Replies to post #324977 on ERHC Energy Inc (ERHE)

[midtieroil]

Looks like ERHC could lose block 4 in the EEZ too. Seems like ERHC management blew it again. What else is new? I guess that is what happens when a company like ERHC can't live up to their financial obligations and keeps defaulting on those obligations to the host country and to their partners. And who is going to pay the legal costs for this arbitration case? I wonder when we will find out the Kenya block is gone too. The next 10K should be interesting. If there is one.

[kingpindg]

The gist...

In June, ERHC agrees to sell Block 4 to Kosmos after a PSC is signed, and receives downpayment from Kosmos. Amount not stated.

In September, the agreement is revised and ERHC agrees to sell B4 to Kosmos by November 30. I guess PSC or not, the article is not clear.

ERHC continues to talk with other companies, saying the agreement with Kosmos was not exclusive.

Kosmos files for arbitration in October to keep ERHC from selling to someone else. ERHC returns downpayment.

Lots of lawyers now involved.


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