ERHC on DOW JONES !!!!!
ERHC: Nigeria-Sao Tome JDZ Talks To Proceed Without Devon
7 Jul 2005 14:11 ET DJ
CALGARY (Dow Jones)--The ERHC Energy (ERHE) and Pioneer Natural Resources (PXD) consortium will proceed with negotiations in the Nigerian-Sao Tomean Joint Development Zone, despite Devon Energy's decision to halt discussions, according to ERHC.
Devon Energy, along with Pioneer and ERHC, a Houston-based oil and gas company, was part of the consortium that in May 2005 was awarded 65% operatorship of Block 2 and a 25% stake in Block 3 of the JDZ, a maritime zone jointly operated by Nigeria and Sao Tome that's believed to have considerable oil and gas potential.
However, Devon has since pulled out of the negotiations, saying that the level of interest it was awarded wasn't sufficient to warrant going through with the bid.
In a telephone interview with Dow Jones Newswires, ERHC President and CEO Ali Memon said that while Devon would be missed, Pioneer and ERHC were continuing negotiations on the joint operating agreements and production-sharing contracts for JDZ Blocks 2 and 3.
"It is a loss for the consortium, as we had an excellent working relationship with Devon," he said. "However, in Pioneer, ERHC still has a technically and financially qualified partner to work with."
Memon pointed to the June announcement by the Joint Development Authority, which operates the JDZ, in which the JDA said it expected the negotiations for the JDZ blocks to be finished within three months, as the likely timeframe.
-By Norval Scott, Dow Jones Newswires; 403-531-2912; norval.scott@dowjones.com
