Replies to post #322442 on ERHC Energy Inc (ERHE)

[proftstocksny2]

KEY PARTS OF THE 8K. PLEASE READ AND RECOGNIZE THE UPSIDE POTENTIAL HERE WITH STARCREST. JUST GOT A BIG CHANCE TO ADJUST THEIR MODEL AND TURN THEMSELVES AROUND:

c.
Accordingly, the Company has concluded a Term Sheet with Starcrest Nigeria Energy Limited (“Starcrest”) pursuant to the Memorandum of Understanding earlier signed between the parties. The Term Sheet sets out a 180-day period commencing May 1, 2017 for a definitive agreement between the parties that gives ERHC entry, for valuable consideration, into Starcrest’s current entitlements to production.

d.
Starcrest has a significant stake in Elcrest Exploration and Production Company Limited, the holder of 45 percent of Nigeria’s producing OML 40. Starcrest also holds directly OPL 291 and OPL 242 in Nigeria.

e.
ERHC continues to bid, as part of several consortia with backing from financing partners, for producing interests in West Africa.

f.
Newstar Oil and Gas, Inc, a wholly owned subsidiary of ERHC, has also been set up to acquire producing assets domestically in the United States.

g.
ERHC is currently in discussions with the Nigeria-Sao Tome & Principe Joint Development Authority (“JDA”) regarding the terms of a new Production Sharing Contract for Block 2 of the Joint Development Zone (“JDZ”). In addition to ERHC, the JDA has designated at least one new contractor on the PSC in replacement of interest-holders that have terminated their interests in the Block.


h.
It is expected that similar discussions regarding JDZ Blocks 3 and 4 will also commence in due course.

i.
As earlier disclosed, the Company has been reviewing its legacy exploration assets with a view to deciding, on an asset-by-asset basis, the feasibility and desirability of retention in the light of conditions in the oil industry and ERHC’s revised strategic focus.

j.
In the course of the review, the Company has come to a conclusion regarding Block BDS 2008 in Chad.

k.
After careful consideration, ERHC has elected not to apply for renewal of the Exclusive Exploration Authorization and the Production Sharing Contract over Block BDS 2008 upon the expiration, in April 2017, of the current term.

l.
ERHC will be presenting at the 16th Africa Independents Forum in May 2017 in London. This is the premier international forum showcasing independents holding acreage and portfolio assets in Africa. Learn more at http://www.oilgas-events.com/Find-an-Event/Africa-Independents-Forum.