ERHC's Oil and Gas Exploration Interests in Chad
The government of Chad formally awarded the company the oil block for exploration and development in June 2011, following several months of negotiation. A Production Sharing Contract was signed in July 2011. In April 2014 ERHC received the arrêté (decree) of the President of Chad giving presidential seal of approval to the Company's retention of oil exploration Block BDS 2008 and its voluntary relinquishment of the Manga and Chari-Ouest III Blocks. The ratified documents of approval are posted to the Company’s website here and here.
ERHC has 100 percent of the interest in BDS 2008. The size of the block is 41,800 square km, equal to 10.3 million acres.
One of the main oil provinces in Southern Chad is the Doba Basin and the Doseo Basin. Served by the 660 mile Chad/Cameroon Pipeline and the N’Djemena Refinery opened in 2012, the area produces more than 120,000 barrels per day. ERHC’s acreage in BDS 2008 is situated on the edges of these proven oil basins.
In 2014, ERHC announced preliminary findings from an airborne gravity/magnetic survey of BDS 2008 in Southern Chad strongly confirm the viability of leads in two focus areas identified by ERHC's technical team after careful analysis of previously collected data. The aerial survey, flown over 4,720 line kilometers, evaluated the hydrocarbon potential within ERHC's Block BDS 2008 in the area north of Esso's Tega and Maku discoveries in the Doseo basin and a second area situated east of and on trend with OPIC's Benoy-1 margin discovery in the Doba basin.
Bridgeporth conducted a precise data acquisition, and the first-order leveled raw free-air gravity and magnetic anomaly maps strongly confirm the viability of the leads. While final processing and interpretation is ongoing, ERHC is discussing proposals for the requisite follow-on seismic survey.
ERHC plans to pursue with a rift margin play. Drilling on the edge of the basins is similar to the rift margin play used by Tullow, which led to several significant discoveries, including the Ngamia #1 discovery in northwestern Kenya in 2012. In fact, comparing seismic images for ERHC’s proposed Lead 2 well location in Chad with Ngamia #1 in Kenya shows what geologists describe as a “structural analog.” There is a high degree of similarity.
The West African nation of Chad has proven oil reserves of 1.5 billion barrels with studies establishing the prospect of more discoveries. It is one of sub-Saharan Africa’s significant crude oil producers. Chad shares borders with Nigeria, Cameroun and Sudan, which all produce oil as well. According to the World Fact Book, a consortium led by two U.S. companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and are currently building a 300 km pipeline and the country's first refinery. Oil production came on stream in late 2003. Chad began to export oil in 2004.
For more information about Chad, click to Wikipedia's page about the country.
More about ERHC Energy's operations:
Republic of Kenya. ERHC has a Production Sharing Contract (PSC) with the Government of the Republic of Kenya on Block 11A in northwestern Kenya. The Block is in the vicinity of Block 10BB in which significant oil discoveries have recently been announced. East Africa has emerged in recent years as one of the most exciting, new oil provinces in the world with the discovery of over 1 billion barrels of recoverable oil in Uganda’s Block 1 (EA1), the Ngamia-1 oil discovery in Kenya, which is estimated to be bigger than the Ugandan discovery, and large gas discoveries, including the recent Zafarani find, offshore Tanzania. For more on ERHC's operations in Kenya, click here.
The Joint Development Zone (JDZ). ERHC has interests in six of the nine Blocks in the Joint Development Zone (JDZ), a 34,548 sq km area approximately 200 km off the coastline of Nigeria and São Tomé & Principe that is adjacent to several large petroleum discovery areas. For more on ERHC's operations in the JDZ, click here.
São Tomé & Principe’s Exclusive Economic Zone (EEZ). The government of São Tomé & Principe has awarded ERHC rights to participate in exploration and production activities in São Tomé & Principe’s Exclusive Economic Zone (EEZ), which encompasses an area of approximately 160,000 square km. For more on ERHC's operations in the EEZ, click here.