An article in Portuguese from the Lusa news agency of Portugal says this morning that the attorney general of Sao Tome and Principe will lead an investigation into allegations of corruption associated with the award of Blocks 2 through 6 in the Nigeria-Sao Toime and Principe Joint Development Zone last May.
The tiny nation-state's government is largely controlled by former communists and major oil companies like ExxonMobil and Chevron, both of which face indictments in corruption charges stemming from their activities in Equatorial Guinea.
The news, as read in a poorly-translated machine version of the story, helped to drive down the price of ERHC Energy (OTC BB symbol: ERHE), the tiny Houston-based, Nigerian-controlled firm that was the biggest winner in the May 31 awards.
At 1pm, in slow trading, ERHE was off a cent at $0.39. Generally, that price has been an attractive buy-point for accumulators awaiting the completion of PSCs and Joint Operating Agreements, along with the payment of signature bonuses, between now and the end of the year, and the start of drilling in oil-rich waters of the Gulf of Guinea in the first quarter of 2006.
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