Signature Bonuses Trigger $45 Million In Payments For ERHC

A JDA press release says Nigeria and Sao Tome have received $145 million in Joint Development Zone signature bonus fees for rights to Blocks 2, 3 and 4. The payments also triggered payments of some $45 million to ERHC Energy and an 8 percent run-up in share price:

RE: THE 2ND (2004) LICENSING ROUND OF
THE NIGERIA-SAO AND PRINCIPE JOINT DEVELOPMENT ZONE.

PAYMENT OF SIGNATURE BONUS IN RESPECT OF JDZ BLOCKS 2, 3,
AND 4 BY CONTRACTOR PARTIES.

Pursuant to Clauses 2.1 and 30.1(a) of the Production Sharing Contracts (PSC) signed between the JDA and Contractor Parties in respect of Blocks 2, 3 & 4 of the JDZ, the JDA, on behalf of the State Parties, has received from the Contractor Parties, the total sum of U.S. $145,649,647.00 (one hundred and forty-five million, six hundred and forty-nine thousand, six hundred and forty-seven United States’ Dollars) as Signature Bonus payments.

NIGERIA-SAO TOME & PRINCIPE
JOINT DEVELOPMENT AUTHORITY
ABUJA, NIGERIA.
May 3, 2006