ERHC Energy Inc, a publicly traded American company with oil and gas assets in West Africa, announced that it has signed a production sharing contract (PSC) on the three oil blocks formally awarded to the company last week by the Republic of Chad. ERHC has 100 percent of the interest in two blocks -- BDS 2008 and Manga -- and a 50 percent interest in the third, Chari-Ouest Block 3.
Two of the Blocks, BDS 2008 and Chari-Ouest Block 3, lie next to the Doba Basin oilfield, which in 2010 had an average daily production of 122,500 barrels of crude oil per day. The Manga block is north of Lake Chad, along the border with Niger.
ERHC CEO Peter Ntephe attributed the successful signing of the PSC to commendable work by ERHC's negotiating team of legal, technical and financial experts led by Sylvan Odobulu, ERHC's financial officer.
"The announcement of the production sharing contract illustrates ERHC's commitment toward the enhancement of shareholder value," Ntephe said. "We are proud of attaining yet another remarkable milestone as we add to our exploration acreages in Africa. We look forward to working quickly and closely with the authorities in Chad toward a mutually beneficial exploration program."
The West African Republic of Chad is one of sub-Saharan Africa's significant crude oil producers. It shares borders with Nigeria and Libya, which are Africa's largest oil and gas producers, and with Cameroon and Sudan, which both produce oil. Chad has proven oil reserves of 1.5 billion barrels with studies establishing the prospect of more discoveries.
Apart from its new holdings in Chad, ERHC holds working interests in six Blocks in the Nigeria-Sao Tomé & Principe Joint Development Zone (JDZ). ERHC also holds 100 percent of Blocks 4 and 11 of the Sao Tomé & Principe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two other EEZ Blocks.
