ERHC Energy Inc (ERHE)

[RUBY1100]

BALANCE - this REPORT SAYS PSCs BEFORE XMAS !!!

"celebrate agreements with the winning companies in time for Christmas. "

A BETTER TRANSLATION , sorry Mr. Poopypants

AS AUCTION OF PETROLIFEROUS BLOCKS IS VITIATED 12.12.2005-J.Vitrina-(S. Tomé) the procedures used for the selecion of the company auction as concessionaires for zone of joint exploration of oil between S. Tomé and Príncipe and the Nigéria are vitiated with "serious imperfections" and they had not reached the necessary minimum standards the concession of licenses.

The conclusion is of the office of the attorney general-generality of the republic and relates to results of an inquiry made for this institution in the sequência of some done denunciations the substance. As one note of the press of the office of the attorney general-generality of the republic these procedures had occurred in financial detriment of S. Tomé and Príncipe BUT had made with the authority of joint development has been disabled until the present date to celebrate agreements with the winning companies in time for Christmas.

The public prosecution service still advances that the second round suffered amongst other serious procedural deficiencies including the concession of participation for many not qualified companies or with inferior qualifications in terms technician and financiers. Therefore the elaborated report contains some recommendations for the procedures and transparency to be implemented in the future patrols. This in the perspective to assure that the international ones in substance of auction of petroliferous blocks are the best adoptees practical.

The report according to office of the attorney general-generality of the republic was delivered to the president of the republic, to the president of the national assembleia and to the government. It matters to emphasize that as the auction of petroliferous blocks in the zone of joint exploration between the Nigéria and S. Tomé and Príncipe was carried through in 2004.. Jose Bouças