The following clearly indicates that Sao Tome does have problems with ERHE and would like them investigated for irregularities and bribery. Still don't know why this board is pretending this is not happening and that the stock has cut in half since....
4th July
ERHC Eyes Fixed On JDZ Business Interest Amid U.S. Probe
By Bassey Udo, Energy Editor
ERHC Energy, the Houston-based independent oil and gas exploration and production (E&P) company in the Gulf of Guinea, said over the weekend that it would not be distracted from its focus to pursue its business interests in the Nigeria-Sao tome and Principe Joint Development Zone (JDZ) despite the ongoing probe of its activities in the area by the U.S. Department of Justice.
Early this year, a top official of the Sao Tomean Justice department criticized the award of some oil blocs under the 2004 Nigeria-Sao Tome Bid Round particularly the provisions of the memorandum of understanding (MOU) which granted ERHC preferential rights in all the blocs by virtue of existence in the area prior to the 2001 treaty establishing the JDZ.
The official alleged largescale irregularities, including bribing top Sao Tomean government and Petroleum Ministry officials and called for probe by the US department.
ERHC, which has a Nigerian, Chief Emeka Offor, as Chairman, is already holding equity stake in Block-1 in the zone with ChevronTexaco as operator. It also has stakes ranging between 15 and 60 percent in the recently awarded Blocs 3, 4 and 5.
But, ERHC in a statement said it is cooperating with the US department in their investigations, saying an agreement was reached recently for the Sao Tome department of Justice to return to it the complete copy set of all documents it seized during the May 4, 2006 search of the ERHC's Houston office.
in connection with the Department's investigation into questions surrounding the Company's The JDZ rests approximately 200 kilometers off of the coastline of Nigeria and the island nation of Sao Tome & Principe, and is adjacent to areas where there have been several large petroleum discoveries
