ERHC Energy Inc., a publicly-traded American company with oil and gas assets in Sub-Saharan Africa, has announced the completion of its farm-out agreement with CEPSA (Compañía Española de Petróleos, S.A.U.). The completion of the farm-out follows the receipt of final regulatory approvals from the Kenyan Government.
CEPSA has acquired a 55 percent stake in Block 11A and will operate the Block in exchange for certain considerations. ERHC retains a 35 percent interest in Block 11A.
"This is an excellent time for the entry of a renowned operator like CEPSA," said ERHC president and CEO Peter Ntephe. "We have negotiated a mutually beneficial agreement that advances Block 11A toward drilling and enhances shareholder value."
The parties will proceed with a previously announced 2D seismic survey of at least 1,000 line km of Block 11A in northwestern Kenya. The survey, which is expected to commence this spring, will be conducted by BGP Kenya Limited.
Block 11A is an oil and gas exploration Block in northwestern Kenya awarded to ERHC last year. Encompassing 11,950 sq km or 2.95 million acres, the Block 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.
In addition to its oil and gas exploration interests in the Republic of Kenya, ERHC holds interests in the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).
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