ERHC Energy Inc (ERHE)

[daylatedolarshort]

By Ejiofor Alike

05 Oct 2010
http://www.thisdaylive.com/articles/oil-exploration-firm-negotiates-phase-2-in-jdz/77363/

...On the progress recorded in the Exclusive Economic Zone (EEZ) that belongs solely to Sao Tome &
Principe, Ntephe noted that ERHC continued to be encouraged by the interest from potential farm-in
partners for oil and gas exploration in the EEZ.
He disclosed that ERHC has a 100 per cent working interest in EEZ Blocks 4 and 11 that are
completely free of signature bonuses.
“Earlier this month, the National Petroleum Agency of São Tomé & Príncipe (ANP-STP) extended the
1st Licensing Round to later in the year to give more companies an opportunity to take part in the
bidding process. We consider the extension to be a positive development as it could attract more
exploration companies and provides ERHC more time to reach agreement with a technical partner
prior to entering into negotiations of Production Sharing Contracts,” he said.

According to him, ERHC believes the EEZ has all the necessary components of a successful
petroleum system.
Ntephe noted :“The close proximity of São Tomé and Príncipe’s offshore waters to the proven
hydrocarbon systems in the adjacent territorial waters of Gabon, Cameroon, Equatorial Guinea and
Nigeria suggests the potential for hydrocarbons, which is further supported by seismic data and
petroleum seeps seen on the island of São Tomé.”
He also said that the effort to conclude an agreement with one or more operating partners in the
EEZ was a long-term initiative that would likely be completed in 2011.

“Following the completion of the EEZ 1st Licensing Round, ERHC will consider exercising its
preferred rights to back-in to two additional EEZ Blocks of its choice with a 15 per cent working
interest on which a signature bonus would be payable. This would follow discussions with the Block
operators whom ANP-STP selects as well as technical due diligence of the Blocks,” he added.

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7-Oct-2010
Entry into a Material Definitive Agreement, Regulation FD Disclosure, Financial S

The Private Placement to raise $2 million. Were they negotiating a deal and all they had to do is raise $2 million to back-in to two additional EEZ Blocks with a 15% working interest?

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http://www.hrw.org/en/node/92601/section/8

...Equator Exploration, for its part, was allocated Block 5 and Block 12 in the EEZ and in mid-2010
began to negotiate the production sharing contracts. The government has asked for signature bonus
payments of $2 million for Block 5 and $2.5 million for Block 12 according to the Economist Intelligence
Unit. [49] In February 2010, the São Tomean government reached formal agreements to award
blocks 4 and 11 to EHRC for no signature bonus payments. [50] The government has contracted a
private company to negotiate production sharing contracts with both companies for these blocks in
2010. [51]

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http://www.equatorexploration.com/operations/sao_tome.aspx

Prospectivity
JDZ Block 2 lies at the end of the toe thrust of the deep water Niger basin. It is adjacent to
Nigerian Block OML 130, which hosts the Akpo Field, with reserves of 600 million barrels of oil
and 1 TCF of gas (Total 2007) and series of significant discoveries. The Obo-1 well discovery in
the adjoining Block 1 proved the existence of a hydrocarbon source and the presence of excellent
reservoir sands in the region of Block 2.

Based on the 3D seismic survey, acquired in 2003 by PGS and partially funded by Equator, NSAI made
a Best Estimate of Gross Unrisked Prospective Resources of 1.3 billion barrels of oil and 1.9
trillion standard cubic feet of gas in total in the 10 identified prospects.

The subsequent evaluation by the operator differs in detail with regard to the definition, size
and ranking of the prospects from the NSAI evaluation. For example, the operator identified 18
structures. Their estimate of total unrisked prospective oil-in-place is 3.9 billion barrels and
of unrisked prospective gas-in-place is 8 trillion cu ft, both at the P50 level. These figures
compare with NSAI’s Best Estimates of unrisked prospective in-place volumes of 4.7 billion barrels
for oil and 3 trillion cu ft for gas.


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ExxonMobil sees gas trumping coal by 2030
Natural gas will surpass coal as the second-largest global energy source behind oil by 2030, even
as overall global demand for energy jumps 35% from 2005 levels, ExxonMobil said today.

News wires 27 January 2011 18:19 GMT

That energy demand will be fastest in developing economies, where usage will climb 70%, while
developed economies will see essentially flat demand because of improvements in energy efficiency,
the supermajor said in its annual energy outlook, according to a Reuters report.

New supplies of gas, including the shale rock fields that are now being tapped across North
America, and its lower environmental impact versus other fuels, will drive that higher demand.

Exxon and its peers such as Chevron have invested heavily in large natural gas developments in
recent years.

Power generation is the fastest growing major energy-demand sector, the company said, and will
contribute 55% of the total growth in demand through 2030, bringing its share of total energy
demand to 40%.

Alternative sources of energy such as wind, solar and biofuels will grow about 10% per year
through 2030, but will still contribute only about 2.5% of total global energy supplies,
ExxonMobil said.

Published: 27 January 2011 18:19 GMT | Last updated: 27 January 2011 18:20 GMT


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