Exploration Commences in Joint Development Zone
August 26 2009 - 6:13AM
UK Regulatory
TIDMAXC
RNS Number : 0387Y
Addax Petroleum Corporation
26 August 2009
ADDAX PETROLEUM COMMENCES EXPLORATION CAMPAIGN
IN JOINT DEVELOPMENT ZONE
Drilling first deepwater well at Kina Prospect in JDZ Block 4 licence area
Calgary, August 26, 2009 - /CNW/ - Addax Petroleum Corporation ("Addax
Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) today announced receipt
of Transocean's Deepwater Pathfinder drillship and commencement of its
exploration drilling campaign in the deepwater Gulf of Guinea with the spudding
of the "Kina" prospect in Block 4 of the Nigeria Sao Tome and Principe Joint
Development Zone ("JDZ").
Commenting, Addax Petroleum's Vice-Chairman, Jean Claude Gandur, said: "The
commencement of Addax Petroleum's deepwater exploration campaign is a very
exciting time for our organization due to our extensive portfolio of prospects
which, if successful, have the potential to significantly enhance the
Corporation's recoverable reserves. In addition, Addax Petroleum has recently
acquired an additional 51% interest in Block 3 of the JDZ and will be the
Operator. The acquisition of this additional interest in the JDZ intensifies
our foothold in this world class exploration region and significantly enhances
the economics of our position in JDZ Block 3 as it allows Addax Petroleum to
aggressively explore this prolific region with a sustained drilling strategy."
The Corporation plans to drill the "Kina" and "Lemba" prospects in JDZ Blocks 4
and 3, respectively, with the first two slots on the Deepwater Pathfinder
drillship. In addition, Sinopec JDZ Block 2 Limited has notified the Nigeria Sao
Tome and Principe Joint Development Authority of its intent to commence its
exploration drilling in August 2009 on JDZ Block 2 where Addax Petroleum holds
an interest.
Addax Petroleum has a deepwater exploration portfolio that consists of interests
in five licence areas comprised of OPL291, offshore Nigeria, and Blocks 1, 2, 3
and 4 in the JDZ. As at December 31, 2008, total best estimate unrisked
prospective oil resources for identified prospects in the deepwater Gulf of
Guinea are 3,042 MMbbl (1,146 MMbbl risked), of which the Corporation's working
interest was 1,359 MMbbl (493 MMbbl risked). When adjusted for the additional
51% interest acquired in JDZ Block 3 the Corporation's working interest
increases to 1,498 MMbbl (538 MMbbl risked).
About Addax Petroleum
Addax Petroleum is an international oil and gas exploration and production
company with a strategic focus on West Africa and the Middle East. Further
information about Addax Petroleum is available at www.addaxpetroleum.com or at
www.sedar.com.
Reader Advisory Regarding Forward-Looking Information
Certain statements contained in this news release, including statements related
to drilling timetables, business strategy and goals, development plans and
schedules and dates that areas may come on-stream, government and partner
approvals and statements that contain words such as "may", "will", "would",
"could", "should", "anticipate", "believe", "intend", "expect", "plan",
"estimate", "budget", "outlook", "propose", "project", and statements relating
to matters that are not historical fact constitute forward-looking information
within the meaning of applicable Canadian securities legislation.
Forward-looking information in this news release is subject to known and unknown
risks and uncertainties attendant with oil and gas operations, and other
factors, which include, but are not limited to: imprecision in resources
estimates; discovery of prospective resources and their ultimate classification
as reserves and recovery of said reserves; commodity prices; general economic,
market and business conditions; industry capacity; competitive action by other
companies; refining and market margins; the ability to produce and transport
crude oil to markets; weather and climate conditions; results of exploration and
development drilling and other related activities; the ability of suppliers to
meet commitments; actions by governmental authorities, including increases in
taxes; changes in environmental and other regulations; international political
events; and expected rates of return. More specifically, production may be
affected by exploration success, start-up timing and success, facility
reliability, reservoir performance and natural decline rates, water handling and
drilling progress. Capital expenditures may be affected by cost pressures
associated with new capital projects, including labour and material supply,
project management, drilling rig rates and availability and seismic costs.
In this news release the Corporation has made assumptions with respect to the
following:
* estimates of prospective oil resources;
* timing and amount of future production, forecasts of capital expenditures and
the sources of financing thereof;
* the amount, nature, timing and effects of capital expenditures;
* plans for drilling wells and the timing and location thereof;
* expectations regarding the negotiation and performance of contractual rights;
* operating and other costs;
* business strategies and plans of management; and
* anticipated benefits and enhanced shareholder value resulting from prospect
development.
The Corporation's actual results could differ materially from those anticipated
in these forward-looking statements if the assumptions underlying them prove
incorrect, or if one or more of the uncertainties or risks described above
materializes. Risk factors are discussed in greater detail in filings made by
Addax Petroleum with the Canadian provincial securities commissions.
Readers are strongly cautioned that the above list of factors affecting
forward-looking information is not exhaustive. Further, forward-looking
statements are made as at the date they are given and, except as required by
applicable law, Addax Petroleum does not intend, and does not assume any
obligation, to update any forward-looking statements, whether as a result of new
information or otherwise. The forward-looking statements contained in this news
release are expressly qualified by this advisory.
Reader Advisory Regarding Prospective Oil Resources
Estimates of prospective oil resources in this news release are as at December
31, 2008, as set out in Addax Petroleum's Annual Information Form dated March 4,
2009 (AIF) which can be found at www.sedar.com or www.addaxpetroleum.com. The
adjusted figure for best estimate prospective oil resources is as at December
31, 2008, based on the increased working interest described above.
Prospective oil resources are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from undiscovered accumulations by
application of future development projects. The prospective oil resources
indicate exploration opportunities and development potential in the event a
commercial discovery is made and should not be construed as reserves or
contingent resources. There is no certainty that any portion of the resources
will be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the resources.
All resource quantities disclosed in this news release are based on "best
estimate". Further information on high and low estimates for prospective
resources can be found in Addax Petroleum's AIF.
For additional information, please contact:
+-------------------------------------------+---------------------------------------+
| Mr. Craig Kelly | Mr. Nick Cowling |
| Investor Relations | Press Relations |
| Tel.: +41 (0) 22 702 95 68 | Tel.: +1 (416) 934 80 11 |
| craig.kelly@addaxpetroleum.com | nick.cowling@cossette.com |
| Mr. Chad O'Hare | Mr. Mark Antelme |
| Investor Relations | Press Relations |
| Tel.: +41 (0) 22 702 94 10 | Tel.: +44 (0) 20 3178 6242 |
| chad.o'hare@addaxpetroleum.com | mark.antelme@pelhampr.com |
| Ms. Marie-Gabrielle Cajoly | |
| Press Relations | |
| Tel.: +41 (0) 22 702 94 44 | |
| marie-gabrielle.cajoly@addaxpetroleum.com | |
+-------------------------------------------+---------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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