ERHC Energy (ERHC) has signed an agreement to transfer all its rights to Block 11 of the São Tomé and Principe Exclusive Economic Zone (EEZ) to Kosmos Energy (Kosmos)
“Given the difficult global environment for doing deals, particularly for deep-offshore assets in frontier areas, we are very pleased to have concluded the agreement with Kosmos,” said ERHC president and CEO, Peter Ntephe. “The agreement enables us to immediately monetise one of our offshore holdings while preserving a financial upside in the event that exploration in Block 11 is successful,” he added.
The agreement has been approved by the National Petroleum Agency of Sao Tome & Principe (ANP-STP) as required in the requisite Production Sharing Contract ('PSC') for EEZ Block 11.
The Africa-focussed US-headquartered company retains 100 per cent of the rights to EEZ Block 4, as well as the option to take up to 15 per cent working interest in each of two other unlicensed EEZ blocks of its choice. ERHC and the ANP-STP have agreed in principle to terms of a PSC for Block 4. In Kenya, ERHC holds a 35 per cent interest in Block 11A, where the first exploration well is expected to be spudded toward the end of Q1 2016.
ERHC also has interests across several oil blocks in the Nigeria - São Tomé and Príncipe Joint Development Zone. In Chad, ERHC is accepting tender proposals for a 2D seismic acquisition programme for Block BDS 2008.
