ERHC Consortium Proceed in Blocks 2 and 3
ERHC Energy is proceeding with consortium partner Pioneer Natural Resources in Blocks 2 and 3 of the Joint Development Zone, in which the Nigeria-Sao Tome and Principe Joint Development Authority awarded the consortium interests on May 31, 2005. The consortium originally included Devon Energy as the third consortium partner, which has since announced its decision to decline the bid award due to the low interest the company would receive as one of three consortium partners.
"We understand Devon's need for a greater interest in Blocks 2 and 3. We will miss the excellent working relationship we had underway. Pioneer and ERHC will now proceed to negotiate the Joint Operating Agreements and Production Sharing Contracts," said Ali Memon, President and CEO of ERHC.
In Block 2, the JDA awarded the consortium a 65 percent interest inclusive of ERHC's 30 percent signature bonus free interest, and in Block 3, a 25 percent interest inclusive of ERHC's 20 percent signature bonus free interest. Pioneer will be the operator for Block 2.
ERHC has accepted the awards of its pre-existing interests in the
five blocks in the Joint Development Zone.
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Company: ERHC more info
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