ERHC Energy Inc (ERHE)

[DegenerateGambler]

CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U. has withdrawn from Block 11A months after the unsuccessful drilling of Tarach 1 well OilNews Kenya has learnt.

Confirming the exit principal secretary in the Ministry of Energy and Petroleum Andrew Kamau told OilNews Kenya that the Spanish explorer withdrew from the block several months ago without offering the actual date.

The company which entered into a farm-out agreement with ERHC in October 2013 was to carry the latter through to the drilling of the first well and thereafter if any significant hydrocarbons were encountered.

The exit could further reinforce earlier indications that Tarach-1 well was a dry well despite a statement by partner ERHC that the JV had encountered two different hydrocarbon charged intervals, the first extending over 100 meters terming the results as [/be] encouraging. A follow up filing to the SEC said that the operator analysis of the results if the Tarach-1 well shows that it did not encounter any reservoirs therefore classifying Tarach-1 as a dry well.

The exit puts into doubt the drilling of the planned second exploratory well , the Egole-1 a four-way rollover closure onto a Northwest – Southeast trending fault plain with mean prospective resources of 101 million barrels of oil will continue.

my comments: it appears ERHC falsely claimed the results were encouraging while the operator indicates a dry well, another misleading statement by ERHC and grounds for a shareholder lawsuit (which even if successful would not result in ANY money for shareholders (as ERCH is broke)