ERHC Energy Inc (ERHE)

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EEL (consolidated)Annual Financial Report(s) is just out.

http://www.equatorexploration.com/investors/documents/EEL_Annual_Report_2007_2008_&_2009.pdf

Here are the money paragraphs of core interest to ERHE folk:(bold highlights are mine)

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JDZ

pg.10 - "While the discovery in the Bomu 1 well of gas rather than oil was disappointing, the reservoir sands and traps were, by and large, encountered as expected. Further technical and commercial evaluation of the discovery and the other prospects on Block 2 is underway. The JDA has granted a six month extension to 14 September 2010 to allow Sinopec to complete these studies and to allow the participants to make a properly informed judgment on whether to enter the next Exploration Phase with its commitment of one well. Four other wells were drilled in the JDZ, three in Block 4 and one in Block 3, simultaneously with Bomu 1. We believe that the JDA may also grant extensions for these blocks allowing the common operator, Sinopec, tointegrate the studies on a regional basis to the benefit of the JDA and participants".

EEZ

pg.11 - "Prior to the current EEZ Licensing Round, the government invited the Company to make its first choice of two blocks according to the Exploration and Production Option Agreement which Equator has with the government. Following Equator exercising its option, the Company received from the government a letter of allocation of the rights to Block 5 and Block 12 in the EEZ. The government has informed Equator that it will begin negotiation of the Production Sharing Contracts during 2Q 2010. Signature of the PSC’s will commit the Company to the payment of signature bonuses and to the execution of work programmes. Equator intends to enhance the value and manage the risks of its opportunity in the EEZ by seeking farm-outs to an
acknowledged deep water operators."


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