ERHC Energy Inc (ERHE)

[RUBY1100]

****UPSTREAM SURPRISE *** ERHC ***

Sinopec is primed for JDZ drilling

STRONG indications emerged this week that state-owned Chinese giant Sinopec has acquired a drillship to sink its debut wildcat in July on Block 2 in the Joint Development Zone (JDZ) administered jointly between Nigeria and the archipelago of Sao Tome&Principe.
The Abuja-based Joint Development Authority this week hinted the unit may arrive in early July on a two-month charter for the Sinopec-operated consortium.

Upstream earlier reported the Transocean-managed drillship Deepwater Pathfinder will mobilise later this year from an Addax Petroleum-operated well on Block 4 for a wildcat on Sinopec's Bomu prospect on Block 2 - the first of five prospects identified.

With a second unit scheduled to arrive in the JDZ two months ahead of the Pathfinder, the long-neglected play looks set to heat up still further with intensive exploration drilling of the kind demanded earlier this year by the Nigeria and Sao Tome heads of state, Presidents Umaru Yar'Adua and Fradique de Menezes, respectively.

Both Addax and Sinopec had last year anticipated mobilising the drillship Aban Abraham for the JDZ but the unit will first be deployed for Vanco Energy's Dzata-1 probe off Cape Coast this month and stay in Ghana for Tullow Oil and Kosmos Energy.

The prospect of Sinopec intensifying exploration activity in the JDZ has fuelled investor speculation that this may be the Chinese giant angling to acquire block equity from partner Addax and possibly Nigerian-controlled ERHC Energy.


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Thursday, 07 May, 2009, 23:01 GMT | last updated: Thursday, 07 May, 2009, 23:01 GMT