isnt Godsonic, Feltang, Lakeshore, Starcrest, ERHC
ALL= SEO
Note 3- Sao Tome Concession
On April 28, 2005, ERHC and its then consortium partner Noble Energy International, Ltd. (“Noble”) entered into a Memorandum of Understanding with Godsonic Oil Company Limited (“Godsonic”), an independent bidder for interest in Block 4. The Memorandum of Understanding stated that if ERHC/Noble received more than a 26% bid-interest award in Block 4 in the Nigeria and São Tomé e Príncipe Joint Development Zone (“JDZ”) from the Joint Development Authority (“JDA”) established pursuant to the Treaty between The Federal Republic and The Democratic Republic of São Tomé e Príncipe, ERHC/Noble would transfer the excess over 26% to Godsonic; on the other hand, if ERHC/Noble received less than a 26% bid-interest award in Block 4 from the JDA, Godsonic would transfer whatever Godsonic received in the Block to ERHC/Noble.
In June 2005, the JDA awarded ERHC and its then consortium partner Noble a 35% bid interest in Block 4 of the JDZ, in addition to the option interest of 25% which ERHC had exercised in the Block.
In October 2005, Noble withdrew from participation in Block 4 and Addax Petroleum (Nigeria Offshore 2) Limited (“Addax”) replaced Noble as ERHC’s consortium partner. By a Letter Agreement of October 24, 2005, ERHC and Addax undertook to transfer a 9% interest, out of the 35% bid interest, to Godsonic subject to Godsonic meeting financial and other conditions.
In November 2005, ERHC and Addax entered into a Participation Agreement dated November 17, 2005 (the “Participation Agreement”) whereby ERHC undertook to assign a 42.3% interest (the “Assigned Interest”) in Block 4 to Addax. Under the Participation Agreement, ERHC’s “Retained Interest” would be 17.7% in Block 4. The Participation Agreement stated Addax’s cash payment obligations to ERHC to be $18 million, which was paid in February and March 2006.
