ERHC and the National Petroleum Agency of Sao Tome and Principe (ANP-STP) have agreed to start Production Sharing Contract (PSC) negotiations in mid-November. ERHC and the ANP-STP mutually agreed upon the basic parameters for conducting negotiations related to the Company's two exploration Blocks in the São Tomé and Príncipe Exclusive Economic Zone (EEZ).
ERHC has a 100 percent working interest in Blocks 4 and 11 of the EEZ free of signature bonuses.
"We are delighted to be in receipt of formal invitation from the ANP-STP to begin PSC negotiations in mid-November," said Peter Ntephe, ERHC's President/CEO. "ERHC believes the EEZ has the necessary components of a successful petroleum system and we look forward to concluding the PSC process."
According to the timetable set by the ANP-STP, ERHC's negotiations are scheduled to follow those of Oranto Petroleum, which has interests in EEZ Block 3, and Equator Exploration Limited, which has interests in EEZ Blocks 5 and 12. The ANP-STP announced the signing of a PSC with Oranto for EEZ Block 3 on October 13, 2011.
"We congratulate the ANP-STP and the government of São Tomé and Príncipe, under the leadership of His Excellency, Patrice Trovoada, for this landmark achievement," said Mr. Ntephe. "The government, by word and deed, has demonstrated its determination to accelerate the oil exploration in São Tomé and Príncipe."
Seismic data for EEZ Blocks 4 and 11 contain highly prospective structures and they are situated close to the proven hydrocarbon systems in the adjacent territorial waters of Gabon, Equatorial Guinea, Nigeria and Cameroon.
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