ERHC Energy Inc (ERHE)

[oilman57]

The Sao Tome EEZ is where ERHE holds additional percentages, not the Nigerian EEZ. The Sao Tome EEZ is a zone that is seperate from the Joint Development Zone (JDZ). The JDZ is the deepwater zone that is jointly owned by Nigeria and Sao Tome and is the one that is currently being auctioned. The Sao Tome EEZ is the deepwater zone that is owned exclusively by the county Sao Tome. The Sao Tome auction will probably get under way later this year.

ERHE's rights via a treaty are enormous in the Sao Tome EEZ and IMHO have not even been priced into the stock yet. ERHE has the following rights in the Sao Tome EEZ:

100% block (4th selection in the zone)

100% block (5th selection in the zone)

15% block

15% block

So in sum ERHE has rights in 4 blocks in the Sao Tome EEZ. They will have two 100% blocks and two 15% blocks. They get the 4th and 5th pick overall in the Sao Tome EEZ. And these picks are signature bonus free. So these rights are enormous. Obviously they will be operators of the two one hundred percent blocks and probably will partner with some mid tiers to develop the blocks and carry some of the costs.

EEL has the first two picks in the EEZ. Then someone else has the third. Then ERHE has the 4th and 5th picks. The auction for the rest of the blocks will occur after these selections are made. The President of Sao Tome said they will begin this process this year. Right now EEL is in the process of reviewing the 2D and 3d seismic so they can make their first two selections.

The Sao Tome EEZ is supposedly just as prolific as the Joint Development Zone.