ERHC Energy Inc (ERHE)

[RUBY1100]

Mid 2007 - JDZ Drilling re UPSTREAM

somewhat related ...

Mvelphanda Holdings strengthens upstream hand
BLACK economic empowerment combine Mvelphanda Holdings looks set to strengthen its African upstream position this year as several new deals kick in, writes Barry Morgan.
The South African group already controls Ophir Energy, which now manages Mvelphanda's stake in Forest Oil's Ibubhesi gas field on Block 2a off the Western Cape.

Tanzania aims to finalise deepwater PSCs in the Indian Ocean before the end of the year but Ophir hopes to have its own bid for Block 1 signed by the end of this month. Ophir is targeting marine acreage off the southern coastal settlement of Mtwara.

Ophir's first foray into Nigeria was successfully concluded following the last licensing round in which it partnered local independent Ashburt Petroleum in bidding for deep-water Block OPL-325 off the Niger Delta. Ashburt's owner has strong links with seismic outfit Veritas. Also in OPL-351 is Nigerian downstream independent Oando Petroleum, which has been keen to extend its reach into the upstream sector.

Ophir also qualified for Block OPL-251 with Nigerian National Petroleum Corporation subsidiary, the Nigerian Petroleum Development Company. Also in the line-up is Refinee PetroPlus, a company linked to local downstream player Sahara Energy.

On both licences it is understood Ophir is angling for 30% equity and possible operatorship of one licence. Ophir earlier this year landed 4% of Block 3, operated by Anadarko Petroleum in the Joint Development Zone managed by Nigeria together with neighbouring Sao Tome that group is expected to sink the drillbit in mid-2007.