Replies to post #261159 on ERHC Energy Inc (ERHE)

[kingpindg]

mid, perhaps it's all relative...

Note that CAMAC only paid $310,000 per block in signature bonuses in May of 2012. However, maybe to the Kenyans that is an "arm and a leg" compared to the "arm (or leg)" of $100,000 (Canadian) that Centric Energy paid in January of 2010.

CAMAC - http://www.sec.gov/Archives/edgar/data/1402281/000135448812002672/cak_8k.htm

Centric - http://www.stockresearchportal.com/CompanyRegulatoryFilings/18119_001001_06-10-2010-04-26-56-090.pdf


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[TOB]

That is false:

After reading a little further I think the "no signature bonus" actually means the amount is not specified in the Model PSC and is negotiable. I was a little surprised by that provision because I do believe there will be a signature bonus. The question is how much, when will it be paid and how will it be paid. I have to believe these blocks are at least in the $2-$5 million range each given that they are saying they cost an "arm and a leg".

The Petroleum Act of Kenya has no signature bonus.

The Petroleum (Exploration and Production Act)

Provides the legal framework and regulates the negotiations and conclusion of Production Sharing Contracts with potential investors.

Empowers the Minister for Energy to sign the Petroleum Sharing Contracts.

Has no signature bonus.

Government pays taxes on behalf of the investor thus imposing very light fiscal burden.