in this report our conclusions about the effectiveness of the disclosure
            controls and procedures, as of the end of the period covered by this report based on
            such evaluation; and
       (d) Disclosed in this report any change in the registrant?s internal control over financial
            reporting that occurred during the registrant?s most recent fiscal quarter (the
            registrant?s fourth fiscal quarter in the case of an annual report) that has materially
            affected, or is reasonably likely to materially affect, the registrant?s internal control
            over financial reporting; and
  5. The registrant?s other certifying officer and I have disclosed, based on our most recent
     evaluation of internal control over financial reporting, to the registrant?s auditors and the
     audit committee of the registrant?s Board of Directors:

       (b) Any fraud, whether or not material, that involves management or other employees
           who have a significant role in the registrant?s internal control over financial reporting.

Date: August 10, 2015

 Christopher J. Hearne
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)


      Exhibit 32.1



                                    CERTIFICATION PURSUANT TO
                                          18 U.S.C. ? 1350
                                     AS ADOPTED PURSUANT TO
                          SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

         The undersigned hereby certifies, in his capacity as the Principal Executive Officer of
         Erin Energy Corporation (the ?Corporation?), that the Quarterly Report of the
         Corporation on Form 10-Q for the quarter ended June 30, 2015, fully complies with the
         requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
         amended, and that the information contained in such report fairly presents, in all
         material respects, the financial condition and the results of operations of the
         Corporation.

Date: August 10, 2015
Dr. Kase Lukman Lawal
Chief Executive Officer
(Principal Executive Officer)

      Exhibit 32.2
                           CERTIFICATION PURSUANT TO
                                 18 U.S.C. ? 1350
                            AS ADOPTED PURSUANT TO
                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in his capacity as the Principal Financial Officer of Erin
Energy Corporation (the ?Corporation?), that the Quarterly Report of the Corporation on
Form 10-Q for the quarter ended June 30, 2015, fully complies with the requirements of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the
information contained in such report fairly presents, in all material respects, the
financial condition and the results of operations of the Corporation.
Date: August 10, 2015

Christopher J. Hearne
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)




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

12 August 2015

Date: 12/08/2015 10:48:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             . The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.


                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.