Standards, second to none.
An Integrity Intercontinental Group Company.
"Setting the pace in the Nigerian and Global Crude Oil, Gas and
Petrochemicals industry for over 15 years by educating, teaching, revealing deep truths,
connecting and providing turnkey solutions for Crude Oil, Gas and the
Petrochemicals industry's users globally.
Delivering Genuine Global Crude Oil, Gas
& Petrochemicals Solutions & Transactions To Our World.
NIGERIAN CRUDE OIL AND GAS.
Addax Awarded Additional Interest in Deep Water Exploration License in
Joint Development Zone
Addax Petroleum Corporation announced that it has been awarded an additional
7.2 percent participating interest in Block 4 of the Nigeria/Sao Tome and
Principe Joint Development Zone (“JDZ”) by an independent arbitration
tribunal. The award increases Addax Petroleum’s interest in the license area
from 38.3 percent to 45.5 percent. Addax Petroleum is also the operator of
Block 4.
Commenting, Jean Claude Gandur, President and Chief Executive Officer of
Addax Petroleum said: "This award further enhances our leading position in
this world class exploration region. I am very excited about the prospective
oil resources of Addax Petroleum’s entire deepwater portfolio and I am
looking forward to launching our high impact drilling campaign. Due to our
interests across four JDZ license areas, a focused drilling strategy will be
undertaken to include a consecutive exploration campaign of up to 10 wells
across the region to demonstrate the full potential of these assets. I
believe these exploration assets will be an important contributor to the
growth of the company and will deliver value to our shareholders.”
In 2007, Addax Petroleum and ERHC Energy Inc. entered into arbitration
proceedings in respect of a 9 percent participating interest in JDZ Block 4
that had been committed to a third party. When that party failed to fulfill
its obligations, the 9 percent reverted to Addax Petroleum and ERHC. Under
the arbitration proceedings, Addax Petroleum claimed entitlement to 7.2
percent of the 9 percent interest, subject to the carried costs associated
with the balance, being the 1.8 percent to which ERHC was entitled. A panel
of the London Court of International Arbitration confirmed that Addax
Petroleum is entitled to the 7.2 percent additional interest for no
additional monetary consideration beyond the $18 million previously paid by
Addax Petroleum to ERHC. Addax Petroleum will continue to carry the costs
associated with ERHC’s 19.5 percent interest in JDZ Block 4.
Addax Petroleum has contracted to commence drilling operations in JDZ Block
4 in the fourth quarter of 2008, but believes that the drilling rig will not
be delivered until the second half of 2009. In the interim, the Corporation
continues to seek a rig of opportunity to drill the 458 MMbbl Kina prospect
in JDZ Block 4 as early as the fourth quarter of 2008.
The JDZ was established in 2001 following the ratification of a formal
bilateral treaty between Nigeria and the island nation of Sao Tome and
Principe. The JDZ is located approximately 200 kilometres offshore Nigeria
and is adjacent to deepwater areas where several large petroleum discoveries
have been made. As at December 31, 2007, NSAI estimates the total best
estimate un-risked prospective oil resources for identified prospects in the
JDZ to be 2,323.1 MMbbl (990.5 MMbbl risked), of which the Corporation’s
working interest is 726.6 MMbbl (313.0 MMbbl risked), and the total best
estimate unrisked prospective oil resources for the Kina Prospect to be
458.0 MMbbl (172.5 MMbbl risked).
