Environmental Remediation Holding Corporation Comments on JDZ Bid Round and Announces Results of Exclusive Analysis of Seismic Data
Environmental Remediation
Holding Corporation ("ERHC") (OTCBB:ERHC), an oil and gas exploration
company focused on the Nigeria/Democratic Republic of Sao Tome and
Principe Joint Development Zone ("JDZ") in the Gulf of Guinea offshore
West Africa, comments on the JDZ Bid Round that closed 18 October 2003
and announces results of a report prepared exclusively for ERHC by
WesternGeco, a subsidiary of Schlumberger (NYSE:SLB), on seismic data
acquired by WesternGeco in the JDZ.
The Bid Round attracted very high bids for the top blocks, namely,
US$123 million for Block 1 (ChevronTexaco), US$113 million for Block 2
(Foby Engineering) and US$100 million for Block 4 (ECL International).
ERHC submitted bids of US$60 million for each of Blocks 1 and 2. Mr.
Chude Mba, president of ERHC, said: "The results of the opening of the
bids present significant opportunities for shareholders. The top bid
by ChevronTexaco is very reassuring indeed. Depending on ExxonMobil's
decisions to participate in the JDZ, ERHC will exercise its options in
at least two of these three blocks and we are hopeful that we may be
able to increase our percentage interests through the bidding
process."
Interpretation carried out by WesternGeco has enabled the
identification of fifty-six prospective structures within Blocks 1 to
9, of which seventeen were defined as prospects and thirty-nine as
leads. Of particular interest to ERHC, however, is the recoverable
reserve potential of Blocks 1, 2 and 4. WesternGeco identified six
High Confidence prospects in these three blocks alone with estimated
cumulative recoverable reserves potential of 4.5 billion barrels of
oil. WesternGeco used reservoir parameters similar to those known from
nearby fields in Nigeria and Equatorial Guinea. Combined recoverable
reserves potential of the seventeen prospects was estimated by
WesternGeco to be 14.4 billion barrels of oil. WesternGeco partitioned
these reserves on a block-by-block basis for ERHC's exclusive use in
the bidding and option selection process relating to the JDZ licensing
round.
Mr. Mba added, "The Bid Round and contents of the report provide a
basis for continuing optimism about the future of the company. ERHC
will continue its work in maximizing its rights in the region to the
benefit of all shareholders. The report confirms what has been said by
many; that the JDZ is one of the most exciting and prospective
hydrocarbon regions available anywhere in the world today.
"The report also confirms that the energy expended over the years
on the establishment and development of this region by both
governments and our company has the potential to be very rewarding to
both countries and all participants. ERHC is pleased to be such a
significant participant in the JDZ by virtue of its option rights and
will continue to position the company to benefit from the
opportunities to be found there."
The scope of the WesternGeco report was to interpret and map
seismic data, highlight prospectivity and calculate volumetrics. It
did not include any attempt to comply with any SEC definition of
reserves. |
