ERHC Energy Inc (ERHE)

[Nightdaytrader]

badog, that is actually a real good question...

I know Kosmos Energy is producing 11,000 Barrel per Day in Equatorial Guinea. I know they also believe the oil "channel" flows west, continuing from Equatorial Guinea to STP EEZ Block 5, and onto STP EEZ Block 4.. That is one of the reasons they kept STP EEZ Block 5, and filed litigation for STP EEZ Block 4.... So from Kosmos perspective, makes good sense..

But again, your question is a good one.. Why would ERHC Energy sell Block #4 for so little, when they knew that GALP (really Kosmos) was finally going to drill STP EEZ Block #6, in 2020? Once oil was found in any of the blocks, then block #4 would be worth more... Could there have been something in the ERHC Block 4 agreements with Kosmos, that would provide ERHC with future considerations, similar to the STP EEZ Block 11 ERHC/Kosmos agreement? From the ERHC Website, regarding STP EEZ Block 11 agreement with Kosmos, "The agreement enables us to immediately monetize one of our offshore holdings while preserving a financial upside in the event that exploration in Block 11 is successful." Why would ERHC not include the same clause in the Block #4 Kosmos agreement? If Kosmos agreed to this clause in Block #11 agreement with ERHC, maybe the same clause was in Block #4 agreement. How do we know it wasn't in agreement? Maybe it was..... Then Total came along with a better offer.... So we may never know..

Finally, I still wonder how ERHC's rights to two 15% blocks works,,, that is, which blocks can they acquire, and when can they claim those?

Just thinking out loud,
ND9