- Chief Executive Officer Issues July Update for ERHC Energy Inc. Shareholders 8-Jul-10
- ERHC Energy Inc. Files Shelf Registration Statement to Raise $50 Million 8-Jul-10
- ERHC Energy Inc. Issues Statement Regarding Inaccurate Claims by Another Company 25-Jun-10
- Chief Executive Officer Updates ERHC Energy Inc. Shareholders 26-May-10
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ERHC Energy Milestones
ERHC Energy has come a long way from its roots as an environmental remediation company. In 1996, ERHC narrowed its focus and began operating solely as an independent oil and gas company. Following are some milestones ERHC has achieved as it makes progress toward maximizing corporate value and shareholder returns by leveraging its assets in the Joint Development Zone (JDZ) between Sao Tome & Principe and Nigeria and in the exclusive waters of São Tomé & Príncipe (EEZ) and by pursuing other upstream and downstream oil and gas opportunities wherever attractive projects can be acquired at low cost and transformed into valuable oil and gas assets.In May 1997, ERHC entered into an exclusive joint venture with São Tomé & Príncipe. ERHC sought that agreement because it identified the possibility of significant reserves offshore of Sao Tome & Principe years before anyone else did and was willing to undertake the hard work necessary to realize the value of these assets.
On May 21, 2001, ERHC was awarded exploration and production rights in the EEZ and the JDZ.
In April 2003, ERHC and Sao Tome & Principe entered into an Option Agreement in which ERHC relinquished certain financial interests in the JDZ in exchange for exploration rights in the same area.
In late 2005 and early 2006, ERHC Energy sold participation intersets in JDZ Blocks 2, 3 and 4. These sales established relationships with experienced exploration and production companies and stabilized the company's financial position.
- On November 17, 2005, ERHC agreed to sell a participating interest in Block 4 of the JDZ to Addax Petroleum. This transaction was completed in February 2006.
- On February 16, 2006, the Company sold a participating interest in Block 3 of the JDZ to Addax Petroleum.
- On March 2, 2006, the Company sold participating interests in Block 2 of the JDZ to Sinopec and Addax.
All of the proceeds from these sales were received by the Company during the quarter ending March 31, 2006.
In early 2006, ERHC entered into production sharing contract for JDZ Blocks 2,3 and 4:
- On March 14, 2006, ERHC entered into a production sharing contract with Addax Petroleum, several oil and gas companies, and the Joint Development Authority (JDA) to conduct petroleum operations in Block 4 of the JDZ.
- On the same day, ERHC entered into a production sharing contract with Addax, several oil and gas companies and the JDA to conduct petroleum operations in Block 3 of the JDZ.
- On March 15, 2006, ERHC entered into a production sharing contract with Sinopec, Addax, several oil and gas companies and the JDA to conduct petroleum operations in Block 2 of the JDZ.
Entering into production sharing contracts represented an important step in ERHC's goal of commercializing the Company’s interests in the JDZ and increasing shareholder value. The Companies' interests in the JDZ blocks represent the cornerstone for ERHC’s future growth strategy.
ERHC works closely with its consortium partners, Addax Petroleum and Sinopec Corporation. In August 2009, Addax Petroleum and Sinopec began a coordinated exploratory drilling campaign that stretched across JDZ Blocks 2, 3 and 4. A total of five wells were drilled.
In JDZ Block 2, in which ERHC has a 22 percent interest, Sinopec Corporation drilled the Bomu-1 well. In JDZ Block 3, in which ERHC has a 10 percent interest, Addax Petroleum drilled the Lemba-1 well. And in JDZ Block 4, in which ERHC has a 19.5 percent interest, Addax Petroleum has drilled three wells – Kina-1, Malanza-1 and Oki East.
The purpose of this process is to test scientific conclusions and gather additional information. To that end, a detailed evaluation of information from the five wells is underway, but at this point we cannot draw any conclusions regarding the extent and quality of the hydrocarbon systems encountered.
In February 2010, the National Petroleum Agency of São Tomé & Príncipe (ANP-STP) on behalf of the Government of São Tomé and Principe confirmed the award to ERHC of 100 percent working interests in Blocks 4 and 11 of the São Tomé & Príncipe Exclusive Economic Zone (EEZ). The confirmation follows ERHC’s exercise of rights arising from prior agreements between ERHC and São Tomé & Príncipe. In addition to the two Blocks already awarded, ERHC has rights to acquire up to a 15 percent paid working interest in two additional blocks of its choice in the EEZ. The ANP-STP has informed the Company that selection of these other blocks will take place at a later date to be determined.
In JDZ Block 2, in which ERHC has a 22 percent interest, Sinopec Corporation drilled the Bomu-1 well. In JDZ Block 3, in which ERHC has a 10 percent interest, Addax Petroleum drilled the Lemba-1 well. And in JDZ Block 4, in which ERHC has a 19.5 percent interest, Addax Petroleum has drilled three wells – Kina-1, Malanza-1 and Oki East.
The purpose of this process is to test scientific conclusions and gather additional information. To that end, a detailed evaluation of information from the five wells is underway, but at this point we cannot draw any conclusions regarding the extent and quality of the hydrocarbon systems encountered.
In February 2010, the National Petroleum Agency of São Tomé & Príncipe (ANP-STP) on behalf of the Government of São Tomé and Principe confirmed the award to ERHC of 100 percent working interests in Blocks 4 and 11 of the São Tomé & Príncipe Exclusive Economic Zone (EEZ). The confirmation follows ERHC’s exercise of rights arising from prior agreements between ERHC and São Tomé & Príncipe. In addition to the two Blocks already awarded, ERHC has rights to acquire up to a 15 percent paid working interest in two additional blocks of its choice in the EEZ. The ANP-STP has informed the Company that selection of these other blocks will take place at a later date to be determined.
