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09/23 ROO - We will look to make a formal announcement / press release once finalized.
"No worries - we are working hard to make it happen"
Regards,
XXXX
Addax Petroleum Corporation
Investor Relations
Dear XXXXX
From the Toronto Addax Capital Markets Day
Addax had indicated the Rig of Opportunity for the JDZ was close at hand and was hopefully expected to announce some news on that front shortly - pending an Addax Security visit with the pending crew.
Has there been any update since last weeks event that you can share ?
Kind regards,
RUBY1100
Industry Observer
Interesting to be told by Addax IR "NO WORRIES"
Sounds Promising ....
US $Dollar Weak = High Oil
see the new Barrons Article I posted on the ERHC Group on Facebook
says Oil headed back to $150 then $300
Addax wants this ROO as much if not more that ERHC
their Stock now is only $10 over their IPO price.
With a low PPS they cannot issue new shares or raise new capitol without major dilution.
Nigeria Sao Tome and the JDA also want a ROO as all their efforts in the JDZ + EEZ Are stalled until there is more interest in the region = more drilling = a ROO in Kina
Addax up $0.50 TSE Down 350 pts
ERHE up 27% Down down 450 pts
not too shabby
New Numbers
Multiple reservoir targets and Direct Hydrocarbon Indicators•
Main prospects evaluated
ERHC has 19.5% / 22% / 10%
Kina (Block 4): 458.0 MMbbl unrisked (172.5 MMbbl risked)-
Tome (Block 2): 346.1 MMbbl unrisked (183.7 MMbbl risked)
-Lemba(Block 3): 184.0 MMbbl unrisked (34.0 MMbbl risked)
ERHC Houston Headquarters Intact After Hurricane Ike
HOUSTON, September 16, 2008 - ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of central West Africa, today announced that its Houston headquarters was unharmed by Hurricane Ike. Nonetheless, the building in Houston's Galleria area remains without power or water and is closed.
Hurricane Ike swept through the Houston area on Saturday, September 13, bringing with it torrential rains and damaging winds. The windows of many Houston office buildings, particularly in downtown Houston, were blown out, causing significant damage and business disruption. ERHC's office were not damaged by the wind or rain.
ERHC's Houston staff is working virtually until power is restored to the Houston headquarters.
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in the highly prospective Gulf of Guinea and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors and employees, and to sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production. For more information, visit www.erhc.com.
ERHC NEWS - ERHC Energy Inc. Seeks Clarification From Joint Ministerial Council of the Nigeria-Sao Tome and Principe Joint Development 3:49 PM ET 9/8/08
ERHC Energy Inc. (OTCBB: ERHE), a publicly traded American company with oil and gas assets in the highly prospective Gulf of Guinea off the coast of central West Africa, is seeking the reaffirmation of government officials regarding the Company's rights in Joint Development Zone (JDZ) Blocks 5 and 6. In May 2005, the Nigeria-Sao Tome and Principe Joint Development Authority (JDA) confirmed ERHC Energy's 15 percent interest in the Blocks.
ERHC is committed to exploiting its rights and meeting its contractual obligations in the JDZ. The Company wants to eliminate uncertainty stemming from recent press reports in which members of the JMC were quoted. The reports raised questions about the status of ERHC rights in JDZ Blocks 5 and 6.
Letters sent by ERHC Energy Chief Operating Officer Peter Ntephe to the Joint Ministerial Council (JMC) of the Nigeria-Sao Tome and Principe JDZ and to the JDA, which manages the JDZ, assert the company's intent and commitment to exploit its rights in JDZ Blocks 5 and 6.
"We have the utmost respect and regard for the JMC and JDA, and we hope that media reports questioning our rights in JDZ Blocks 5 and 6 are erroneous, in which case we respectfully apologize for raising the issue," said Mr. Ntephe.
The letters also declare that if ERHC's rights in JDZ Blocks 5 and 6 are tampered with or compromised, the Company will take all necessary legal steps to protect its corporate interest.
ERHC Energy has interests in six of the nine Blocks in the offshore JDZ between Nigeria and the Democratic Republic of Sao Tome & Principe. The Company has additional interests in the territorial waters of Democratic Republic of Sao Tome & Principe known as the Exclusive Economic Zone (EEZ).
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in the highly prospective Gulf of Guinea and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors and employees, and to sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production. For more information, visit http://www.erhc.com
Contact: Dan Keeney, APR DPK Public Relations 832-467-2904 Email Contact
SOURCE: ERHC
http://www2.marketwire.com/mw/emailprcntct?id=5291DB178A24770F
Vanco Energy Company, Houston
Jeff Mitchell, 713-386-2710
www.vancoenergy.com
2-3 more weeks for Sea Trials for the AA Aban Abraham
35 Days to get to W.Africa
may stop in Cape Town on way to Africa for more tweaks
they hope to Drill Dec. 1
4-6 weeks program deep water
grandfathered day rates apply
all 4 Firm Wells are moving forward
I concur, expecially cause OilPhant came out of his closet
that being said, Spec is solid - and has good intel but deals have come and gone here and 500k is certainly not convincing this veteran
always best to wait till we get official word
Aban [Abraham] - August 2008 Presentation
http://www.aban.com/downloads/aolpresentation.pdf
Specs
Drill to 6600 Ft
Contract Expiry
Sep 2008- Aug 2011 [huh ????]
