This follows the completion of the 2D seismic program last month which will shape up the basis for continuation of exploration under the second phase.

 

Under the second phase of exploration, which lasts a further two years from the end of the first phase partner CEPSA Kenya Limited (a wholly owned affiliate of Compañía Española de Petróleos, S.A.U. (CEPSA)) and ERHC are required to either acquire 3D seismic or proceed directly to drilling one exploration well during the additional two-year exploration period.

 

On the way forward ERHC says it is focusing on fundraising activities of its various exploration programs in sub-saharan Africa including the current issuance of convertible notes to fund the Company’s exploration work program in Chad’s Block BDS 2008.

 

ERHC adds it is also in discussions with private equity funds regarding potential strategic investment.

 

“These talks are preliminary in nature but management believes a significant private-equity investor could represent an important source of funding to help meet the Company’s long-term obligations,” states Daniel Keeney, ERHC’s investor relations representative.

 

ERHC also has interest in São Tomé and Príncipe Exclusive Economic Zone (EEZ) Block 11 where it is working on the budget for the first 4-year exploration phase

Source : OIL NEWS KENYA