ERHC Energy Inc (ERHE)

[ERHClongtimer]

30/09/2010 - JDZ partners decide to put toes back into deepwater (Africa Oil and Gas)

Sinopec and subsidiary Addax are negotiating on extending their time in the Joint Development Zone (JDZ) despite the disappointing five well exploration programme.

Last year's programme only turned up an uncommercial 1 Tcf of gas (see AOG 25 March 2010) in the zone shared by Nigeria and Sao Tome & Principe (STP), and the governments had feared that they would not renew Blocks 2, 3 and 4.

However, partner ERHC said that they are currently negotiating the terms for entry into Exploration Phase II with the Joint Development Authority (JDA).

"Natural gas was discovered in at least three wells. The operators' analyses of the well outcomes, while still ongoing, are informing the parties' negotiations with the JDA on terms for entry into Exploration Phase II (or a further extension of Exploration Phase I)," ERHC said, adding that: "An agreement could come at any time."

The negotiations will also address the issue of "...a number of small interest holders in each block either defaulting on their financial obligations or choosing not to proceed with Exploration Phase II. The interests of the defaulting or withdrawing parties will be available in the first instance to the remaining parties and thereafter to interested new players in the blocks".


16/09/2010 - Sao Tome extends exclusive round (Africa Oil and Gas)

As previously revealed by AOG (see 25 March 2010), the five-well drilling campaign by Sinopec and subsidiary Addax Petroleum last year in the joint development zone gave disappointing results, not only due to the fact that it was gas rather than oil but also because of the quantities discovered - only 1 Tcf. This has had a negative effect on interest in the EEZ. The companies are currently deciding whether to extend the production sharing contracts or give up the acreage.

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