Homeport, thanks for all your translations, BTW.
This article, now only a cache on google originally from business wire, explains ERHE ownership in the EEZ as being able to take 15% from the very best two blocks of the EEZ. That implies 15% of each of EEL's two favorite blocks, signature bonus payable. Not sure how the sig. bonuses are determined (maybe as 15% of EEL's low sig. bonuses?). John Coleman never explained it, was very cryptic when asked, maybe a question for Ms. Buks?
Don't know how to get the article direct, but do a google search for
"ERHC president explains recent" and then select the cached article.
Here is the pertinent part from the cached article:
ERHC's DRSTP EEZ Rights
ERHC retained its exploration rights in DRSTP's Exclusive Economic Zone ("EEZ").
ERHC has the right to acquire 100% working interest in two (2) blocks of its choice in the EEZ, subject to DRSTP reserving three (3) blocks of its choice. There are no signature bonuses to be paid on these two (2) blocks. ERHC additionally has the right to acquire 15% working interest in any two (2) blocks of its choice in the EEZ and would pay its proportionate share of signature bonus on these two blocks.
For simplicity, assuming that ERHC "ranked" the blocks in Choice order and DRSTP had reserved Choices 1, 2 and 3, the percentages and signature bonuses payable in each option pick are as follows:
Working Interest
Option Pick Percentage Signature Bonus Payable
----------- ---------------- -----------------------
ERHC/Block Choice 1 15% 15% of the total
Signature Bonus
ERHC/Block Choice 2 15% 15% of the total
Signature Bonus
ERHC/Block Choice 3 0% n/a
ERHC/Block Choice 4 100% $0
ERHC/Block Choice 5 100% $0
As in the JDZ, ERHC is not precluded from bidding for additional working interest in any block in the EEZ either alone or in partnership with other oil companies.
DRSTP has indicated that it would attempt to hold its EEZ licensing round as soon as possible after the conclusion of the JDZ licensing round.
