ERHC Energy Inc, a publicly traded American company with oil and gas assets in Sub-Saharan Africa, released additional details of its planned exploration work programs in the Republic of Chad. ERHC’s immediate goal is to quickly identify specific leads and prospects upon which an aggressive drilling campaign can then be carried out.
ERHC is planning for exploration operations to commence in Chad by early 2013. The Company plans to focus initially on its 100 percent interest in BDS 2008 which is on trend with the Doba Basin oilfield, which in 2010 had an average daily production of 122,500 barrels of crude oil per day. Based on technical assessments made by the operator of an adjacent block, ERHC’s preliminary projections suggest the likelihood of at least three prospects with a reasonable chance of success on ERHC’s blocks. The Company’s preliminary projections of the prospects suggest the combined mean potential may be up to 63 MMBOE, with upside potential of more than 332 MMBOE. ERHC’s planned work program in 2013 and 2014 includes the following:
* Environmental Impact Assessment.
* Regional geology and field studies using existing well logs and 2D seismic data.
* Regional structure isopach and facies maps and cross-sections at key formation tops.
* Gravity and magnetic surveys to define the major structural elements.
* Airborne full tensor gravity survey to further define structural elements.
* 2D seismic data acquisition, processing and interpretation.
* Integrate interpretation of gravity, magnetic and 2D seismic for mapping of leads and prospects.
* If necessary, 3D seismic data acquisition to further delineate lead/prospect areas.
Financing
Subject to the availability of financing and favorable outcomes on the geological and geophysical work outlined, ERHC intends to fast-track exploration in the country so as to satisfy drilling obligations as quickly as possible. ERHC has a minimum commitment of one well in Chad with options for further drilling during the terms of the PSCs.
ERHC plans to finance its work programs from equity issuances to existing and new shareholders as well as from appropriate debt instruments and other arrangements. The Company is also currently in discussion with several prospective partners with a view to sharing risk and expenditure on the Chad work program.
