ERHC Energy Inc (ERHE)

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*********UPSTREAM NEWS*******ERHC*****

ERHC and Pioneer head for JDZ

July 7, 2005 By Upstream staff


Houston-based ERHC Energy and its partner Pioneer Natural Resources are set to accept an offer for Blocks 2 and 3 of the Joint Development Zone between Nigeria and Sao Tome & Principe.


A consortium of ERHC, Pioneer and Devon Energy were awarded interests in the blocks in May.

However, Devon declined the bid award due to the low interest it would receive as one of three consortium partners.

An EHRC spokesman said: "We understand Devon's need for a greater interest in Blocks 2 and 3. Pioneer and ERHC will now proceed to negotiate the joint operating agreements and production sharing contracts."

In Block 2, the Joint Development Authority awarded the consortium a 65% stake inclusive of ERHC's 30% signature bonus free interest, and in Block 3, a 25% interest inclusive of ERHC's 20% signature bonus free interest. Pioneer will be the operator for Block 2.