ERHC Energy Inc (ERHE)

[RUBY1100]

BL 5 NEWS - Drilling next July , PSC Dec. ?

Developing 5th Atlantic Block due next year


TEHRAN (PIN) -- According to the current prediction, there is a lot of crude oil in the fifth Atlantic block, which is being explored and developed by Oil Exploration Operations Company and ICC.

Director of trade department of Oil Exploration Operations Company told Petroenergy Information Network that the block is located among Nigeria, Sao tome, and Gabon, adding, “Shares of involved companies amount to 10 percent for Nigerian Sahara Naft Company, 15 percent for another Nigerian company[ assume ERHC ] and 75 percent for the Iranian ICC.

Hushang Nassiri added that according to negotiations with ICC, OEOC is to do seismography operations by using Pezhvak ship and also interpret relevant data.

He stated that to reduce project’s risk, Oil Exploration Operations Company only receives 50 percent of expenses it will undertake during the project and the remaining half will be considered as the company’s partnership share.

“Negotiations have been carried out between Oil Exploration Operations Company and ICC and final results will be reached in another session, which is to take place in about 20 days,” he noted.

The official stated that according to current plans, exploration and development in the said block, whose contract has been signed with Nigeria, will start next July.

Managing director of Oil Exploration Operations Company had previously told Petroenergy Information Network that survey, reservoir studies, seismography and drilling operations are among exploration activities related to the said block.

Hassan Mohammadi Moqaddam also noted that primary estimates have put costs of exploration and development at the fifth Atlantic block at about $40 million.