Sep 30, 2010 09:10 ET
ERHC Energy Inc. Announces the Extension of Exploration Phase I in JDZ Blocks
HOUSTON, TX--(Marketwire - September 30, 2010) - ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of West Africa, today announced that the Joint Development Authority ("JDA") has approved a 6-month extension of Exploration Phase I in Joint Development Zone Blocks 3 and 4. The extension will enable the contracting parties to complete all studies needed for further exploration in the Blocks.
Earlier this month, ERHC supported Addax Petroleum, ERHC's technical partner and the operator of JDZ Blocks 3 and 4, in applying to enter into Exploration Phase II pending the completion of the studies. Instead, agreement was reached with the JDA to further extend Exploration Phase I to enable completion of the studies before commencement of Phase II.
"To date, there has been a tremendous amount of work carried out to update volumetrics of the resources, analyze geochemical samples, interpret sample analysis and reevaluate play concepts, but more time is required to conclude the study program," said ERHC CEO Peter Ntephe. "ERHC acknowledges the commitment and efforts of the Operator as well as the continued support and cooperation of the JDA."
The outcome of a similar dialogue between the contracting parties and the JDA on JDZ Block 2 is expected shortly.
ERHC has 22 percent interest of JDZ Block 2, 10 percent interest of JDZ Block 3 and 19.5 percent interest of JDZ Block 4. The contracting parties' commitments on Exploration Phase I of JDZ Blocks 2, 3 and 4 were successfully met with the drilling of five wells in the three blocks between August 2009 and January 2010. All the wells were completed within time and according to budget. Natural gas was discovered in at least three of the wells. Information about each of the Blocks is available at www.erhc.com/jdz.
Meanwhile, friendly rival HYPD (HDY), the feisty independent startup that has been struggling for years to develop prospective waters south of ours, has soared in recent days. The stock was selling in the $0.50 range just a year or so back, and is now in the $2.20 range.