By OGJ editors
HOUSTON, Mar. 18 -- Democratic Republic of Sao Tome and Principe and Environmental Remediation Holding Corp., Houston, reached an agreement ERHC said will settle all outstanding disputes.
ERHC, operating as Chrome Energy Corp., agreed to relinquish rights under a May 21, 2001, memorandum of understanding in return for preferential working interests in blocks of ERHC's choice to be offered in a licensing round in the future in the Gulf of Guinea.
ERHC agreed to give up 100% of signature bonus, 100% of profit oil, and 100% of overriding royalty interest attributable to it under the 2001 MOA and forego its right of choice of blocks in the Nigeria-Sao Tome Joint Development Zone.
In return, the company will have the right to choose working interests ranging from 15% to 30% each in six exploration blocks to be offered, and the government will waive ERHC's portion of the signature bonus on four of the blocks.
The company must exercise its preferential working interest options in the six blocks within a reasonable time after the licensing round subject to approval of the JDA, according to a document ERHC filed with the US Securities & Exchange Commission.
ERHC's rights and interests in DRSTP's Exclusive Economic Zone will remain unchanged.