ERHC Energy Inc (ERHE)

[kingpindg]

Acquisition of oil firm in the offing


By KENNEDY SENELWA, TEA Special Correspondent

Posted  Saturday, January 10  2015 at  20:07



Nigerian oil firm Seplat Petroleum Development Company Ltd has approached London Stock Exchange-listed Afren Plc, which is exploring for crude oil in Kenya and Tanzania, with takeover proposal after ERHC Energy Inc announced plans to sell a portion of its assets in Kenya and Chad.

The deal will see Seplat gain a foothold in East Africa. Afren owns 80 per cent of onshore block 1, 100 per cent stake in offshore block L17 and L18 in Kenya, in addition to 74 per cent share of Tanga block in Tanzania.

Decline in oil prices

Nairobi-based Hydrocarbons Management Consultants said small to midsized exploration and production firms could be snapped up by rich rivals due to fragile conditions caused by sharp decline of crude oil prices.

“They have to sell part of their exploration rights to raise funds to expedite well drilling to comply with work programmes agreed on with Ministry of Energy in Kenya,” said Hydrocarbons lead consultant Robert Shisoka.

Rift Energy Corporation and FAR Ltd are seeking new investors to fund future exploration work in Kenya. ERHC wants to sale part of its share in block 11A in northwestern Kenya and Chad’s block BDS-2008.

“We cannot predict when or if this will occur. These strategies were already being pursued prior to the decline in crude oil prices,’’ said ERHC’s spokesman Daniel Keeney. The firm has 35 per cent cstake in block 11A.

Compañía Española de Petróleos and National Oil Corporation of Kenya each own 55 per cent and 10 per cent of acreage 11A, where a seismic survey to map out crude oil deposits was completed in July 2014.

http://www.theeastafrican.co.ke/business/Acquisition-of-oil-firm-in-the-offing--/-/2560/2585026/-/erjly1z/-/index.html


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