ERHC Energy Inc (ERHE)

[balance_builder]

I posted yestday the possible significance of This Day reporting signature bonuses due in December: disclaimer: The article (This Day) could very likely have their information incorrect when they stated,

"Winners of the five oil blocs allocated in the 2004 bid rounds are scheduled to make payment of signature bonus amounting to $283m by December 2005."

Contractors are given 30 days to pay up the signature bonus monies from the date of the PSC signing. For the article to indicate that signature bonus monies are due in December 2005 means PSC's would have to be signed no later than 12-1-05 to be accurate.

"15.5 The Contractor with whom the Authority enters into a Tender Agreement shall have a period of 30 days from the date of the signing of the agreement to pay the signature bonus."

http://www.nigeriasaotomejda.com/PDFs/Petroleum%20Regulations.pdf

Also....I believe the JDA takes the next step of scheduling the date for PSC's to be signed since we now know that the JMC has already approved the draft PSC's. I don't believe it's necessary for the JMC to meet again.....the finality of the formal signing rests with the JDA IMHO:

"9.1 The Authority may, with the approval of the Joint Ministerial Council, enter into a PSC. Such a PSC may be entered into only with a Contractor which is a company
incorporated or registered in Nigeria or in São Tomé e Príncipe."
http://www.nigeriasaotomejda.com/PDFs/Petroleum%20Regulations.pdf

To be fair, it doesn't make sense that all 3 articles indicated PSC's to be signed by mid December and I'm posting it could be sooner. The mid December date is likely accurate and the comment about the Signature bonus being due in December is probably incorrect information supplied via "This Day".