ERHC Energy Inc (ERHE)

[moediggity]

ERHC targets 2015 for JDZ fields’ start up

http://www.punchng.com/Articl.aspx?theartic=Art201003041345746


ERHC Energy, an American oil company with Nigerians holding controlling interest, is looking forward to between 2015 and 2020 for production to begin at its deepwater fields in the Joint Development Zone of Nigeria and Sao Tome and Principe.

The company’s Vice-President Corporate Development, Mr. David Bovell, who disclosed this, on the sidelines of the Nigeria Oil and Gas 2010 Conference in Abuja, said ERHC was planning to expand its operations substantially in Sub-Saharan Africa.

Also, a member of the board of the company and former United States’ Ambassador to Nigeria, Mr. Howard Jetter, said he joined the board of the company because he was impressed with the company’s goals.

He said, “I actually retired from the United States government shortly after leaving Nigeria in 2003. So, I am now a private person with other interests. When I was asked to join the board of ERHC, I did my due diligence and I was impressed by what they were doing and what they have done. You know, it is a company exploring opportunities in the oil and gas industry.”

The former diplomat stressed that ERHC Energy also supported local content. “I have been on the board for almost four years. The company has a vision. As you know, it has very significant interests in the JDZ.

ERHC got involved in the JDZ when others would not do it. This shows what local companies that believe in a country where they are can do. But ERHC is an American company. It is incorporated in Colorado, it is a public company,” he added.

Jeter noted that the company had done a very good job in terms of its involvement in the JDZ.

“Now, the next phase of development is essentially to look for other opportunities in the West African sub-region, particularly here in Nigeria,” he said.

He said the company’s vision was to “maximise shareholders’ value through exploitation of its rights and working interest in exploration acreage offshore central West Africa” while its mission was “sustainable and profitable growth through risk-balanced exploration, cost efficient development and high margin production.”

The company’s Chief Operating Officer, Mr. Peter Ntepehe, stated that ERHC Energy, which he described as “an American company with Nigerian face” was not an exploration and production company but an energy investment company.

“Our business model is non-operator model. We are an energy investment company. Our policy is to develop opportunities and bring in financial expertise to harness these opportunities. We go into Greenfield areas that have never been touched and explore opportunities for E & P companies to come in,” he said

Ntephe disclosed that opportunities abound in Nigeria for E&P companies but access to international capital was a major challenge.

“We are publicly listed. So, we can raise funds; the operators can also carry our costs and recover it from production like in the JDZ,” he said.

He disclosed that the company had not considered the possibility of listing in the Nigerian Stock Exchang adding that as soon as it concluded the process of listing in the Alternative Investment Market of the London Stock Exchange, the next target was the Johannesburg Stock Exchange.

“We are publicly listed in the United States. We now want to get into London. After London, what is on the pipeline is Johannesburg. As soon as we finish with London, the next target is Johannesburg. South Africa is a little bit more advanced than Nigeria,” he added.

Ntephe disclosed that the company was“currently focused on exploiting its assets- rights to working interests in oil and gas reserves in the Gulf of Guinea offshore central West Africa.”

According to him, during the past two years, ERHC has formed strong alliances with Addax Petroleum and Sinopec Corporation, both of which are experienced exploration and production companies.

“In August 2009, Addax and Sinopec began a coordinated exploratory drilling campaign encompassing JDZ Blocks 2, 3 and 4. A total of five wells are being drilled in the intitiative,” he said.

“Additionally, in Sao Tome & Principe’s Exclusive Economic Zone , ERHC’s rights to participate in exploration and production activities include the right to receive up to two blocks of ERHC’s choice and the option to acquire up to a 15 per cent paid working interest in another two blocks of ERHC’s choice. The company would be responsible for its proportionate share of exploration and exploitation costs in the EEZ blocks,’ Ntephe added.

He said the company was also “working to diversify its holdings and build upon its assets in the Gulf of Guinea through a carefully executed acquisition strategy aimed at viable revenue producing properties.”

On insinuations that the results of the exploratory drilling in the JDZ have not been encouraging, the COO argued that it was premature to arrive at such conclusion.