Sinopec wins JDZ license extension

ERHC Energy says the Joint Development Authority (JDA) has approved a six-month extension of Exploration Phase I in Joint Development Zone (JDZ) block 2 in the Gulf of Guinea.

Offshore staff

HOUSTON -- ERHC Energy says the Joint Development Authority (JDA) has approved a six-month extension of Exploration Phase I in Joint Development Zone (JDZ) block 2 in the Gulf of Guinea.

The extension will allow operator Sinopec to complete all studies needed for further exploration.

Last month, ERHC supported the application by Sinopec, its technical partner, to enter into Exploration Phase II pending completion of these studies. Instead, the parties reached agreement with the JDA to extend Phase I -- a similar decision was delivered in September to the participants in JDZ blocks 3 and 4.

ERHC has 22% of JDZ block 2, 10% of JDZ block 3, and 19.5% of JDZ block 4. It says the contracting parties’ commitments for Phase 1 for all three blocks are complete with the drilling of five wells in the permits between August 2009 and January 2010.

Gas was discovered in at least three of the wells.

10/15/2010

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