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ERIN ENERGY CORPORATION - Erin Energy Ann Full Year & Fourth Quarter 2016 Results.Provides Operational Update on West & East Africa Operations

Release Date: 16/03/2017 13:00:00      Code(s): ERN     
Erin Energy Corporation
(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 Full Year and Fourth Quarter 2016 Results

Provides Operational Update on its West and East Africa Operations

HOUSTON, March 16, 2017 ? Erin Energy Corporation (Erin Energy or the Company) (NYSE MKT:ERN)
(JSE:ERN) announced today financial and operational results for the year ended December 31, 2016.
The Company plans to file its Annual Report on Form 10-K for the year ended December 31, 2016 with
the Securities and Exchange Commission after close of market today.

2016 Highlights:

Crude sales volumes of more than 1.7 million net barrels of oil, an 18% increase over 2015;

$77.8 million in revenue, a 14% increase over 2015;

Total production of approximately 1.8 million net barrels of oil.

?During 2016, we produced approximately 1.8 million net barrels of oil and generated revenues of more
than $77 million,? said Jean-Michel Malek, Interim Chief Executive Officer. ?2016 was a challenging year
for our industry, but Erin Energy?s perseverance allowed for good progress in our cost-cutting and
balance sheet restructuring efforts.?

Malek continued, ?Our finance team worked diligently to raise the capital necessary for this year?s drilling
and looking ahead, 2017 promises to be an exciting year as we kick off our drilling campaign, increase
Oyo production, and look to drill some of west Africa?s most prospective exploration wells.?

Operational Update

Average net daily production for 2016 was approximately 4,800 bopd compared to approximately 4,300
bopd for 2015. For the fourth quarter 2016, net daily production was approximately 5,800 bopd compared
with 2,500 for the comparative period in 2015. The average price received for 2016 was $45.45 per barrel
compared to $47.24 in 2015.

Production volumes for the year were approximately 1.8 million net barrels of oil compared to
approximately 1.6 million net barrels in 2015. The Company?s crude oil inventory was approximately $9.4
million at December 31, 2016.

Erin Energy recently announced it has entered into a drilling services contract with Pacific Drilling and
secured a sixth generation drillship, the Pacific Bora. The company will drill the Oyo-9 (Oyo-9) well first.
The Oyo-9 is a development well, which will be drilled on the Oyo field and will be tied in to the field?s
current production facility. The well is expected to add an additional 6,000 to 7,000 barrels of oil per day
from the field.

The Company has the option to drill up to two additional wells with the Pacific Bora. Subject to capital
availability, the Company will use the Pacific Bora to drill one to two of its Miocene exploration prospects.
Erin Energy has four drill-ready prospects, which target P50 Prospective Resources of 2.4 billion barrels
of oil. The G Prospect would be the first Miocene exploration well drilled on the Company?s 120 block.

In The Gambia, the Company is currently interpreting the 3-D seismic data processed by an outside
contractor. The Company intends to pursue completion of the work program, and is also in talks with a
potential farm-in partner for a portion of its rights to both offshore blocks.
In Kenya, the Company continues to evaluate the prospectivity of identified leads on its onshore blocks
and is currently designing an additional, targeted 2-D seismic acquisition on the blocks. Erin Energy has
stated that the most prospective of its Kenya assets are its onshore blocks and has focused the majority
of its work on these blocks. The Company also announced it would not seek an additional extension of its
offshore L-27 and L-28 blocks due to the high costs and risks associated with frontier exploration in the
current price and market environments. Erin Energy stated that relinquishment of the two blocks was in
the Company?s long-term best interest.

In Ghana, Erin Energy continues to conduct geotechnical subsurface studies of existing 3-D seismic data
to further high-grade its prospect inventory on the Expanded Shallow Water Tano block. The Company is
also planning a new 3-D marine seismic acquisition survey. The Company expects to issue a formal
invitation to tender to marine seismic vendors in the second half of 2017. Actual field operations will take
place after the resolution of the Ghana-Cote d?Ivoire maritime border dispute arbitration later this year.

The Company?s year-end 2016 SEC proved oil reserves were 9.3 million barrels (MMbbls). The
Company?s reported reserves are prepared by DeGolyer and MacNaughton.

Financial Summary

Full year 2016 revenues were $77.8 million, up approximately 14% from $68.4 million in 2015. Fourth
quarter 2016 revenues were $21.1 million compared to $39.8 for the same period in 2015.

The Company had a non-cash impairment charge of $0.6 million, mostly due to the write-off of the
carrying value of its offshore Kenya leases and reported a net loss of $142.4 million or $0.67 per share for
full year 2016 compared with a net loss of $430.9 million or a $2.04 loss per share for full year 2015.

