ERHC Energy Inc (ERHE)

[Krombacher]

hetherb, terms of Phase II are listed here:

http://www.nigeriasaotomejda.com/PDFs/Updated%20Guidelines%202004.pdf

Specifically, these are the requirements, and note that they are per block:

6.3 Minimum Work Obligation
a) Phase 1 – first 4 years: Contractor shall acquire/procure full 3-D seismic coverage over the block and drill one well.

b) Phase 2 – next 2 years: Contractor shall drill an additional well.

c) Phase 3 – next 2 years: Contractor shall perform geological and geophysical and engineering studies. Drilling of any wells is contingent on the results of the programme.

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So it would appear that Phase 2 would also be exploratory, and would involve one hole drilled per block. That would last 2 years. Then there's Phase 3, which is just doing more studies and analysis and that would be 2 years after that.

Looks pretty abysmal.

Krombacher