ERHC Energy Inc (ERHE)

[Nightdaytrader]

Equator negotiating rigs for Block 2 JDZ.............

This article, last sentence, says, "Equator and its partners, the Korea National Oil Company, ONGC Videsh and Sinopec are aggressively negotiating to secure drilling rigs to commence exploration activities on OPL 323, OPL 321 and Block 2 JDZ.”

ND9
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New Nigerian oil-exploration campaign to begin soon

West African oil-and-gas explorer and developer Equator Exploration and Peak Petroleum Industries Nigeria will start drilling on their oil development, OML 122, in Nigeria soon, the companies said on Monday.

They were currently arranging finance for this project, and were hoping to start production during the third quarter of next year.

Equator announced on its website that an independent consultant’s report, compiled by Horizon Energy Partners BV, estimated the recoverable hydrocarbon volumes as 45-million barrels of oil and 730 bcf of gas.

Meanwhile, gas was also discovered in two zones on OML 122, with a total thickness of 61 m. Horizon estimated the gas-in-place to be 185 bcf, an amount capable of commercial production as a satellite to a gas development in the Bilabri field.

Meanwhile, Equator was also involved in two other prospects, in Nigeria.

The OPL 323 and PL 321 prospects were two deep-water blocks, which had been awarded to Equator, the Korean Oil company, NJ Exploration and Tulip Energy Resources Nigeria in the 2005 Nigeria licensing round.

Equator had its share of the signature bonuses for blocks OPL 323 and OPL 321 and has set aside $83-million to cover the work-programme obligations.

It has also funded its share of the signature bonus and work-programme obligation for Block 2 in the Joint Development Zone (JDZ) between São Tomé & Príncipe and Nigeria, which is adjacent to the recently-announced Chevron and Exxon discovery in Block 1 JDZ Sergio Ottochian.

Equator CEO Wade Cherwayko said: “The company is pleased with the significant progress which has been achieved in the targeting of first-oil production by the third quarter of 2007 from OML 122. In addition, Equator and its partners, the Korea National Oil Company, ONGC Videsh and Sinopec are aggressively negotiating to secure drilling rigs to commence exploration activities on OPL 323, OPL 321 and Block 2 JDZ.”