ERHC Energy Inc., had announced that it has reached an agreement with Kosmos Energy, a leading independent oil and gas exploration and production company focused on frontier and emerging areas to transfer all ERHC’s rights to Block 11 of the Sao Tome and Principe Exclusive Economic Zone (EEZ) to Kosmos. The agreement has been approved by the National Petroleum Agency of Sao Tome & Principe as required in the requisite Production Sharing Contract (“PSC”) for EEZ Block 11.
“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 monetize one of our offshore holdings while preserving a financial upside in the event that exploration in Block 11 is successful.”
ERHC retains 100% of the rights to EEZ Block 4 as well as the option to take up to a 15% 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% interest in Block 11A, where the first exploration well is expected to be spudded toward the end of the first quarter of 2016. ERHC also has interests across several oil blocks in the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in Africa and the development of undeveloped and marginal oil and gas fields.
Kosmos Energy is an American international oil company founded and based in Dallas, Texas. It also maintains offices in the Bermudas, Morocco, Suriname and Ghana. It has been involved in the discovery and development of the Jubilee oil field off the coast of Ghana.
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