Addax Petroleum Announces Acquisition in Gabon
02/09/2008 20:48
PR Newswire
CALGARY, Canada, September 2 /PRNewswire/ --
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Canada Addax Petroleum Corporation ("Addax Petroleum" or the
"Corporation") (TSX:AXC and LSE:AXC), today announced that it has acquired a
50 per cent interest in the Gryphon Marin license area subject to final
Government of Gabon approval. Addax Petroleum will become operator of the
Gryphon Marin license area which is immediately west of the Corporation's
Iris Marin and Ibekelia license areas and immediately north of the
Corporation's Etame Marin license, offshore Gabon.
Commenting today, Addax Petroleum's President and Chief Executive
Officer, Jean Claude Gandur, said: "We are pleased to acquire a significant
interest in this vast license area which increases the total net acreage held
by Addax Petroleum by almost fifty per cent. The addition of the Gryphon
Marin license area to our first-class exploration portfolio in Gabon is
consistent with our strategy of expanding our existing properties and
operating infrastructure. We believe that our exploration activity at Gryphon
Marin will be integrated effectively with the activities on our adjoining
license areas and provide for continued momentum in our ongoing development
and exploration program in Gabon."
The Gryphon Marin license area is subject to two separate options held by
a third party to obtain a 53 per cent interest in two specified areas in the
central and northern end of the Gryphon Marin license covering 1,550 km(2)
and 2,725 km(2), respectively. In order to exercise their options, the third
party is required to fund and acquire 3D seismic covering the option area and
participate pro rata in the drilling of an exploration well within the option
area. If the options are exercised by the third party Addax Petroleum's
interest in the respective option areas would be reduced to 23.5 per cent,
although the Corporation would continue as operator of the respective option
area through the exploration phase. The Gryphon Marin license area is also
subject to a 10 per cent back-in right held by the Government of Gabon for
any development areas.
The Gryphon Marin license area covers a gross area of approximately
2,409,200 acres (9,750 km(2)) and lies immediately west of the Iris Marin and
Ibekelia license areas, and immediately north of the Corporation's Etame
Marin license, offshore Gabon. Addax Petroleum holds a 51.33 per cent
interest in the Iris Marin license area and a 31.36 per cent interest in the
Etame Marin license area. The Gryphon Marin license area is in an exploration
period ending in November 2009 and carries a commitment to drill two wells.
As part of the acquisition, the Corporation is inheriting a full suite of
seismic data including approximately 3,900 km(2) of modern 3D seismic and
2,100 km of 2D seismic.
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 136,000 bbl/d for the first
half of 2008. Further information about Addax Petroleum is available at
http://www.sedar.com, www.londonstockexchange.com or the Corporation's
website, http://www.addaxpetroleum.com.
Legal Notice - Forward-Looking Statements
Certain statements in this press release constitute forward-looking
statements under applicable securities legislation. Such statements are
generally identifiable by the terminology used, such as "anticipate",
"believe", "intend", "expect", "plan", "estimate", "budget", "outlook",
"may", "will", "should", "could", "would" or other similar wording.
Forward-looking information in this news release includes, but is not limited
to, change in operatorship of the subject license area, reference to business
strategy and goals, future capital and other expenditures, including payment
and carry terms, drilling plans, the submission of development plans, seismic
activity, project development schedules and results, results of exploration
activities and dates by which certain areas may be developed or may come
on-stream, expiration of the third party options, royalties payable,
financing and capital activities and government approvals. By its very
nature, such forward-looking information requires Addax Petroleum to make
assumptions that may not materialize or that may not be accurate. This
forward-looking information is subject to known and unknown risks and
uncertainties and other factors, which may cause actual results, levels of
activity and achievements to differ materially from those expressed or
implied by such information. Such factors include, but are not limited to:
risk of partner pre-emption, prices of oil and natural gas; general economic,
market and business conditions; industry capacity; competitive action by
other companies; fluctuations in oil prices; refining and marketing margins;
the ability to produce and transport crude oil and natural gas to markets;
the effects of weather and climate conditions; the results of exploration and
development drilling and related activities; fluctuation in interest rates
and foreign currency exchange rates; the ability of suppliers to meet
commitments; actions by governmental authorities, including increases in
taxes; decisions or approvals of administrative tribunals; changes in
environmental and other regulations; risks attendant with oil and gas
operations, both domestic and international; international political events;
expected rates of return; and other factors, many of which are beyond the
control of Addax Petroleum. More specifically, production may be affected by
such factors as 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.
These factors are discussed in greater detail in filings made by Addax
Petroleum with the Canadian provincial securities commissions.
Readers are cautioned that the foregoing list of important factors
affecting forward-looking information is not exhaustive. Furthermore, the
forward-looking information contained in this press release is made as of the
date of this press release and, except as required by applicable law, Addax
Petroleum does not undertake any obligation to update publicly or to revise
any of the included forward-looking information, whether as a result of new
information, future events or otherwise. The forward-looking information
contained in this press release is expressly qualified by this cautionary
statement.
For further information: Mr. Patrick Spollen, Investor Relations, Tel:
+41(0)22-702-95-47, patrick.spollen@addaxpetroleum.com; Mr. Craig Kelly,
Investor Relations, Tel: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com;
Ms. Marie-Gabrielle Cajoly, Press Relations, Tel: +41(0)22-702-94-44,
marie-gabrielle.cajoly@addaxpetroleum.com; Mr. Nick Cowling, Press Relations,
Tel: +1-416-934-8011, nick.cowling@cossette.com; Mr. James Henderson, Press
Relations, Tel: +44(0)20-7743-6673, james.henderson@pelhampr.com; Mr.
Alisdair Haythornthwaite, Press Relations, Tel: +44(0)20-7743-6676,
alisdair.haythornthwaite@pelhampr.com
For further information: Mr. Patrick Spollen, Investor Relations, Tel.: +41(0)22-702-95-47, patrick.spollen@addaxpetroleum.com; Mr. Craig Kelly, Investor Relations, Tel.: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: +41(0)22-702-94-44, marie-gabrielle.cajoly@addaxpetroleum.com; Mr. Nick Cowling, Press Relations, Tel.: +1-416-934-8011, nick.cowling@cossette.com; Mr. James Henderson, Press Relations, Tel.: +44(0)20-7743-6673, james.henderson@pelhampr.com; Mr.
Alisdair Haythornthwaite, Press Relations, Tel.: +44(0)20-7743-6676, alisdair.haythornthwaite@pelhampr.com
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