ERHC Energy Inc (ERHE)

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Slow progress in JDZ
Fresh indications emerged this week that both Nigeria and the archipelago of Sao Tome&Principe are tiring of slow progress in pursuing exploration and production in the highly prospective Joint Development Zone, writes Barry Morgan.
A less than conclusive probe Obo-1, which was non-commercial, was drilled in Block 1 in May 2006 by US supermajor Chevron but little has happened since.

Nigerian President Umaru Yar'Adua reassured his Sao Tome counterpart President Fradique de Menezes that he would exert pressure on all companies with acreage in the JDZ to begin drilling.

Menezes said his visit to Nigeria had primarily been to request assistance in lobbying the companies such as China's Sinopec, Addax Petroleum and US-based ERHC Energy to start exploration and production.

“We have no means like Nigeria to make the big companies fulfil the obligations they signed with the JDA because those companies also operatein the Nigerian economic zone,”Menzes said.

He said that he wanted see action on blocks 2, 3, 4, 5 and 6, which he said“were completely ready”.

Under the bilateral protocols, Nigeria will earn 60% and Sao Tome 40% of all oil and gas revenue yielded by the JDZ.

http://www.upstreamonline.com/hardcopy/news/article170300.ece