Addax Petroleum Announces Gabon Acquisition
Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC), an international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East, today announced that it has entered into an agreement to acquire a 50 per cent interest in the Epaemeno license area from BowLeven plc ("BowLeven") who retains a 50 per cent interest. Addax Petroleum will become operator of the Epaemeno license area which is immediately north of the Corporation's Maghena and Awoun license areas, onshore Gabon. The acquisition is subject to the consent of the Government of Gabon.
Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "The addition of the Epaemeno license area to our exploration portfolio in Gabon is in line with our strategy of building out from our existing properties and operating infrastructure. We are delighted to partner with BowLeven and, as the intended operator of Epaemeno, believe that exploration activity can be integrated effectively with our ongoing development and exploration activities in Gabon."
Under the terms of the acquisition, Addax Petroleum, in return for a 50 per cent interest in the Epaemeno license area, is obligated to pay the first US$10 million of BowLeven's share of exploration costs and, in the event a commercial development, the first US$8 million of BowLeven's share of development costs.
The Epaemeno license area covers approximately 331,100 acres (gross) and lies immediately north of the Maghena and Awoun license areas, onshore Gabon. Addax Petroleum holds a 92.5 per cent interest in the Maghena license area and a 40 per cent interest in the Awoun license area. The Maghena license area is operated by Addax Petroleum and contains the producing Tsiengui oil field. The Epaemeno license area production sharing agreement was awarded in late 2004. Limited exploration activity by previous companies has taken place on the Epaemeno license area including drilling of four unsuccessful wells between 1976 and 1991 and the acquisition of approximately 1,000 kilometres of 2D seismic data. Work is currently being undertaken to re-process and re-interpret the 2D seismic data ahead of further seismic acquisition and/or exploration drilling.
About Addax Petroleum
Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and has increased its crude oil production from an average of 8,800 bbl/d for 1998 to an average of approximately 108,000 bbl/d for the fourth quarter of 2006. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com .