Replies to post #259841 on ERHC Energy Inc (ERHE)

[TOB]

Sinopec can't sell the Assigned Interest from ERHC without ERHC's approval. Which the JDA would have to also approve along with a new PSC and JOA.

why wouldnt SNP sell their % to total?

ERHC farmed out a percentage of their option and bid interest, it reverts to ERHC should Sinopec relinquish their acquired interest.

Sinopec has the right to withdraw from its Participating Interest of the JOA and PSC after the completion of the Phase I work program of the PSC. At that point Sinopec must convey back to ERHC the assigned interest, fee of all costs and encumbrances.

Sinopec may not bind ERHC to any further obligation without ERHC's approval.

Sinopec also has to have approval from the JDA, and have completed any work required to their satisfaction, and turn over all data and analysis, records, logs, etc. If the well it drilled was temporarily plugged and abandoned, Sinopec would be liable to permanently plug and abandon them.

The JDA would need to approve all of this, at which point ERHC and Sinopec would be free to announce it as news. ERHC (and any remaining interest holder) would then be free negotiate a new PSC and new JOA.

[ac hotfries]

mz,

perhaps this % configuration would have been the agreed upon make up all along? That's how SNP was able to entice Total to entering Block 1? If Block 1 & 2 were combined and everything were split down the middle, this is how it would look:

Combined Block 1&2 new %

Total (after gaining SNP's block 2 %): 44.5%
Addax/SNP: 20%
ERHC: 11% (which could be eaten up by total too)


Don't know what is going on with these Block 2 %'s

ONGC, Amber, Foby and Equator - It would be appx. 17.5% of the 2 blocks if they were evenly combined (35% of Block 2). This % is available for however it is worked out.


Not sure how these 3 and their Block 1 interests would fit into it. But I don't think they are going anywhere. Cut their interest in half when you add in Block 2 and this is what you end up with.

Afren: 2.2%
Dangote: 2.3%
Sasol: 2.55%


Obviously this is waaaaay oversimplified and probably not realistic, but it does result in a % make up that I think SNP and Total would be happy with. Like I said, just thinking of a happy scenario for once. lol

-ach