ERHC Energy Inc (ERHE)

[Southern Man]

Kenya

In March 2014 the Company's subsidiary company Swala Energy (Kenya) Limited signed a binding farm-out agreement for a 25% working interest in Block 12B in Kenya with CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U. ("CEPSA"). Under the farm-out agreement, CEPSA committed to immediately pay Swala's past costs capped at US$500,000 and to pay all of Swala's costs associated with the planned 2014 350 kilometre (km) 2D seismic survey capped at US$2.7 million. Subject to certain additional conditions, CEPSA also agreed to pay all of Swala's costs associated with the drilling of up to two exploration wells, each capped at US$7.5 million (net to Swala's working interest). In April 2014 the joint venture commenced its 2D seismic acquisition programme ("Programme") in Block 12B. The survey acquired some 350km of 2D seismic data and ended in late June 2014. The initial results based on preliminary processed data indicated the presence of large-scale faulted structures across the entire basin, together with the presence of shallow volcanics, a feature of the East African Rift System. Initial results, supported by the Company's earlier reinterpretation of available legacy data, suggested a Neogene basin with approximately 3,000 metres of sedimentary fill.

http://www.4-traders.com/news/Swala-Energy-Interim-Financial-Report-For-The-Half-Year-Ended-30-June-2014--19032231/