There are a few new details about the SEDCO 702 submersible units to be used by Sinopec, capable of drilling in water depths of 6,562feet and to 25,000 feet and as deeply as 25,000 feet.
Chief Operating Officer Updates ERHC Energy Inc. Shareholders
Source: ERHC Energy Inc.
On Wednesday July 29, 2009, 4:28 pm EDT
Companies:Erhc energy inc.
HOUSTON, TX--(Marketwire - 07/29/09) - ERHC Energy Inc. (OTC.BB:ERHE - News), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, today issued the following update on Company activities from Peter Ntephe, chief operating officer.
To ERHC Shareholders:
I am pleased to provide a brief update regarding the company's recent progress.
In recent months, ERHC's management has concentrated our time, energies and resources on developing our assets in the Joint Development Zone (JDZ). We expect August will be a history-making month for the Company as the operators of two JDZ Blocks in which ERHC has interests plan to commence exploratory drilling.
Sinopec Corp., the operator of JDZ Block 2, in which ERHC has a 22 percent interest, has authorized us to disclose that it plans to drill the Bomu Prospect using the SEDCO 702 semi-submersible drilling unit. Owned by Transocean, Inc., the SEDCO 702 is capable of operating in moderate environments and water depths up to 6,562 feet and drilling depths of up to 25,000 feet. While it is important to understand that drilling plans are subject to change, Sinopec predicts the SEDCO 702 might be available to begin exploration in JDZ Block 2 around August 20, 2009.
Addax Petroleum, operator of JDZ Block 4, in which ERHC holds a 19.5 percent interest, announced earlier this week that it also expects to begin exploratory drilling in August. Addax has arranged to take possession of the Deepwater Pathfinder in the weeks to come and begin a four-well drilling campaign starting with the Kina Prospect.
In JDZ Block 3, in which ERHC holds 10 percent interest, ERHC expects the Operator to make an announcement regarding significant and positive progress toward drilling in due course. The JDA has approved drilling at the Lemba Prospect.
These are exciting developments and everyone associated with these efforts has high expectations. Earlier this year, ERHC reported the findings of an independent assessment of the Company's unrisked and risked prospective resources prepared by independent engineering firm Netherland Sewell and Associates, Inc. (NSAI). The NSAI estimate of ERHC's prospective resources (P50) is summarized in the following table:
Block Unrisked Prospective Resources Risked Prospective Resources
Oil (MBBL) Gas (MMCF) Oil (MBBL) Gas (MMCF)
--------- --------- --------- ---------
JDZ 2 77,007 93,948 38,334 47,908
JDZ 3 27,343 32,953 8,751 10,543
JDZ 4 231,667 245,308 88,437 86,282
Total 336,017 372,210 135,523 144,733
As drilling in the JDZ approaches, we reiterate that that disclosures relating to drilling and other fundamental steps are initiated or authorized by the operator or the JDA as the case may be. ERHC, like the other parties in the JDZ, is bound to comply with this procedure.
Finally, work is well underway on ERHC's third quarter financial report for the period that ended June 30th. We have scheduled an Investor Conference Call on August 12, 2009 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). To participate, please dial 888-721-1403 (domestic) or 706-758-1074 (international) five to ten minutes before the call begins and reference the pass code 22567813.
A simultaneous live Webcast of the call will be available over the Internet and will be accessible by going to https://www.livemeeting.com/cc/erhcenergy/join and entering the Meeting ID: SQ8PR4 and Entry Code: kNs~f-5.
A replay of the call will be available from Wednesday, August 12, 2009 at 10:00 a.m. Eastern Time through August 19, 2009 by dialing 888-721-1403 (domestic) or 706-758-1074 (international) five to ten minutes before the call begins and reference the pass code 22567813. In addition, a replay of the Webcast will be available at www.erhc.com.
ERHC Energy remains focused on enhancing value for the benefit of its shareholders. We continue to count on your trust and support.
Chief Operating Officer