Day Rates
$325,000*/ $410,000
Customer
West Africa
Art, herein lies the problem,
do you think XOM management are worried what a few posters are blogging about on the XOM Board,
ERHC as reinstated on the call is 99% owned by the little guy.
If we want to play in the big boy's pool we need the big boys to play with us and until we make our first discovery they will probably stay away
so the catch 22 continues...
We cant run till we strike oil
We cant strike oil till we drill
2009 Nigeria Oil and Gas
http://www.cwcnog.com/index.php
http://www.cwcnog.com/index.php?page=sponsor
ERHC Energy Inc.
ERHC Energy Inc. is a Houston based independent oil and gas company focused on growth through high impact exploration in the highly prospective Gulf of Guinea and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors, and employees; sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production.
www.erhc.com
OPL 291 [Starcrest]
all allegations are UnTrue
Relationships are solid and Addax remains in good standing with Nigeria and Nigerian Government Leaders and the Addax Good Name remains intact
Joint Development Zone (“JDZ”) Latest 08/06...
http://www.addaxpetroleum.com/_media/Mid-year_2008_results_06.08.08.pdf
NOTES From Addax Call : "By FAR" the largest Oil Exploration is to Come from Deep Water !!!!!!!!!!
"Still exists the possibility for a Rig of Opp 2008 or early 2009"
Addax Petroleum was awarded an additional 7.2 per cent participating interest in Block 4 of the Nigeria/Sao Tome and Principe JDZ by an independent arbitration tribunal. The award increases Addax Petroleum’s interest in the license area from 38.3 per cent to 45.5 per cent.
Addax Petroleum is also the operator of 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 Kina prospect in JDZ Block 4 as early as the fourth quarter of 2008.
Gulf of Guinea Deep Water (Nigeria and JDZ)
- The Corporation continued its evaluation of drilling locations in
the JDZ license areas and its efforts to secure a rig of
opportunity to commence drilling operations in the fourth quarter
of 2008. In OPL291, the Corporation is also planning to acquire
3D seismic survey in the second half of 2008.
Addax Petroleum announces record second quarter 2008 results
Wednesday August 6, 7:53 am ET
<< - 83 per cent increase in Funds Flow From Operations to $524 million - 190 per cent increase in Net Income to $293 million - 8 per cent increase in Production to 132.9 Mbbl/d >>
CALGARY, Aug. 6 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC), today announced its results for the quarter ended June 30, 2008. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars.
This announcement coincides with the filing with the Canadian and U.K. securities regulatory authorities of Addax Petroleum's Unaudited Consolidated Financial Statements for the quarter ended June 30, 2008 and related Management's Discussion and Analysis. Copies of these documents may be obtained via www.sedar.com, www.londonstockexchange.com and the Corporation's website, www.addaxpetroleum.com.
A conference call and webcast will be held for analysts and investors today Wednesday, August 6, 2008 at 11.00 a.m. Eastern Time/4.00 p.m. London, U.K. Time. Full details can be found at the end of this announcement.
CEO's Comment
Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "I am pleased to report that robust production performance in a record oil price environment has propelled Addax Petroleum to yet another quarter of record financial results. Activity levels on all our business fronts were high through the second quarter and, on balance, our operational performance was good. Our production levels were slightly below expectations, and may remain so for the balance of the year, but continue to be strong given supply constraints ongoing in the sector. During the second quarter, we also continued to expand Addax Petroleum's property portfolio with four new license interest acquisitions. This new business activity is closely aligned with our dynamic exploration program, which had mixed results during the second quarter, but remain exciting for the balance of the year. I am particularly pleased and encouraged that our initiatives to commercialize our reserves in Kurdistan and gas resources in Nigeria are gaining momentum and can offer excellent value for our shareholders."
Selected Financial Highlights
<<
- Petroleum sales before royalties in the second quarter of 2008
amounted to $1,493 million, an increase of 98 per cent over petroleum
sales before royalties of $753 million in the second quarter of 2007.
The increase in petroleum sales before royalties was primarily driven
by a 81 per cent increase in the average crude oil sales price in the
second quarter of 2008 to $123.17 per barrel (/bbl) as compared to
$68.21/bbl realized in the second quarter of 2007 and an 11 per cent
increase in sales volumes between the same periods. Inventory levels
diminished slightly over the quarter as compared to Q1 2008 by
0.069 MMbbl, however the Corporation still retains a large oil
inventory balance that is expected to decline further before the end
of Q3 2008.
- Funds Flow From Operations for the second quarter of 2008 increased
83 per cent to $524 million ($3.37 per basic share) compared to
$287 million ($1.85 per basic share) in the second quarter of 2007.
- Net income in the second quarter of 2008 increased 190 per cent to
$293 million ($1.88 per basic share) compared to $101 million
($0.65 per basic share) in the corresponding period in 2007.
- Capital expenditures, excluding acquisition costs, increased by
34 per cent to $350 million in the second quarter of 2008 from
$261 million in the second quarter of 2007. Development capital
expenditures totaled $297 million in the second quarter, an increase
of 71 per cent over development capital expenditure of $174 million
in the second quarter of 2007. Exploration and appraisal capital
expenditures totaled $53 million in the quarter, a decrease of
39 per cent over exploration and appraisal capital expenditures of
$87 million in the second quarter of 2007.
