ERHC Energy Inc (ERHE): Addax Expands JDZ Presence Tuesday, Se...

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Sunday, 09/30/2007 11:48:39 AM

Sunday, September 30, 2007 11:48:39 AM

Addax Expands JDZ Presence
Tuesday, September 25, 2007 Printer Friendly Email this article

Addax Petroleum is about to corner the market in the JDZ as it is set to acquire a stake in Block 1 from US supermajor ExxonMobil. The company announced that it is entering into a deal that gives it the US company’s 40% stake in Block 1, the only block in the JDZ so far to see the drill bit. The company already holds stakes in Blocks 2, 3, and 4.

Block 1 contains the only well drilled to date in the JDZ, Obo-1, which is significant because it encountered hydrocarbons when drilled in 2006. There are no further exploration commitments on Block 1 during the current contract period.
Addax Petroleum and Esso Exploration and Production Nigeria-Sao Tome Ltd. (Esso) entered into a sale and purchase agreement under which Addax Petroleum has agreed to acquire Esso’s 40% working interest in Block 1 and, as consideration, to pay $77.6 million and 2% of Addax Petroleum's share of profit oil produced from Block 1.

Completion of the sale and purchase agreement is subject to the approval of the Joint Development Authority of the JDZ.

On its other JDZ assets, Addax said that a drillship, the Aban Abraham, has been contracted to drill up to ten exploration and appraisal wells. Drilling is expected to begin Q4 2008 in the JDZ.