ERHC to farmout part of interest in Kenya to CESPA

Feb. 10, 2014
ERHC Energy Inc., Houston, has reached a farmout agreement with Spain’s Compania Espanola de Petroleos SA (CEPSA) for 55% stake in Block 11A in northwestern Kenya.

ERHC Energy Inc., Houston, has reached a farmout agreement with Spain’s Compania Espanola de Petroleos SA (CEPSA) for 55% stake in Block 11A in northwestern Kenya.

CEPSA will operate the block in exchange for certain considerations, while ERHC will retain 35% interest.

The companies said they will proceed with a previously announced 2D seismic survey of at least 1,000 line-km of Block 11A. The survey, conducted by BGP Kenya Ltd., is expected to commence this spring.

The block, which was awarded to ERHC last year, encompasses 11,950 sq km and is situated on the border of South Sudan to the north, Block 11B and Lake Turkana to the east, and near Kenya’s border with Uganda to the west.

It was reported last May that an undisclosed international integrated oil and gas company had signed a letter of intent to take a farmout the block (OGJ Online, May 6, 2013).

In June, ERHC let a contract to Bell Geospace to conduct an airborne full tensor gravity gradiometry survey (OGJ Online, July 10, 2013), which commenced in November (OGJ Online, Nov. 18, 2013).

ERHC also holds interests in the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone, and the Nigeria-Sao Tome and Principe Joint Development Zone.