ERHC Energy Inc. Signs Letter Of Intent To Farm-Out A Portion Of Its Interest In Kenya Exploration Block
HOUSTON, May 6, 2013 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, announced today that it has signed a letter of intent with an integrated international oil and gas company to farm-out part of the Company's interest in Kenya Block 11A.
The Company announced that its potential partner is a renowned multinational operator with exploration and production interests spread across several continents. The parties will now proceed to negotiate the definitive terms for a farm-out. Any agreement reached will be subject to the approvals of the respective boards and of the Government of Kenya.
In July 2012, ERHC signed a production sharing contract (PSC) with the Kenyan Government on Block 11A, an oil and gas exploration Block in northwestern Kenya. The Block is situated on the border of South Sudan to the north, Block 11B and Lake Turkana to the east and near Kenya's border with Uganda to the west. It encompasses 11,950 square kilometers or 2.95 million acres.Until a definitive farm-out agreement is entered into and approved, ERHC continues to operate Kenya Block 11A. ERHC's work program under the PSC is continuing apace. The Company is currently reviewing bids from several service companies for process management and execution of a Full Tensor Gravity Gradiometry (FTG) survey of the Block. The FTG survey is an airborne survey that aids significantly in the structural mapping of prospective hydrocarbon basins. It has been used successfully in Africa and contributed to recent oil discoveries in Uganda and Kenya. Kenya is at the intersection of two major rift systems - the Cretaceous Central African rift system and the Tertiary East Africa rift system. ERHC plans to pursue a rift margin play in Block 11A similar to those that led to recent major discoveries in East Africa.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV