Chrome Signs Agreement with JDZ Authority Offshore W. Africa
Environmental Remediation Holding Corporation, DBA Chrome Energy has signed an Administration Agreement with the Nigeria-Sao Tome and Principe Joint Development Authority ("JDA"). The Administration Agreement is the formal agreement by the JDA that it will fully implement the ERHC preferential rights to acreage interests in the Joint Development Zone ("JDZ") granted to ERHC by the Democratic Republic of Sao Tome & Principe ("DRSTP") as evidenced by the Option Agreement previously announced.
Pursuant to the Administration Agreement, the JDA has agreed to take all actions necessary to enable ERHC to properly exercise and enjoy the rights granted to it pursuant to the Option Agreement.
The JDA was established by a treaty between the Federal Government of Nigeria and DRSTP in February 2001. The JDA is the governing body responsible for the implementation and enforcement of rights in the JDZ. ERHC will transact directly with the JDA in regards to its interests in the JDZ.
ERHC will increase its rights to participate in the JDZ from a total of 30% paid working interest in two blocks to a total of 125% working interest spread over six (6) exploration blocks. Additionally, ERHC will not be required to pay signature bonuses on four (4) of the blocks. In exchange, ERHC will relinquish its rights to an overriding royalty interest, share of signature bonus and share of profit oil in the JDZ.
The full details of the Option Agreement with DRSTP and the Administration Agreement with the JDA will be filed shortly with the Securities and Exchange Commission in an 8K filing.
- JDZ Opens Bids for Sao Tome Blocks (Oct 28)
- Chrome Signs Agreement with JDZ Authority Offshore W. Africa (Apr 15)
- Chrome Energy Settles Dispute with Sao Tome & Principe (Apr 10)