- Acquisition costs associated with new business activities increased
to $19 million in the second quarter of 2008 from $nil in the second
quarter of 2007. New business activities included the acquisition of
two new exploration license areas for the Corporation's property
portfolio, the increase of the Corporation's working interest in two
other exploration license areas and the commencement of an integrated
gas utilization project in Nigeria.
- At the end of the second quarter 2008, bank debt totaled
$910 million, a decrease of $40 million over the corresponding
quarter in 2007. Bank debt is currently drawn under a 5-year,
$1.6 billion senior secured term facility, with 4 years remaining. In
addition, during the quarter, a new two year loan facility was signed
and underwritten for an amount of $450 million, which may increase to
$500 million after syndication. No amounts have been drawn on this
facility as at June 30, 2008.
The following table summarizes the selected financial highlights:
-------------------------------------------------------------------------
Selected second quarter financial highlights Quarter ended
June 30
$ million unless otherwise stated 2008 2007 Change
-------------------------------------------------------------------------
Petroleum sales before royalties 1,493 753 98%
Average realized sales price, $/bbl 123.17 68.21 81%
Sales volumes, MMbbl 12.2 11.0 11%
Funds Flow From Operations 524 287 83%
Net income 293 101 190%
Weighted average common shares outstanding
(basic, millions) 156 155 1%
Funds Flow From Operations per share
($/basic share) 3.37 1.85 82%
Earnings per share ($/basic share) 1.88 0.65 189%
Weighted average common shares outstanding
(diluted, millions) 162 157 3%
Funds Flow From Operations per share
($/diluted share) 3.24 1.82 78%
Earnings per share ($/diluted share) 1.83 0.65 182%
Total assets 4,502 3,282 37%
Long-term debt, excluding convertible bonds 910 950 -4%
Capital Expenditures - by Region
Nigeria (excluding deepwater) & Cameroon 235 177 33%
Gabon 106 43 147%
Kurdistan Region of Iraq 9 35 -74%
Deepwater Nigeria & JDZ 3 2 50%
Corporate, acquisitions, farm-in and
license signature fees 16 4 300%
Total 369 261 41%
Capital Expenditures - by Type
Development 297 174 71%
Exploration & appraisal 53 87 -39%
subtotal 350 261 34%
Acquisitions, farm-in and license
signature fees 19 0 n/a
Total 369 261 41%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Selected first half year financial highlights Half Year Ended
June 30
$ million unless otherwise stated 2008 2007 Change
-------------------------------------------------------------------------
Petroleum sales before royalties 2,647 1,380 92%
Average realized sales price, $/bbl 109.58 63.09 74%
Sales volumes, MMbbl 24.2 21.8 11%
Funds Flow From Operations 993 550 81%
Net income 533 180 196%
Weighted average common shares outstanding
(basic, millions) 156 155 1%
Funds Flow From Operations per share
($/basic share) 6.38 3.55 80%
Earnings per share ($/basic share) 3.42 1.16 195%
Weighted average common shares outstanding
(diluted, millions) 162 156 4%
Funds Flow From Operations per share
($/diluted share) 6.14 3.51 75%
Earnings per share ($/diluted share) 3.35 1.16 189%
Total assets 4,502 3,282 37%
Long-term debt, excluding convertible bonds 910 950 -4%
Capital Expenditures - by Region
Nigeria (excluding deepwater) & Cameroon 496 342 45%
Gabon 172 74 132%
Kurdistan Region of Iraq 16 50 -68%
Deepwater Nigeria & JDZ 6 5 20%
Corporate, acquisitions, farm-in and license
signature fees 19 6 217%
Total 709 477 49%
Capital Expenditures - by Type
Development 543 319 70%
Exploration & appraisal 147 158 -7%
subtotal 690 477 45%
Acquisitions, farm-in and license
signature fees 19 0 n/a
Total 709 477 49%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Selected New Business Highlights
- The second quarter of 2008 continued an active new business program
for Addax Petroleum with the addition of two new exploration license
areas to the Corporation's property portfolio and the increase of the
Corporation's working interest in two other exploration license
areas. In addition, Addax Petroleum received Federal Government of
Nigeria approval of an integrated gas utilization initiative which
could lead to the development and monetization of the Corporation's
considerable gas resources in Nigeria.
- New business highlights for the second quarter of 2008 include the
following:
Gulf of Guinea Shallow Water (Nigeria and Cameroon)
- The integrated gas utilization project in Nigeria was proposed by
Addax Petroleum together with partners Chrome Oil Services
Limited, a leading Nigerian oil and gas company, and Korea Gas
Corporation, South Korea's national gas company and the largest
LNG importer in the world (the "Consortium"). As approved by the
Federal Government of Nigeria, the project is intended to include
the exploration and development of gas fields in Nigeria,
including the Corporation's OML137, to secure the gas reserves
necessary to commercialize a new LNG production facility of up to
10 million tons per annum to be sited on Brass Island in Bayelsa
State, to provide domestic power generation capacity of up to
1,000 megawatts and to provide feedstock for the development of
petrochemical facilities. As part of the Federal Government
approval, the Consortium has been instructed to cooperate with the
Nigerian Ministry of State for Energy (Gas), the Department of
Petroleum Resources and the Nigerian National Petroleum
Corporation to establish fiscal and commercial terms for the
upstream and downstream activities that meet the required
investment levels for all participants in the project. The
Corporation believes that these negotiations will take place
rapidly and can be concluded in a timely fashion to achieve final
investment decision by the end of 2009;
- The Corporation was awarded a 40 per cent interest in Oil
Prospecting License ("OPL") 227, offshore Nigeria. Addax Petroleum
has paid a farm-in fee to our license area partners and a
signature bonus to the Federal Government of Nigeria, and is
obligated to fund 80 per cent of a work program comprising a
minimum of 500 km(2) of 3D seismic acquisition during the
exploration period. Addax Petroleum will also initially fund
80 per cent of all capital and operating costs on OPL227, and will
be entitled to a higher than pro-rata share of the net production
from OPL227 until all capital costs have been recovered after
which all parties will be entitled to their pro rata share of
production; and,
- Addax Petroleum signed a Production Sharing Contract ("PSC") with
the Republic of Cameroon, relating to the Iroko exploration
license area. Under the PSC, Addax Petroleum acquires a
100 per cent interest in the Iroko license area and is the
operator. The Société Nationale des Hydrocarbures ("SNH"), the
national oil company of Cameroon, holds a back-in right of 30% in
case of a development. In consideration for its interest in Iroko,
Addax Petroleum paid a signature bonus of $3 million and will
undertake within the first three years a minimum work program
valued at $17.5 million, which includes the acquisition of 3D
seismic data and the drilling of one well.
Gabon
- Addax Petroleum acquired an additional 18 per cent working
interest in the Iris Marin license area offshore Gabon by the
acquisition of a subsidiary of Sterling Energy plc. Addax
Petroleum will hold up to a 51.33 per cent working interest in the
Iris Marin license area and, subject to Government approval,
intends to become the operator.
Joint Development Zone ("JDZ")
- Addax Petroleum was awarded an additional 7.2 per cent
participating interest in Block 4 of the Nigeria/Sao Tome and
Principe JDZ by an independent arbitration tribunal. The award
increases Addax Petroleum's interest in the license area from
38.3 per cent to 45.5 per cent. Addax Petroleum is also the
operator of 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 Kina prospect in JDZ
Block 4 as early as the fourth quarter of 2008.
Selected Exploration and Appraisal Highlights
- During the second quarter of 2008, Addax Petroleum continued
progressing the exploration program within its property portfolio
through the drilling of four exploration and appraisal wells offshore
Cameroon, commencing a seismic acquisition campaign onshore Gabon and
additional appraisal work in the Kurdistan Region of Iraq.
- Exploration and appraisal highlights for the second quarter of 2008
include the following:
Gulf of Guinea Shallow Water (Nigeria and Cameroon)
- In Cameroon, the Corporation completed drilling its first
exploration wells in the Ngosso and Iroko license areas. As part
of the campaign, Addax Petroleum drilled two wells plus a
sidetrack at Ngosso and one well at Iroko. The sidetrack drilled
as part of the Ngosso drilling campaign established a gross
hydrocarbon column of 79 feet while the two Ngosso exploration
wells were plugged and abandoned. The Corporation believes the
sidetrack discovery may be developed in the future together with
existing oil discoveries in an overall field development. The
Iroko well encountered hydrocarbons in the main objective interval
and the Corporation is currently evaluating core, pressure and
wireline data obtained during the drilling of the well. The
Corporation plans to enter the next exploration period, including
a commitment to drill one exploration well, and to acquire
additional 3D seismic data on the prospective northern part of the
license area.
Gabon
- The Corporation has recently completed a 2D seismic survey on its
Remboue licence area during Q2 2008. The Corporation has also
commenced a large-scale seismic acquisition survey on its onshore
properties which is expected to include some 700-1000 km of
2D seismic on its Maghena and Epaemeno licence areas by mid-2009.
Gulf of Guinea Deep Water (Nigeria and JDZ)
- The Corporation continued its evaluation of drilling locations in
the JDZ license areas and its efforts to secure a rig of
opportunity to commence drilling operations in the fourth quarter
of 2008. In OPL291, the Corporation is also planning to acquire
3D seismic survey in the second half of 2008.
Kurdistan Region of Iraq
- Addax Petroleum has imported a second, larger drilling rig
(Kurdistan-1) and is expects to commence drilling the TT-10 well
in August 2008, followed by the drilling of the Kewa Chirmila
exploration well; and
- A successful acid stimulation campaign was performed on two wells
during the second quarter. The stimulation campaign was focused on
reservoir intervals which had previously demonstrated moderate
flow potential. In all instances, flow potential was significantly
improved. In the Shiranish formation in the TT-04 well, the flow
rate was improved from 3,940 bbl/d pre-acidization to 11,080 bbl/d
post-acidization. In the TT-06 well, two intervals were acidized
resulting in flow rate improvements pre and post acidization from
2,020 bbl/d to 18,580 bbl/d in the Kometan formation and from
1,500 bbl/d to 3,080 bbl/d in the Qamchuqa formation.
Selected Operational Highlights
- Average gross working interest oil production in the second quarter
of 2008 was 132,880 barrels per day (bbl/d) representing an increase
of approximately 8 per cent over the 2007 average production of
123,000 bbl/d. Average oil production in the second quarter of 2008
included 105,500 bbl/d from Nigeria and 27,390 bbl/d from Gabon
compared to a 2007 second quarter average production level of
104,100 bbl/d and 18,900 bbl/d, respectively.