Exploration expenses totaled $39.3 million for the full year, primarily related to the write-off of the
Company's suspended exploratory well costs related to the Miocene and Pliocene exploration drilling. As
of December 31, 2016 cash, cash equivalents and restricted cash were approximately $9.8 million.

Conference Call and Webcast Information

The Company will host a conference call on Thursday, March 16, 2017 at 11:00 a.m. CT (Noon ET) to
discuss the results and update its current operations.

The dial-in number to access the conference call is 1-844-883-3907 in the United States or 1-412-317-
9253 internationally. Participants should ask the call operator to be placed on the "Erin Energy Results
Conference Call."

For those unable to participate in the Company?s conference call, a replay will be available for audio
playback until March 23, 2017. The number to access the conference call replay is 1-877-344-7529 or
outside the US 1-412-317-0088. The passcode for the replay is 10102749.

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 19,000 square kilometres (~5 million acres), including current production and other
exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana 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.

For more information about Erin Energy or to request a hard copy of the Company?s most recent
complete audited financial statements free of charge, please call +1 713 797 2940 or visit

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

Lionel McBee, +1 713 797 2960
Director, Investor Relations and Corporate Communications

(In thousands, except for per share amounts)
                                                                     Years Ended December 31,
                                                                  2016         2015        2014
  Crude oil sales, net of royalties                           $    77,815 $      68,429 $      53,844
Operating costs and expenses:
  Production costs                                                 94,607        90,079        80,296
  Crude oil inventory (increase) decrease                          (1,469)       (2,502)       14,512
  Workover expenses                                                 7,860           972            ?
  Exploratory expenses                                             39,269        16,437        14,283
  Depreciation, depletion and amortization                         58,051        97,179        21,590
  Accretion of asset retirement obligations                         1,867         1,931         2,166
  Impairment of oil and gas properties                                645       261,208            ?
  Loss on settlement of asset retirement obligations                  205         3,653            ?
  General and administrative expenses                              13,772        15,905        14,322
     Total operating costs and expenses                            214,807       484,862      147,169
Operating loss                                                    (136,992)     (416,433)     (93,325)
Other income (expense):
  Currency transaction gain                                         15,674         2,520        1,758
  Interest expense                                                 (21,924)      (17,986)      (4,383)
  Other, net                                                            ?             ?          (358)
     Total other expense                                            (6,250)      (15,466)      (2,983)
Loss before income taxes                                          (143,242)     (431,899)     (96,308)
Income tax expense                                                      ?             ?            ?
Net loss before non-controlling interest                          (143,242)     (431,899)     (96,308)
  Net loss attributable to non-controlling interest                    841           962          246
  Net loss attributable to Erin Energy Corporation            $   (142,401) $   (430,937) $   (96,062)
Net loss attributable to Erin Energy Corporation per common
  Basic                                                       $      (0.67) $      (2.04) $     (0.49)
  Diluted                                                     $      (0.67) $      (2.04) $     (0.49)
Weighted-average common shares outstanding:
  Basic                                                           212,318       211,616       194,745
  Diluted                                                         212,318       211,616       194,745

(In thousands, except for share and per share data)
                                                                                    As of December 31,
                                                                                    2016         2015
Current assets:
   Cash and cash equivalents                                                     $      7,177    $     8,363
   Restricted cash                                                                      2,600          8,661
   Accounts receivable - trade                                                             ?           1,029
   Accounts receivable - partners                                                         674            287
   Accounts receivable - related party                                                  1,956          1,186
   Accounts receivable - other                                                             29             28
   Crude oil inventory                                                                  9,398          4,789
   Prepaids and other current assets                                                      872            684
      Total current assets                                                             22,706         25,027
Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net                 265,713        368,891
Other property, plant and equipment, net                                                  716          1,174
      Total property, plant and equipment, net                                        266,429        370,065
Other non-current assets
   Other non-current assets                                                                66             67
      Other assets, net                                                                    66             67
      Total assets                                                               $    289,201    $   395,159
Current liabilities:
   Accounts payable and accrued liabilities                                      $    244,963    $   213,120
   Accounts payable and accrued liabilities - related party                            29,513         30,133
   Current portion of long-term debt, net                                              12,627         96,558
      Total current liabilities                                                       287,103        339,811
Long-term notes payable - related party                                               129,796        120,006
Term loan facility                                                                     74,446             ?
Asset retirement obligations                                                           22,476         20,609
      Total liabilities                                                               513,821        480,426
Commitments and contingencies
Capital deficiency:
    Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued
      and outstanding as of December 31, 2016 and 2015, respectively                       ?               ?
    Common stock $0.001 par value - 416,666,667 shares authorized;
                                                                                          213            212
      212,622,218 and
        211,615,773 capital
   Additional paid-in shares outstanding as of December 31, 2016 and 2015,            792,972         789,615
   Accumulated deficit                                                             (1,018,292)       (875,891)
    Treasury stock at cost, 99,932 and -0- shares as of December 31, 2016 and            (228)             ?
      2015, deficit - Erin Energy Corporation
      Total                                                                          (225,335)       (86,064)
   Non-controlling interests                                                              715            797
      Total capital deficiency                                                       (224,620)       (85,267)
      Total liabilities and capital deficiency                                   $    289,201    $   395,159

