Wednesday, February 08, 2006

ERHC Press Release: It's Addax In Block 3, Sinopec In Block 2

Surprising us once again as the price continues to climb upwards in heavy trading, ERHC Energy released a much awaited statement on Blocks 2 and 3, naming Sinopec its choice of operator in Block 2 and Addax its joint venture partner in Block 3.

ERHC said it also believes "there will be no delay" in meeting deadlines for the signing of Joint Operating Agreements and Production Sharing Contracts on the Nigeria-Sao Tome and Principe Joint Development Authority timeline.

The news caused another spurt of buying, with pages of trades rolling by without Sells on ADVFN, and at 2:47 the price hovered near $.47 after reaching $0.48 minutes before. Volume is 3,404,080 shares.

One of the unusual aspects of trading in this stock is that Market Makers are content to get less than the market will pay, and thus keep the price in check for reasons known only to them.

Here is the ERHC press release:

ERHC Energy Inc. Announces Replacements of Pioneer Natural Resources

Business Editors / Energy Editors

HOUSTON--(BUSINESS WIRE)--Feb. 8, 2006--

ERHC Energy Inc. (OTCBB:ERHE) is pleased to announce that it has entered into a Memorandum of Understanding relating to Block 2 of the JDZ.

A Consortium with Sinopec International Petroleum and Addax Petroleum has been formed under the terms of the MOU.

An additional MOU was entered into by ERHC Energy Inc. and Addax Petroleum in Block 3 of the JDZ.

ERHC anticipates that there will be no delay in meeting the JDA timeline for the execution of the JOA and PSC for Blocks 2 & 3 of the JDZ.

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