ERHC Energy Inc (ERHE)

[Strategyone]

The original deal between ERHC and STP had the 10% profit oil going to ERHC. That was renegotiated and is no longer the case. If it was it would be in the current SEC filings for ERHE which it is not.

Here is a footnote in an earlier published link:

"105. According to the old 2001 contract, ERHC/Chrome had the option to acquire a 15% interest in up to two oil blocs of ERHC’s choice in the Joint Development Zone (JDZ). The new 2003 contract gave ERHC/Chrome a 14% stake in nine especially promising oil blocks in the JDZ. Therefore, while ERHC/Chrome will not automatically receive part of the government’s petroleum taxation, the company will have a stake in all oil blocks in the JDZ. From an oil company’s point of view, this is very favourable in that risk is diversified. If you only have a stake in two oil blocks and they strike no oil, you go empty-handed. With a stake in nine blocks, your chance of striking oil in at least some of them gives a much better likelihood for a steady flow of future revenue. "

If I recall correctly, STP had the first three 100% which they then gave 2 of those 3 to PGS for seismic studies. ERHE is left with the 4th and 5th block selection followed by a licensing round including ERHE 15% choice in two of those blocks.

I still can't figure out where or how EEL is claiming 2 100% blocks. I thought I remembered some issue from long ago that the EEL blocks and the ERHC blocks were the same two blocks and it related back to the original deal when STPetrol existed and then broke up. I still think there will be some legal delays and issues for the EEZ rights. Hopefully, it will be delayed until after ERHE starts drilling in the JDZ to provide less impact to the share price then...

If anyone has any update on the EEL/ERHE blocks please post.

Strategyone