- Development project highlights in the second quarter of 2008 include:
Nigeria
- drilled 8 new development wells which included 4 oil production
wells and 2 water injection wells in OML123, 1 oil production well
in OML126 and 1 oil production well in OML124;
- placed a total of 2 new oil production wells on production in the
quarter, representing 2 of the 6 production wells drilled in the
quarter;
- experienced contractor delays during the construction and
installation of pipelines and related facilities which have
resulted in approximately 6 Mbbl/d being shut-in at Oron West
South in OML123. Partial production from Oron West South is
expected to commence in Q3 2008, with full production expected to
follow in Q4 2008 after the completion of related infrastructure
construction. The Corporation has also been experiencing
logistical constraints on its Nigeria properties related to
increased security measures implemented during the quarter; and
- continued preparation of the Kita Marine and Antan field
development plans.
Gabon
- drilled 5 new development wells onshore of which 3 were in the
Addax Petroleum operated Tsiengui field in the Maghena license
area and 2 were in the Shell-operated Koula field in the Awoun
license area;
- placed a total of 3 new oil production wells on production in the
Tsiengui field in the quarter of which 1 was drilled in the
quarter and 2 were drilled in the previous quarter;
- experienced delays arising from the rectification of a well
completion failure and temporarily higher than expected decline
rates in some producing wells which inhibited production growth at
the current drilling rates. New production from the Awoun license
and increased capacity with the completion of the pipeline to
Shell's Rabi facility are expected to augment production; and
- continued ongoing surface facilities development at the onshore
Addax Petroleum operated Tsiengui and Obangue fields and the
Shell-operated Koula field, including the extension of the
Corporation's onshore oil export pipeline system, and at the
offshore non-operated Ebouri field.
Kurdistan Region of Iraq
- completed the construction of the first phase for an early
production system to provide approximately 10,000 bbl/d of
capacity. Continuing construction on the early production system
is expected to provide further capacity;
- continued trial production from the Taq Taq field at reduced rates
with intermittent local sales. The Corporation is targeting to
commence commercial oil production attributable to its working
interest in the second half of 2008; and
- conducted studies during the quarter to support front-end
engineering and design for an export pipeline.
- Operating netbacks in the second quarter of 2008 increased
78 per cent to $91.14/bbl compared to $51.17/bbl in the second
quarter of 2007. Unit operating expenses in the second quarter of
2008 increased to $9.55/bbl, an increase of 66 per cent over the 2007
level of $5.75/bbl as the Corporation continues to face cost
inflation pressures for the provision of services.
The following table summarizes selected operational information:
-------------------------------------------------------------------------
Selected second quarter operational highlights Quarter ended
June 30
2008 2007 Change
-------------------------------------------------------------------------
Quarter average gross working interest
oil production (Mbbl/d)
Nigeria (offshore) 98.5 96.6 2%
Nigeria (onshore) 7.0 7.5 -7%
Nigeria sub-total 105.5 104.1 1%
Gabon (offshore) 7.0 6.4 9%
Gabon (onshore) 20.4 12.5 63%
Gabon sub-total 27.4 18.9 45%
Total 132.9 123.0 8%
Prices, expenses and netbacks ($/bbl)
Average realized sales price 123.17 68.21 81%
Operating expenses 9.55 5.75 66%
Operating netback 91.14 51.17 78%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Selected first half year operational highlights Half Year Ended
June 30
2008 2007 Change
-------------------------------------------------------------------------
Quarter average gross working interest
oil production (Mbbl/d)
Nigeria (offshore) 100.4 94.4 6%
Nigeria (onshore) 7.2 6.6 9%
Nigeria sub-total 107.6 101.0 7%
Gabon (offshore) 7.0 6.4 9%
Gabon (onshore) 21.4 12.2 75%
Gabon sub-total 28.4 18.6 53%
Total 136.0 119.6 14%
Prices, expenses and netbacks ($/bbl)
Average realized sales price 109.58 63.09 74%
Operating expenses 8.81 6.72 31%
Operating netback 81.78 46.75 75%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
Dividend
During the second quarter of 2008, the Corporation paid a dividend of CDN$0.10 per share. The Board of Directors of the Corporation declared a dividend of CDN$0.10 per share on August 5, 2008 which is payable on September 11, 2008 to shareholders of record on August 28, 2008. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends.
Recent Developments
Since the end of the second quarter of 2008, the Corporation made the following announcements:
- on July 4, 2008, the Corporation announced the results of drilling 3
exploration wells plus a sidetrack in the Ngosso and Iroko license
areas;
- on July 7, 2008, the Corporation announced that the historic
milestone of 200 million barrels of oil production from the Addax
Petroleum operated OML123 offshore Nigeria had been achieved; and
- on July 16, 2008, the Corporation announced that it has been awarded
an additional 7.2 per cent participating interest in Block 4 of the
Nigeria/Sao Tome and Principe JDZ by an independent arbitration
tribunal, increasing Addax Petroleum's interest in the license area
to 45.5 per cent.
