ERHC Energy Inc (ERHE)

[chcr]

ERHC grabs Nigeria blocks

21:56 GMT

US explorer Environmental Remediation Holdings (EHRC) is back on track for clinching operatorship of blocks 2 and 4 in the Joint Development Zone administered by Nigeria and the archipelagic state of Sao Tome & Principe.

US explorer Environmental Remediation Holdings (EHRC) is back on track for clinching operatorship of blocks 2 and 4 in the Joint Development Zone administered by Nigeria and the archipelagic state of Sao Tome & Principe.

ExxonMobil was this week holding meetings with all interested parties in an attempt to snare a piece of the action despite having declined to bid the acreage when it had the chance in last year's round.

Official sources in the Nigerian capital hinted both blocks were now done deals with ERHC jointly applying with Dallas-based Pioneer Natural Resources for block 2 and with Noble Energy for block 4. Noble sealed the deal by committing a rig for initial operations in the ultra deep play.

Protracted discussions over the award of block 6 are coming to an end with officials on both sides of the Gulf of Guinea keen to get exploration moving after years of delay. Nine blocks were originally offered with operatorship of block 1 awarded to ChevronTexaco with ExxonMobil claiming junior equity.

The remaining six blocks will be thrown back into the hat for rebidding by the Joint Development Authority almost immediately in order not to compromise a parallel deepwater round proposed by Nigeria for its own Exclusive Economic Zone in 1Q 2005.

[e-mail]