Replies to post #155907 on ERHC Energy Inc (ERHE)

[Southern Man]

SINOPEC Shanghai Offshore Oil & Gas Company

SINOPEC Shanghai Offshore Oil & Gas Company (hereinafter referred as "Shanghai Company"), with rich experiences in offshore oil & gas exploration and controlling certain developing technique, is engaged especially in offshore oil and gas exploration and development.

Shanghai Company has three main business scopes: First, on behalf of SINOPEC, playing a significant role in the management including exploration evaluation research, development construction and production technique managing, defending SINOPEC's shareholder rights in two cooperation projects i.e. Xihu Project and Pinghu Project; the Second is undertaking an autonomous exploration in the regions in either the East China Sea, the South China Sea and the Yellow Sea for the purpose of finding new oil & gas field to establish autonomous developing base as soon as possible; the Third is undertaking the research work on appraisal of the oversea oil & gas resources exploration and development project.

Autonomous exploration focuses on achieving oil & gas breakthrough in new area. In the year of 2007, Shanghai Company has finished compiling the scheme, which now got approved by SINOPEC, of the Qiongdongnan deep water 3D Seismic Exploring Project, meanwhile, completing the negotiation and signing for the 3D Data collection Contract; Start researching on preparing project for "Qiongdongnan deep water drilling technique survey and earlier stage operation appraisal" by surveying the deep water drilling technique and related equipments for the earlier stage preparation of deep water drilling; Organizing two brainstorm geophysical technical projects, one of them is "2D Seismic Data re-processing in South Part of East China Sea", thus lay the foundation for SINOPEC's ocean exploring territory fundamental geology research and exploration potentiality appraisal. .

With a total area of 242km2, Pinghu Oil & Gas Field which has began to supply high quality nature gas to Shanghai since April 1999 is the first oil & gas field under developing. Up to the end of year 2007, it has accumulated producing 3.1052 million tons of crude oil, nature gas in 3.599 billion m3. For the purpose of appraisal the Pinhu Oil & Gas field as well as it's surrounding structure profoundly, searching for backup resources, Shanghai Petroleum Company LTD has carried out a hi-precision 3D seismic Data re-collection covering 382km2. Various measures have been taken to enhance the oil and gas production of Pinhu Oil & Gas field. Well A11, B01,B9 has been completed and put into production successively.

Chunxiao first phase construction of Xihu Project had been accomplished in February 8, 2006.

Oversea projects achieve success. The research results of two oversea technical support projects--Sakhalin project and Nigeria project has achieved acknowledgement from SINOPEC International Petroleum Exploration and Production Corporation as well as the foreign partners.

Up to the end of year 2007, Shanghai Company owns a share of proven geological reserve of 916.1 million ton of oil and 316.7 hundred million cubic meter of gas, and 46 exploring wells and appraisal wells in total had been drilled which hit a 60% more success rate. Up to present date, the Company owns twelve marine autonomous exploration blocks in about 56748km2 that located in East China Sea Basin, Qiongdongnan Basin and Beibuwan Basin. Jointly shared with China National Offshore Oil Corporation, Shanghai Company also owns thirteen prospecting blocks and two exploiting blocks located in East China Sea Shelf Basin, Xihu Trough covering 37765km2.

A series of achievements covering various fields such as coast investigation, sea bed mineral resources investigation, maritime space delimitation, sea bed sedimentary topography study ect. has been made by Shanghai Company. More than 60 various awards has been granted to the Company by National science and technology committee, National development and reform commission, State Economic and Trade Commission, State Mineral Resource Commission, Ministry of Geology and Mineral Resources, Ministry of Science and Technology, Ministry of Finance, SINOPEC and Shanghai Municipal Government together with a honorable title of Notable Unit of Geological and Mineral Resources Exploration.