Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
MD - 2nd hand news... get used to it ....
We are "legally obligated" to shut up, and let the operators report news, I am certain management has made this known along the way, and ERHC is not stupid enough to breech these agreements.
if you want first hand news go buy Addax, Anadarko or Sinopec, in fact they had an outside institution make the estimate how much oil they have - it would be great if we could report this, but I dont think we can. Plus Addax is Canadian and they have more flexible disclosure regulations.
our website sites the 14 Bbls in the JDZ - what else do you want? Repeat this tidbit in every PR ?
However the new assets and IPO coming in Europe are supposed to be separate, so perhaps they may be reported in a primary news cycle
you asked .....
"why can't we republicize what our operators are saying to our public? Why do we have to read it second hand?"
-- Chinese Proverb -- Interesting post "To attract good fortune, spend a new penny on an old friend, share an old pleasure with a new friend and lift up the heart of a true friend by writing his name on the wings of a dragon."
Great Article on Starcrest, thanks
Starcrest appears to have come out the clear winner dispite all the past controversary [clean now as a baby's bottom]
SEO's name seems to have vanished alltogether and now Starcrest appears to have applied for a license several years earlier although it was not even a registered business prior to the official bid round, and now they donate to local Nigerian Hospitals - gotta love the compassion,
Great for our former Chairman, and Addax
Addax planning 3D work this year and plans to Drill in 2010
However we all know the real story
it would have been a great addition to the ERHC portfolio,
I think the Feds clearly nixed it for us,,,,,
hope SEO will make it up to us in spades as he has done with our great partners, and PSCs to date
I have a feeling he will
Rig and IPO please
L&S
confirmed MM VERT is not shorting just standard order flow
and now VERT is on the bid
another 200,000k block @ $0.45 nice
2nd one today
thanks PUP, much Appreciated and here is a re-Post
of exactly what Addax CEO said earlier this morning in Paris ...
***JDZ UPDATE ***
New Addax Presentation 05/13/2008
Tristone Conference Paris, France
Jean Claude Addax CEO presenting
High Impact Opportunities JDZ
**** STARTING IN 2008 ****
High Impact Opportunities with significant upside
*** ARE POTENTIAL COMPANY MAKERS for ADDAX ***
deep water GoG 5 Blocks
GoG this may *DOUBLE* Addax's reserve base
“late 2008” first drilling in which we intend to maximize shareholder value
This year and next will be signficant
Deep Water Exciting Portfolio with promising prospects
1.2 Bbls unrisked 500 risked
Summary Exploration Outlook
JDZ 2008 - 1 well,
JDZ 2009 - 5 wells
Budget of Exploration is increasingly important to Addax
Deep water budget 50% increase
KEY EVENTS in 2008 to look for
**** JDZ Deepwater Drillship of Opportunity ****
Other Notes :
Nigeria is BedRock of Addax – celebrating 10 years of operations, experience in Nigeria has been excellent
Strong Government Relationships which give them an advantage
Exciting opportunites in GoG will be an “Ever growing part of our [Addax’s] Future
----------------------------------------------
https://tristonecapital-ls.webex.com/tristonecapital-ls/onstage/g.php?p=2 &t=m
To enroll for the event, click on the Large Cap E+P box and then click "Enroll". Follow-up emails will indicate how to join the event.
OILPHANT 1 month silence? Welcome back !
Is the cat coming out of the bag?
2 x Pi and now "The die has been cast"
Whats up ??? more please
Ruby
yes VERT backed off to $0.44 now
*sometimes the MMs act as sellers but are really buyers
WE WILL NEVER KNOW
200,000k traded at $0.425 !!
OpusX - yes this was the Live Addax presentation by their CEO this morning in Paris.
so yes EVERY presentation they have they are BOLDLY sticking to 2008 for drilling and stressing how important the region is for them - a "Company Maker" i.e. they may double their reserves from the deep water prospects
Rig + IPO please
***JDZ UPDATE ***
New Addax Presentation 05/13 Tristone Conference Paris, France
Jean Claude Addax CEO presenting
High Impact Opportunities JDZ
**** STARTING IN 2008 ****
High Impact Opportunities with significant upside
*** ARE POTENTIAL COMPANY MAKERS for ADDAX ***
deep water GoG 5 Blocks
GoG this may *DOUBLE* Addax's reserve base
“late 2008” first drilling in which we intend to maximize shareholder value
This year and next will be signficant
Deep Water Exciting Portfolio with promising prospects
1.2 Bbls unrisked 500 risked
Summary Exploration Outlook
JDZ 2008 - 1 well,
JDZ 2009 - 5 wells
Budget of Exploration is increasingly important to Addax
Deep water budget 50% increase
KEY EVENTS in 2008 to look for
**** JDZ Deepwater Drillship of Opportunity ****
Other Notes :
Nigeria is BedRock of Addax – celebrating 10 years of operations, experience in Nigeria has been excellent
Strong Government Relationships which give then an advantage
Exciting opportunites in GoG will be an “Ever growing part of our [Addax’s] Future
----------------------------------------------
https://tristonecapital-ls.webex.com/tristonecapital-ls/onstage/g.php?p=2 &t=m
To enroll for the event, click on the Large Cap E+P box and then click "Enroll". Follow-up emails will indicate how to join the event.
