ERHC Energy Inc (ERHE)

[pinecat]

We get the 15% picks in the best two blocks.
What follows is what the ERHC president said in 2003:
see the site for a better reading:
http://www.thefreelibrary.com/ERHC+President+Explains+Recent+Agreements+as+Nigeria-Sao+Tome+Joint+...-a0100891789


ERHC retained its exploration rights in DRSTP's Exclusive Economic Zone ("EEZ").

ERHC has the right to acquire 100% working interest in two (2) blocks of its choice in the EEZ, subject to DRSTP reserving three (3) blocks of its choice. There are no signature bonuses to be paid on these two (2) blocks. ERHC additionally has the right to acquire 15% working interest in any two (2) blocks of its choice in the EEZ and would pay its proportionate share of signature bonus on these two blocks.



For simplicity, assuming that ERHC "ranked" the blocks in Choice order and DRSTP had reserved Choices 1, 2 and 3, the percentages and signature bonuses payable in each option pick are as follows:

Working Interest
Option Pick Percentage Signature Bonus Payable
----------- ---------------- -----------------
ERHC/Block Choice 1 15% 15%
ERHC/Block Choice 2 15% 15%
ERHC/Block Choice 3 0% n/a
ERHC/Block Choice 4 100% $0
ERHC/Block Choice 5 100% $0



As in the JDZ, ERHC is not precluded from bidding for additional working interest in any block in the EEZ either alone or in partnership with other oil companies.

DRSTP has indicated that it would attempt to hold its EEZ licensing round as soon as possible after the conclusion of the JDZ licensing round.
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