The Nigeria São Tomé and Príncipe Joint Development Zone (JDZ) is located in the deepwater Niger Delta.  In excess of 12 billion bbls of recoverable oil reserves have been discovered to date in this deepwater province with an exploration success rate better than 50%. 

The block is adjacent to major Nigerian discoveries including the Akpo discovery (estimated at 600MM bbls oil plus 500MM bbls discovery potential). The water depth ranges from 1,500 to 2,200 metres.

JDZ Block 1 is operated by Chevron, and EER originally held a 4.41% equity interest through its joint venture with Dangote Oil & Gas Ltd. Afren has assumed EER’s share of this joint venture, but EER remains entitled to receive up front payments based on reserves approved for development.

The block covers an area of 704 sq km. 13 exploration prospects, with multi-billion barrel potential, were identified by ECL in a non-exclusive study in 2003. The first well on the block, Obo-1, was completed in March 2006 and discovered 145ft of net hydrocarbon pay. The positive result from this well has increased the valuation of the block and the likelihood of a commercial development. The next exploration well is scheduled for late 2007 or early 2008, depending upon rig availability.