related news - Hyperdynamics Announces $4 Million Registered Direct Common Stock Offering
Monday May 12, 8:35 am ET
HOUSTON- Hyperdynamics Corporation (AMEX:HDY -News) today announced that it has agreed to sell 2,424,243 shares of the Company’s Common stock in a registered offering for a per share purchase price of $1.65 and warrants to purchase up to for 2,424,243 shares of the Company’s common stock with an exercise price of $3.24 and a term of exercise of 7 years.
The financing was placed with two affiliated institutional investors with a focus on developing E&P companies, resulting in gross proceeds of approximately $4 million. C.K. Cooper & Company acted as placement agent on the transaction.
ADVERTISEMENT
The offering was conducted pursuant to the Company’s effective shelf registration statement previously filed with the Securities and Exchange Commission.
Hyperdynamics intends to use the net proceeds for general corporate purposes including expansion and acceleration of the Company’s exploration program offshore Guinea.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective shelf registration statement. Copies of the final prospectus, including the prospectus supplement, can be obtained at the SEC’s website, www.sec.gov, or from C.K. Cooper & Company, 18300 Von Karman Avenue, Suite 700, Irvine, CA 92612.
About Hyperdynamics
Hyperdynamics Corporation provides energy for the future by exploring and producing sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit 31,000 square miles offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas. To find out more about Hyperdynamics Corporation, visit our Website at http://www.hyperdynamics.com. For additional information on play types within our concession please visit the following web page:
http://www.hyperdynamics.com/africa_exploration.htm.
BB i was forwarded the email note with your name sent from Dan to you
[i just sent it to you]
perhaps ... check your spam / junk email folder
unless he had the wrong email for you
- he "DID" send it to you
so you should give Dan the benefit of the doubt,
and ART was correct Sir..
Ruby
I will assume Dans Email never got to you
but the BoD was ADVISED NOT TO PURCHASE SHARES
Dan supplied the proof - makes perfect sense
End of discussion
ERHC’s directors and officers need to be cognizant that they may not purchase or sell ERHC securities at any time at which they are in possession of material non-pubic information.
Bob when the waiter from your favorite steakhouse brings you a hot delicious filet mignon cooked to perfection with all the trimmings,
do you then turn and ask what farm the cow came from ??
or just enjoy
PUP - U R The Best - Thanks
**Happy Mothers Day** to all the Moms
with this news upon us,
this time next year Mom, your present is sure to be bigger
ERHC net loss up in first quarter
Upstream Online
http://www.upstreamonline.com/incoming/article154510.ece
Houston-based independent oil and gas company ERHC Energy reported a net loss of $847,739 for the first quarter of this year, compared with a net loss of $444,504 for the same quarter last year.
ERHC’s interest income totalled $322,962.
The company’s cash assets totalled about $33 million, compared to about $36 million one year ago.
Company chief Peter Ntephe said: “The Company continues to maintain adequate cash reserves due to careful, responsible cost controls. ERHC’s strong financial standing positions us to pursue possible opportunities for corporate growth, such as corporate mergers and acquisitions and stock exchange listings.”
ERHC Energy has interests in six of the nine blocks in the offshore Joint Development Zone 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.
According to the Block operators, exploratory drilling in two JDZ blocks in which ERHC has interests could begin as early as the fourth quarter of 2008.
--------------------------------------------------------------------------------
09 May 2008 21:47 GMT | last updated: 09 May 2008 21:48 GMT
ERHC #1 http://investorshub.advfn.com/boards/default.asp
Most Active Message Board
agree Art as Bovell said its all about PPS enhancement going forward management and the BoD wants to see some $$$$ already
DB...<<<The only way you can enhance shareholder value sustainably is to go out there and give the investing public a sense of where the company is and where it's going and the potential benefits of investing in the company.
So we will spend a fair amount of time on that as well, because enhanced shareholder value is something the board, management and all the shareholders would like to see.>>>
FYI in the last 60 days we have had 10 PRs
IPO and RIG please
Complete ERHC Filing ... http://tinyurl.com/5h846x
As of March 31, 2008, ERHC reported cash assets totaling approximately $33 million
During the three months ended March 31, 2008, ERHC’s interest income totaled $322,962
ERHC’s strong financial standing positions us to pursue possible opportunities for corporate growth, such as corporate mergers and acquisitions and stock exchange listings
According to the Block operators, exploratory drilling in two JDZ Blocks in which ERHC has interests could begin as early as the fourth quarter of 2008
In 1999, Geco-Prakla (now WesternGeco) shot a 2D seismic survey of approximately 5,900km covering the major part of the JDZ.
