ERHC Energy Increases Stake in Exile Resources

Source: www.gulfoilandgas.com 7/20/2011, Location: North America

ERHC Energy Inc., a publicly traded American company with oil and gas assets in West Africa, announced it has increased its stake in Exile Resources, a Canadian independent, to approximately 7.35 percent. Exile trades on the Toronto Stock Exchange’s Venture Exchange under the trading symbol ERI. “While talk of a takeover approach is premature at this stage, ERHC’s intention is to gain the ability to participate in decision-making and explore synergistic partnerships that would be value-enhancing to our respective shareholders,” said ERHC President and CEO Peter Ntephe. “ERHC is particularly interested in Exile’s carried interest in the Akepo field in the Niger Delta, which is expected to begin producing later this year or early in the next.”

The Akepo field is located in the shallow waters of the southeastern area of Nigeria in OML 90. Exile Resources has 10 percent equity and up to a 17.5% economic interest in the field, with Oando Petroleum and Exploration Company carrying its costs. Sogenal Ltd Oil and Gas Company is the operator of the field. The Akepo-1STdiscovery is expected to produce between 2,500 and 3,000 barrels of oil per day when production begins. According to an Appraisal Report as of December 31, 2010 on the Akepo Field prepared byDeGolyer and MacNaughton Canada Limited, the estimate of net reserves ascribed to Exile are: 39Mbbl light crude and 22MMcf of natural gas on a proved reserves basis; 239Mbbl light crude and 179MMcf of natural gas on a total proved plus probable reserves; and 835Mbbl light crude and 669MMcf of natural gas proved plus probable plus possible reserves.

Earlier this month, ERHC signed a production sharing contract with the Republic of Chad on three oil blocks. The new interests include 100 percent of Block BDS 2008 and Manga, and a 50 percent interest in Chari-Ouest III. ERHC has released the sizes of each of the three blocks, noting that the new interests roughly double the Company’s exploration acreages and establish the Company as one of the largest holders of acreages among the independents operating in Africa:

- Chari-Ouest III: 4,500 square km, equal to 1,111,974 acres
- Manga: 6,477 square km, equal to 1,600,501 acres
- BDS 2008: 16,360 square km, equal to 4,042,644 acres

ERHC also holds working interests in six Blocks in the Nigeria-Sao Tome & Principe Joint Development Zone (JDZ), including JDZ Blocks 2, 3 and 4 which are operated by ERHC’s technical partners Sinopec Corporation and Addax Petroleum. Furthermore, ERHC holds 100 percent of Blocks 4 and 11 of the Sao Tome & Principe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two other EEZ Blocks.


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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