HOUSTON, July 10, 2014 (GLOBE NEWSWIRE) -- ERHC Energy Inc. (OTCBB:ERHE), a publicly traded American company with oil and gas assets in Sub-Saharan Africa, today issued an update on the Company's progress.
- Last week, ERHC President and CEO Peter Ntephe participated in ceremonies commemorating the 10 th anniversary of the National Petroleum Agency of São Tomé and Príncipe(ANP-STP), during which it was announced that ERHC and ANP-STP have concluded the final terms for the Production Sharing Contract for EEZ Block 11.
- The PSC contains three exploration phases spread over an eight-year period. The work program in the first 4-year phase commits ERHC to purchase and re-process existing data and then carry out an aeromagnetic survey over the Block. ERHC is also committed to acquiring 2,500 kms of 2D seismic data during the first phase.
- If, after the completion of Phase 1, ERHC chooses to continue its exploration work program, Phases 2 and 3 will last two years each with a well commitment during each phase.
- As was the case in Kenya and earlier in the Joint Development Zone, management's intention is to bring a technically and financially capable operating partner onboard. The Company's discussions continue with several international oil companies about partnerships in EEZ Block 11. Some of those discussions are on the possibility of a 'right-to-earn' partnership where the operator commits to carrying only one aspect of the work program in return for a pre-determined interest in the PSC if the results of that aspect convince the operator to commit to the rest of the work program.
- The PSC for EEZ Block 11 will become effective in due course following the receipt of certain legislative and administrative approvals and the official Portuguese translation of the PSC.
- The Company has posted a presentation Mr. Ntephe delivered at the ceremony at http://erhc.com/presentations/. It provides an extensive overview of the prospectivity of EEZ Block 11, including evidence of what the Company's technical team believes could be a high quantity of hydrocarbon resources.