Outlook
Due to year-to-date results, delays in the installation of pipelines and related facilities and other operational issues, the Corporation is revising its production outlook for 2008. Addax Petroleum expects annual average working interest gross oil production for 2008 to be approximately 136,000 to 140,000 bbl/d. The Corporation's capital budget for 2008 remains unchanged at $1,615 million.
Analyst Conference Call
Financial analysts are invited to participate in a conference call and webcast today Tuesday, August 6, at 11:00 a.m. Eastern Time / 4:00 p.m. London, U.K. time with Mr. Jean Claude Gandur, President and Chief Executive Officer, Mr. Michael Ebsary, Chief Financial Officer and Mr. James Pearce, Chief Operating Officer. The media and shareholders may participate on a listen only basis. To participate in the conference call, please dial one of the following:
Toronto: 416 644 3419
Toll-free (Canada and the US): 1 800 732 6179
Toll-free (UK): 00 800 2288 3501
Toll-free (Switzerland): 00 800 2288 3501
A replay of the call will be available at (416) 640 1917 or (877) 289 8525, passcode 21277903 followed by the number sign until Friday, August 22, 2008.
Investors are invited to listen to the live webcast of the presentation via the following link:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2363680
The presentation slides for the above will be available prior to the conference call and webcast on Addax Petroleum's website at www.addaxpetroleum.com.
Legal Notice - Forward-Looking Statements
Certain statements in this report constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "may", "will", "should", "could", "would", "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook" or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, environmental matters, government approvals and syndication of new financing. 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: imprecision of reserves and resources estimates, ultimate recovery of reserves, 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 ability to market and sell natural gas under its production sharing contracts; the effects of weather and climate conditions; the results of exploration and development drilling and related activities; fluctuations 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, production 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 report is made as of the date of this report 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 report is expressly qualified by this cautionary statement.
Non-GAAP Measures
Addax Petroleum defines "Funds Flow From Operations" or "FFFO" as net cash from operating activities before changes in non-cash working capital. Management believes that in addition to net income, FFFO is a useful measure as it demonstrates Addax Petroleum's ability to generate the cash necessary to repay debt or fund future growth through capital investment. Addax Petroleum also assesses its performance utilizing Operating Netbacks which it defines as the per barrel pre-tax profit margin associated with the production and sale of crude oil and is calculated as the average realized sales price less royalties and operating expenses, on a per barrel basis. FFFO and Operating Netback are not recognized measures under Canadian GAAP. Readers are cautioned that these measures should not be construed as an alternative to net income or cash flow from operating activities determined in accordance with Canadian GAAP or as an indication of Addax Petroleum's performance. Addax Petroleum's method of calculating this measure may differ from other companies and accordingly, it may not be comparable to measures used by other companies.
For further information
Mr. Michael Ebsary, Chief Financial Officer, Tel.: +41 (0) 22 702 94 03, michael.ebsary@addaxpetroleum.com
Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: +41 (0) 22 702 94 44, marie-gabrielle.cajoly@addaxpetroleum.com
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
Mr. Nick Cowling, Press Relations, Tel.: (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
ERHC has Full Carry on the new 1.8% per the original Addax agreement
no New Funds coming with the resolution
Spec, Exxon cannot come back and claim 25% x 2 as they passed
so why can we? It appears we are out
unless we had a seperate agreement
Your article also reads like PGS is also out !!
Addax Petroleum announces Cameroon exploration results
Friday July 4, 8:42 am ET
Shallow water offshore exploration campaign at Ngosso and Iroko license areas
CALGARY, July 4 /CNW/ - Addax Petroleum Corporation (TSX: AXC and LSE: AXC) ("Addax Petroleum" or the "Corporation") announces the initial results of its Cameroon exploration campaign where the Corporation has recently completed drilling its first exploration wells in the Ngosso and Iroko license areas. As part of the campaign, Addax Petroleum drilled two wells plus a sidetrack at Ngosso and one well at Iroko.
The sidetrack drilled as part of the Ngosso drilling campaign established a gross hydrocarbon column of 79 feet while the two Ngosso exploration wells were plugged and abandoned as dry holes. The Corporation believes the sidetrack discovery may be developed in the future together with existing oil discoveries in an overall field development. The Iroko well encountered hydrocarbons in the main objective interval and the Corporation is currently evaluating core, pressure and wireline data obtained during the drilling of the well.
Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "While the initial results of the Cameroon exploration campaign were less encouraging than anticipated,
we will continue exploration activities on the license areas where there still exist several quality prospects.
Addax Petroleum's exciting 2008 exploration campaign continues this quarter with the drilling of the Charlie prospect in the Iris Marin license area offshore Gabon as well as the Taq Taq Deep exploration well in the Kurdistan Region of Iraq. In total, Addax Petroleum will be drilling up to 25 exploration and appraisal wells in 2008 in every major area of its property portfolio."
At Ngosso, the Odiong and Tali prospects on the south-west part of the license area were drilled to depths of 1,680 metres and 2,900 metres, respectively. The sidetrack at Tali encountered a gross hydrocarbon column of 79 feet comprising 62 feet of oil overlain by 17 feet of gas, confirming the Tali accumulation. The Corporation has completed its work commitment for the current period with the drilling of the two Ngosso wells. The Corporation plans to enter the next exploration period, including a commitment to drill one exploration well, and to acquire additional 3D seismic data on the prospective northern part of the license area in the late 2008 and early 2009.
