Replies to post #209547 on ERHC Energy Inc (ERHE)

[YankeMike]

Total In Talks To Buy Chevron's Sao Tome JDZ Stake

http://online.wsj.com/article/BT-CO-20100304-711623.html?mod=WSJ_Deals_LEFTLatestHeadlines

MARCH 4, 2010, 11:16 A.M. ET

LONDON (Dow Jones)--French oil company Total SA (TOT) is in advanced talks to buy a Chevron Corp. (CVX) stake in the Sao Tome-Nigeria zone, people familiar with the matter said this week, as companies continue rationalizing their West African portfolio.

U.S. company "Chevron has informed the government [of Sao Tome]" it may sell its 45.9% operated interest in Block 1 of the Nigeria-Sao Tome and Principe Joint Development Zone to Total, a person said.

The acquisition would make sense because "Total has a pipeline connected in Nigeria" at the giant Akpo field, which is located nearby, another person said.

A previous acquisition in the Chevron-operated Block 1 could provide a benchmark for the talks, the first person said.

In September 2007, Exxon Mobil Corp. (XOM) sold its 40% non-operated stake in the acreage to Addax Petroleum Corp. (ACX-T) for $77.6 million and 2% of the buyer's share of oil profit.

The first person said that, since more evidence of oil and gas presence has now emerged in the JDZ, the valuation could have increased by about 50%.

The operation--if it is finalized--would come after Royal Dutch Shell PLC (RDSA) in January agreed to sell its 30% interest in three oil production licenses to a consortium in neighboring Nigeria.

-By Benoit Faucon, Dow Jones Newswires; [phone]; [e-mail]