ERHC Energy Inc (ERHE)

[kingpindg]

Again, there is nothing in the original agreement between STP and ERHC that provides for the extension of ERHC's rights on the block in the case that ERHC were to sign an agreement to transfer interest in the block to another party. The only provision in the original agreement that addresses extension is the following:

6.3 On the expiration of the term of this Agreement, if ERHC have Working Interest in all or part of any Block in production, ERHC's corresponding rights in the said Blocks shall continue as long as those Blocks are in production.

So what is debatable is, does the signing of a PSC effectively place a block "in production"? I am now of the opinion that it does and so that would be ERHC's only hope of extending their rights on Block 4. Assuming they do still have those rights as of now, which is also debatable, IMO.


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