(In thousands)
                                                                          Years Ended December 31, 2016
                                                                         2016         2015          2014
Cash flows from operating activities
Net loss, including non-controlling interest                         $   (143,242) $     (431,899) $      (96,308)
Adjustments to reconcile net loss to cash (used in) provided by
operating activities:
   Depreciation, depletion and amortization                                58,051         97,179           21,590
   Impairment of oil and gas properties                                       645        261,208               ?
   Write-off of suspended exploratory well costs                           33,031             ?                ?
   Asset retirement obligation accretion                                    1,867          1,931            2,166
   Amortization of debt issuance costs                                      3,615          2,766              147
   Loss on settlement of asset retirement obligations                          ?           3,653               ?
   Related party liability offset                                              ?              ?           (32,880)
   Unrealized currency transaction gain                                   (15,674)        (2,520)          (1,572)
   Share-based compensation                                                 2,941          5,027            3,095
   Payments to settle asset retirement obligations                             ?         (16,640)              ?
   Other                                                                       ?              ?               (17)
   Changes in operating assets and liabilities:
      (Increase) decrease in accounts receivable                             630            (804)             562
      (Increase) decrease in crude oil inventory                          (1,469)         (2,502)          14,512
      (Increase) decrease in prepaids and other current assets              (187)            746           (1,672)
      Increase in other non-current assets                                    ?               ?               (15)
      Increase in accounts payable and accrued liabilities                66,147          84,000           56,845
          Net cash provided by (used in) operating activities              6,355           2,145          (33,547)
Cash flows from investing activities
Capital expenditures                                                      (19,293)        (84,039)       (128,510)
Allied transaction                                                             ?               ?         (170,000)
          Net cash used in investing activities                           (19,293)        (84,039)       (298,510)
Cash flows from financing activities
Proceeds from the issuance of common stock                                     ?              ?          270,000
Proceeds from the exercise of stock options and warrants                      364          1,855             415
Payments for treasury stock arising from withholding taxes upon              (228)            ?               ?
Proceeds from vesting
restricted stock (repayments of) term loan facility                        (5,968)          (337)        100,000
Proceeds from note payable - related party, net                             6,829         61,815          10,649
Proceeds from short-term note payable                                         504             ?               ?
Repayment of short-term note payable                                         (449)            ?               ?
Debt issuance costs                                                        (1,040)                        (2,082)
Funds released from restricted cash, net                                    6,061              ?              ?
Funds restricted for debt service                                                              ?         (10,405)
Allied Transaction adjustments                                                 ?               ?         (12,440)
Funding from non-controlling interest                                          ?              553            900
          Net cash provided by financing activities                         6,073          63,886        357,037
Effect of exchange rate on cash and cash equivalents                        5,679           1,228             ?
Net increase (decrease) in cash and cash equivalents                       (1,186)        (16,780)        24,980
Cash and cash equivalents at beginning of year                              8,363          25,143            163
Cash and cash equivalents at end of year                             $      7,177 $         8,363 $       25,143
Supplemental disclosure of cash flow information
Cash paid for:
   Interest, net of amounts capitalized                              $    10,407 $        11,114 $              8
Supplemental disclosure of non-cash investing and financing
activities: of common shares for settlement of liabilities
   Issuance                                                          $        ? $             125 $            ?
   Discount on notes payable pursuant to issuance of warrants        $        53 $          4,911 $            ?
   Reduction in oil and gas properties arising from settlement of
                                                                     $    10,048 $             ? $             ?
   accounts payable and accrued liabilities
   Reduction in accounts payable from settlement of Northern         $         ?     $    24,307     $         ?
   Offshore contingency
   Receivable from non-controlling interest                          $         ?     $       552     $         ?
   Related party accounts payable, net, settled with related party   $         ?     $        ?      $    (32,880)
   notes payable retirement obligation estimate
   Change in asset                                                   $         ?     $    (4,284)    $      3,766
16 March 2017

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

Date: 16/03/2017 01:00:00 Supplied by www.sharenet.co.za                     
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