Replies to post #1282 on Oil and Gas Main (fka OGM)

[LowFloatGoat]

ERHE more info

ERHE has rights to several blocks in the Joint Development Zone (JDZ) in deep water off the coast of Nigeria. Rights to 11 BILLION barrels of crude according to this Houston Chronicle article.
http://www.chron.com/CDA/archives/archive.mpl?id=2005_3876227

ERHE will receive $18 million in cash plus full carry in block 4 according to this prospectus for listing on the Toronto Stock Exchange filed by Addax Petroleum.
http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00023043
Jan 16 2006 Amendment to (or amended) preliminary long form prospectus - English
In November 2005, Addax Petroleum entered into a participation agreement with ERHC Energy under which it anticipates that it may acquire up to a 33.3 per cent interest in, and become operator of, the Block 4 Property in return for a payment of up to $18 million and a full carry in respect of ERHC Energy’s retained interest. Addax Petroleum would also be required to pay a signature bonus of up to $23.4 million to the Joint Development Authority. A joint operating agreement and Production Sharing Contract would also have to be negotiated with the other participating parties and, in the case of the Production Sharing Contract, the Joint Development Authority before Block 4 is awarded.

When will those contracts be signed? Any Day!
Here is a post from the I-Hub ERHE board that indicates the Production Sharing Contracts (PSC)'s and Joint Operating Agreements (JOA)'s will be signed before Feb 10th, 2006.

Nigeria-Sao Tome and Principe Joint Ministerial Council
(JMC)

Posted by: markgovols
In reply to: None Date:1/30/2006 9:41:48 AM
Post #of 19853

****JMC NEXT WEEK UPDATE****

Just spoke with Joint Development Authority (JDA) source. Source confirmed again that JMC will meet next week. Was told that JMC will stil meet Feb 6th-7th or 9th-10th. He told me he would know which of the two dates for sure by this Wed-Thurs. I asked him if he was certain JMC would meet next week and he said yes. Also, I asked if ALL 5 BLOCKS would be signed and he said yes. JDA will PR results of JMC and PSC signing dates. I asked source what he would be busy with this week and he told me that he would be preparing for JMC meeting. Good to hear that from him.

And here is a nice looking chart.