ERHC Energy Inc. (ticker: ERHE) is a publicly traded American company with oil and gas assets in Sub-Saharan Africa. Over the last two years, ERHC has acquired exploration blocks in Chad and Kenya to complement its existing offshore blocks in the Joint Development Zone offshore São Tome and Principé.
On November 22, 2013, Tullow Oil (ticker: TLW) announced the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has revealed an estimated 100 meters (328 feet) of net oil pay. The discovery is the fifth consecutive success by operators in the region. The nearby Ekales-1 well was reported to have a net pay zone of 60 to 100 meters (170 to 328 feet) by Africa Oil (ticker: AOI) as announced on September 26, 2013. The Twiga South 1 flowed at a cumulative rate of 5.2 MBOEPD and the Ngamia 1 is believed to hold between 200 MMBO to 250 MMBO.
ERHC Energy holds the 11-A block (100% WI), located to the northwest of recent discoveries. The block was acquired in a production sharing contract with the Kenyan government on July 9, 2012, and has not been drilled. Kenya’s Ministry of Energy began leasing out blocks in 2012 and sold 46 in all, including assets to Apache Corp. (ticker: APA), Anadarko (ticker: APC), CAMAC Energy (ticker: CAK) and StatOil (ticker: STO). On November 26, 2013, the company said initial results from an airborne Full Sensor Gravity Gradiometry (FTG) survey indicates hydrocarbon presence from the Lotikipi Basin appears to be greater than previously indicated. The survey, which began on November 18, 2013, will be completed near year-end 2013 and will cover up to 15,500 line kilometers.
The company announced a farm-out agreement on November 13, 2013, in which it will hand over operatorship and a portion of its interests. Due to Kenya’s regulations, all additional information is confidential until its government approves the agreement. ERHC said the partner is “technically and financially capable” of exploiting the play.
Bell Geospace is conducting the FTG study and has worked with companies like Anadarko (ticker: APC), BP (ticker: BP), Chevron (ticker: CVX), Conoco-Philips (ticker: COP), Devon (ticker: DVN), Noble Energy (ticker: NBL) and Shell (ticker: RDS-B).
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