The Iroko prospect on the east part of the Iroko license area was drilled to a total depth of 1,120 metres. The results of the core, pressure and wireline data are currently under evaluation by the Corporation and are necessary before determining the future drilling plans for the license area.
The drilling rig contracted by Addax Petroleum for the Cameroon exploration campaign is currently moving to the Iris Marin license area, offshore Gabon, where it will drill Addax Petroleum's first exploration well at Iris Marin.
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. 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 139,100 bbl/d for the first quarter of 2008. Further information about Addax Petroleum is available at www.sedar.com, www.londonstockexchange.com or the Corporation's website, http://www.addaxpetroleum.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.: (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
Red "Happy Birthday"
Ruby
DougQuaid you can wire them at 9AM and be trading by 9:30-10am
I've done it
So much for the road shows !
Lets hope this is a shake pre IPO / RIG news
or just a general sell off due to the DOW down 150 pts
if Kosmos has a new Rig in April 2009 the "Atwood Hunter" for 27 months perhaps they dont need the AA first - sounds like they made a sweet deal
Sidewinder thanks for attending
please ask management where is our RIG of Opp and the status of the AA, and any update on our BL 4 arbitration w/ Addax
we look forward to your findings
speculation on a message board is hardly defamation
Krombacher for the record and please put this to rest
"There has been no accusation, no allegations of wrongdoing, nobody charged. The government is not pursuing the investigation at this time.
The [iHub] board will do what it determines is in the best interests of the company and its shareholders, but it [ERHC Management] is NOT currently considering the [cash settlement / paying of any fine] scenario you’ve described."
Dan Keeney, APR
DPK Public Relations
June 24,2008
DG - my understanding and confirmation is our case is not presently being worked on [hence not active]
and
your scenario is not realistic at this point
ERHC has done nothing wrong except seek an undervalued opportunity and jump all over it, almost go broke doing it and now stands to gain tremendously from it.
Why would SEO pay the Gov't off for something he did not do and basically "Admit Guilt" for an innocent act
is it a crime to know powerful / influencial people
this is how business is done "it's WHO YA KNOW" and ERHC knows people!
is it our fault STP signed away their presious signature bonues's to us 10 years before they knew the real value when no one / was even talking to them about oil.
is it a crime to make a Political contribution - its done every single day in the USA.
is it our fault STP only has 40% of the JDZ?
is it our fault Oil has risin 7 fold since yr. 2000?
is it our fault Exxon left JDZ BL 2 & 4 for us so we could get our 30% + 25% in there?
is it our fault SEO signed a better deal with Addax and Sinopec vs. Devon and Pioneer?
is it our fault the JDA gave us operatorship in BL 4 only bidding $56 Million vs Anadarko's $90 Million [ha ha]
its tough luck for all of them and our time to shine
------------------
but having said that ....
it would be nice to see the investigations come to a close - they basically are IMHO
any PR from the Gov't saying they have ENDED their baseless investigation of ERHC would give us a nice bounce up
perhaps this is what management has in mind
Thx Dan
Nuff Said "If someone was to make an offer that had a substantial premium, we would consider selling"
Except the fact "Addax Petroleum commences arbitration proceedings against ERHC in respect an additional 9% assigned to the ERHC/Addax Petroleum under the Block 4 PSC"
Tamtam greatly appreciated !! - Peter says new AIM IPO will bring NEW Value "[Immediate + Realizable]" Assets to ERHE
not touching the GoG assets
Rig + IPO please ASAP
Goldman Sachs was on the Bid all Day !! and a good part of yesterday
anyone see Goldman Sachs on the BID yest !!!
nibble nibble
Welcome Mr Branco - get our EEZ Blocks goin'
if anyone has noticed they [STP] usually change Governments and Prime Ministers and Ministers every 6 months or so…
Perhaps they can launch the EEZ Blocks already – only been 8 years – Geez ….
RIG + IPO and EEZ please
<Mr. Ledbetter's keynote address, "Challenges for a Small Company in the Deep Water of the Gulf of Guinea," is scheduled for 9:50 a.m., Tuesday June 17th. The Premier Sub Saharan Africa Oil and Gas Conference is expected to attract senior energy policymakers from governments, investors and investment bankers, risk managers and local content advisers.>
from todays PR
9:50 am is Prime Time !!
Sub Saharan Africa Oil and Gas Conference info
http://www.energycorporateafrica.com/events.php
ERHC NEWS ! ERHC Energy to Present at Premier Sub Saharan Africa Oil and Gas Conference in Houston
Wednesday June 11, 11:35 am ET
In London, Company's Executives Warmly Received at Growth Company Investors Conference
HOUSTON, TX--(MARKET WIRE)--Jun 11, 2008 -- ERHC Energy Inc. (OTC BB:ERHE.OB - News) today announced that Vice President Technical, James Ledbetter, will be a featured speaker at the Premier Sub Saharan Africa Oil and Gas Conference at the Intercontinental Hotel in Houston. ERHC is a publicly traded American company with valuable oil and gas assets in the highly prospective Gulf of Guinea off the coast of central West Africa.
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The announcement comes as ERHC's management met with investors at the Growth Company Investors Conference in London. Chief Operations Officer Peter Ntephe described the Company's plans to list a subsidiary on the Alternative Investments Market (AIM) of the London Stock Exchange, its oil and gas interests in the Gulf of Guinea and progress being made toward exploratory drilling.
