Item 8.01Other Events
1.Block 2 of the
2.ERHC and the two other companies ("Contractor Parties") with working interests in the Block are working on a Joint Operating Agreement ("JOA").
3.The JOA is an agreement that will, among other things, guide the relationship between the Contractor Parties in the operation of JDZ Block 2.
4.The JOA is pursuant to the Production Sharing Contract between the three
Contractor Parties and the
The JDA is the administrative authority of the JDZ.
5.JDZ Blocks 3 and 4
6.ERHC has been in discussion with the JDA on the introduction of new contractor parties to take up the balance of working interests not accruing to ERHC on the Block and which became available following the end of the initial exploration campaign on the Blocks. That initial exploration campaign involved the drilling of one well in Block 3 and three wells in Block 4.
8.ERHC continues to work on the issues and fallouts of dispute resolution, including multi-jurisdictional litigation and arbitration on EEZ Block 4 as well as legacy tax claims on EEZ Block 11. The costs associated with protecting ERHC's interests in dispute resolution have had a significant adverse impact on ERHC's finances.
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