ERHC Energy Inc (ERHE)

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Sao Tome set to sign JDZ awards
(Copyright © 2005 Energy Intelligence Group, Inc.)
Friday, May 20, 2005
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After long, bitter and sometimes farcical battles, Nigeria and Sao Tome and Principe are poised to announce awards for up to five blocks in their joint development zone (JDZ), Sao Tome sources say.

Nigeria's President Olusegun Obasanjo was due to go to Sao Tome on May 20 to sign authorizations prepared by the JDZ's administrator. These are expected to give Nigerian-owned, US-listed ERHC chunky stakes in the most popular blocks, beefed up through alliances with US companies. On Block 2, ERHC is expected to get a 35% joint stake with US Devon and Pioneer, and a separate 30% stake of its own, after exercising preferential rights acquired through a controversial deal negotiated with Sao Tome in 2003, sources say. On Block 4, ERHC will share 35% with US Noble Energy, while exercising rights to 25% under the 2003 agreement (EC May7'03,p9).

http://www.energyintel.com/DocumentDetail.asp?document_id=148632