In Houston, Mr. Ledbetter's keynote address, "Challenges for a Small Company in the Deep Water of the Gulf of Guinea," is scheduled for 9:50 a.m., Tuesday June 17th. The Premier Sub Saharan Africa Oil and Gas Conference is expected to attract senior energy policymakers from governments, investors and investment bankers, risk managers and local content advisers.
Mr. Ledbetter is guiding ERHC Energy's technical activities in the Gulf of Guinea as the Company prepares for the start of exploratory drilling. ERHC has interests in six of the nine Joint Development Zone (JDZ) Blocks between Nigeria and the Democratic Republic of São Tome & Principe. Operators of two of the JDZ Blocks have indicated that drill could begin before the end of 2008. The Company also holds preferential rights in the São Tome & Principe Exclusive Economic Zone.
The theme of the three-day conference is "Investment opportunities, partnership challenges in the oil and gas industries in Sub Saharan Africa and outcomes of local content policy." The conference will present investment opportunities in the Sub-Saharan oil and gas exploration and production industry as well as best practices for creating innovative partnerships between foreign investors and local operators.
Countries of focus during the conference include Angola, Cameroon, Chad, Congo, Cote D'Ivoire, Equatorial Guinea, Gabon, Ghana, Guinea-Bissau, Mali, Mauritania, Nigeria, São Tome & Principe and Senegal.
About ERHC Energy
ERHC Energy Inc. is a publicly traded American company with valuable oil and gas assets in the in the highly prospective Gulf of Guinea. ERHC is committed to creating and delivering significant value for its shareholders, investors, and employees; sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production. For more information, visit www.erhc.com.
This press release contains statements concerning ERHC Energy Inc.'s future operating milestones, future drilling operations, the planned exploration and appraisal program, future prospects, future investment opportunities and financing plans, future shareholders' meetings, response to the Senate Subcommittee investigation, developments in the SEC investigation of the Company and related proceedings, as well as other matters that are not historical facts or information. Such statements are inherently subject to a variety of risks, assumptions and uncertainties that could cause actual results to differ materially from those anticipated, projected, expressed or implied. A discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports and other filings with the Securities and Exchange Commission. These factors include, among others, those relating to the Company's ability to exploit its commercial interests in the JDZ and the exclusive territorial waters of São Tomé and Príncipe, general economic and business conditions, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations and various other matters, many of which are beyond the Company's control. Given these concerns, investors and analysts should not place undue reliance on these statements. Each of the above statements speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any of the above statements is based.
Contact:
Contact:
Dan Keeney, APR
DPK Public Relations
832-467-2904
Email Contact
--------------------------------------------------------------------------------
Source: ERHC Energy
Addax Petroleum acquires shallow water exploration license in Nigeria
Wednesday June 11, 7:33 am ET
Acquires 40 per cent interest in OPL227 offshore Nigeria
CALGARY, June 11 /CNW/
- Addax Petroleum Corporation (TSX: AXC and LSE: AXC) ("Addax Petroleum" or the "Corporation") announces today that it has been awarded a 40 per cent interest in Oil Prospecting License ("OPL") 227, offshore Nigeria. Addax Petroleum's co-participants in the OPL227 license area are Express Petroleum & Gas Company Limited ("Express") and Petroleum Prospects International Limited ("PPI"), both of which are indigenous Nigerian oil companies.
The OPL227 license area is located in the shallow water offshore of the western Niger Delta Basin, one of the most prolific petroleum basins in the world.
Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "Addax Petroleum continues to demonstrate its commitment to Nigeria and add to its extensive exploration portfolio with this acquisition. Exploration in our core area of Nigeria is a cornerstone to Addax Petroleum's growth strategy and we are excited to be acquiring a substantial interest in a license that is in a highly prospective area but has seen very little modern exploration activity to date. We are also pleased that Addax Petroleum has been selected by Express and PPI to be their partner of choice for OPL227 and we look forward to working more closely with both organizations."
The OPL227 license area covers approximately 851 km(2) (210,300 acres) and is adjacent to and to the north-east of the Shell-operated OML79 license area. OML79 contains Shell's EA field development which is reported to have commenced production in 2002 and to contain approximately 350 MMbbl of remaining recoverable oil. There have been four wells drilled in the OPL227 license area, all between 1974 and 1988, all of which encountered hydrocarbons in non-commercial quantities or shows. In addition, there has been minimal 2D seismic and no 3D seismic data acquired on OPL227 to date.
Under the terms of the award, Addax Petroleum received a 40 per cent interest in OPL227 while Express and PPI received interests of 39 per cent and 21 per cent, respectively. Express is the operator while Addax Petroleum will conduct technical operations in its capacity as technical advisor. In return, Addax Petroleum has paid a farm-in fee to Express and PPI and a signature bonus to the Federal Government of Nigeria, and is obligated to fund 80 per cent of a work program comprising a minimum of 500 km(2) of 3D seismic acquisition during the exploration period, while Express will fund the remaining 20%. Addax Petroleum will also initially fund 80 per cent of all capital and operating costs on OPL227, with Express funding the remaining 20 per cent, and will be entitled to a higher than pro-rata share of the net production from OPL227 until all capital costs have been recovered after which all parties will be entitled to their pro rata share of production.
About Addax Petroleum