ERHC Energy Inc (ERHE)

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The real question remains however.

In the context that Elephant fields are at stake here...

If São Tomé and Principe (STP) manage to scuttle the signings on the corruption and flawed process allegations they stand to make a much better deal(s) in light of the fact that oil is worth 50% more that it was in 2004. (The longer the oil sits in the ground the more its worth.)

ANY deal can be nixed. There may be consequences, but it can be nixed (it's been nixed once already). These oil blocks are worth HUGE money. ERHE was awarded all this:


- the option to acquire a 15% interest in up to two oil blocs of ERHC's choice in the Joint Development Zone (JDZ);

- 100% interest in 2 blocs of choice in STP's Exclusive Economic Zone (EEZ) without payment of any signature bonuses (down payments for the exclusive right to explore for and produce oil in the delineated areas), after three have been chosen by the STP government;

JDZ - Joint Develepoment Zone
EEZ - Exclusive Economic Zone (Outside the JDZ, is STP's EEZ)
STP - São Tomé and Principe

- an option to acquire a 15% interest in an additional 2 blocs of ERHC's choice in the EEZ;

- 5% of STP's share of signature bonuses paid by companies in the EEZ;

- 10% of STP's share of profit oil extracted in the JDZ; and

- 1.5% overriding royalty in the gross production of crude oil in the JDZ.

(Not to mention ERHE's partners to do the work backed out and a new partner had to be found and accepted/approved by the JDZ - who's to say they won't back out. Is ERHE just going to drill from their rowboat ?)

And unbelievable deal for an over the counter bulletin board stock with one officer and millions in back debt don't you think? But thats not all! Add to that the not having to pay $100+M in a signing bonus' that ALL other award winners MUST pay.

Everyone here just pooh poohs this as "they agreed" and "ERHE earned this UN-REAL deal by prior work" Can someone enlighten me to this "work" our one man band did for São Tomé besides bring Offer to the table?

It would have been more than worth it for ERHE to pay the signing bonus (think Offor). Then, ERHE would be a screaming buy, and there would be little controversy. But because ERHE is not paying the signature bonus that all others bidders are (big drillers that can mobilize quickly) this whole deal is gaining negative media attention and is unraveling imo

If this story were to hit the nightly news what does everyone here think the public reaction would be? The pps says not good.




http://www.nigeriasaotomejda.com/Pages/2004_Licensing%20Round.html

The areas of the Blocks on offer in the 2004 JDZ Licensing Round are given below:

Block # - Area (sq kms)
Block 2 - 692
Block 3 - 666
Block 4 - 857
Block 5 - 1091
Block 6 - 588

Licensing round guidlines:
http://www.nigeriasaotomejda.com/PDFs/Updated%20Guidelines%202004.pdf


CENTURION ENERGY INT'L (CUX:TSX) O/S 88M
http://www.centurionenergy.com
Operations: Sao Tome/Nigeria JDZ
Awarded 10% (7.5% net) in Block 4 of Sao Tome / Nigeria JDZ
$US 90 million gross signature bonus
212,000 acres (16,000 net)
World class exploration acreage
Several elephant size structures mapped on 3D seismic
Potential 2.5 - 3.5 billion barrels
3 exploration phases:
- phase 1 : 4 years;
- phase 2 : 2 years;
- phase 3 : 2 years.







http://www.pgs.com/business/products/datalibrary/wsafrica/saotomeprincipe/jdz02/