Interpretation carried out by WesternGeco has enabled the identification of 56 prospective structures within Blocks 1 to 9 in the JDZ, of which 17 were defined as prospects and 39 as leads. WesternGeco used reservoir parameters similar to those known from nearby fields in Nigeria and Equatorial Guinea.
Combined recoverable reserves potential of the 17 prospects was estimated by WesternGeco to be 14.4 billion barrels of oil.
The scope of the WesternGeco report was to interpret and map seismic data, highlight prospectivity, and calculate volumetrics.
RED, please remind the folks what happens to penny oil companies that make "Elephant" Discoveries ???
JDZ on trend with world-class oil fields
- Agbami (Chevron) : 800 to 1,000 MMbbl (”Big 5”)
- Bonga (Shell) : 700 MMbbl
- Akpo and Usan (Total) : 500 MMbbl each
*Kina - pending xxxMMbbl
in May of 2006 pre investigations, the RIG was 2 1/2 years out
Once Addax lets the cat out of the bag and confirms
as they stated 3,4 times in a recent investor presentation 05/08
and also stated to "WATCH for an ANNOUNCEMENT" for Q4 2008
http://www.addaxpetroleum.com/investors/management_presentations
our STOCK will ROCK -
RIG & IPO Please
RED - Rig & IPO Please !!!!
to attract new buyers in a new market
to spread the risk of our assets around the world
to be perceived more as a Global company
to ensure American and European INSTITUTIONS we are the REAL DEAL
the OTC BB days are winding down
a new crowd is going to emerge
reminder currently we are just a small section in the upper deck and everyone is line up out side the gates waiting to get their seats
they will be jumping over each other to get a good one
count me in !!
Rig and IPO please
NEW ADDAX Presentation MAY 8 2008 !!!!
repost ...
http://www.addaxpetroleum.com/_media/2008_05_Investor_Presentation_Final.pdf
"Targeting to commence high impact exploration drilling in late 2008"
Other Items to Watch for in 2008 - Q4 Drilling JDZ BL 4, Kina
"Deepwater drillship of opportunity"
Drilling timeline:
- targeting to start drilling in Q4, 2008 – rig of opportunity
- deep water drilling rig contracted for up to 10 wells; 2009
JDZ Blocks 1, 2, 3 & 4
Full 3D seismic coverage
• Multiple reservoir targets and Direct Hydrocarbon
Indicators in many prospects
• 19 prospects evaluated (YE 2007)
- EUR (WI): 727 MMbbl unrisked, 313 MMbbl risked [Addax Share]
• $56 mm budgeted for 2008
- including first well in JDZ 4
http://www.addaxpetroleum.com/investors/management_presentations
Phonemanfl Agree - why else would they say this ....
Other Items to Watch for in 2008 - Q4 Drilling JDZ BL 4, Kina
"Deepwater drillship of opportunity"
in order to "Watch for it"
- they MUST feel confident its coming and soon
we may learn more on the Tuesday morning presentation coming up
NEW ADDAX Presentation MAY 8 2008 !!!!
http://www.addaxpetroleum.com/_media/2008_05_Investor_Presentation_Final.pdf
"Targeting to commence high impact exploration drilling in late 2008"
Other Items to Watch for in 2008 - Q4 Drilling JDZ BL 4, Kina
"Deepwater drillship of opportunity"
Drilling timeline:
- targeting to start drilling in Q4, 2008 – rig of opportunity
- deep water drilling rig contracted for up to 10 wells; 2009
JDZ Blocks 1, 2, 3 & 4
Full 3D seismic coverage
• Multiple reservoir targets and Direct Hydrocarbon
Indicators in many prospects
• 19 prospects evaluated (YE 2007)
- EUR (WI): 727 MMbbl unrisked, 313 MMbbl risked
• $56 mm budgeted for 2008
- including first well in JDZ 4
http://www.addaxpetroleum.com/investors/management_presentations
Addax Presentation May 13th, 2008 at approximately 8:55 a.m. Eastern Time).
Investors are invited to use the link below to watch the presentation and listen to the live audio cast.
To enroll for the event, click on the Large Cap E+P box and then click "Enroll". Follow-up emails will indicate how to join the event.
https://tristonecapital-ls.webex.com/tristonecapital-ls/onstage/g.php?p=2&t=m
The presentation slides will be available prior to the presentation on
Addax Petroleum's website at
http://www.addaxpetroleum.com.
IMO if all the ERHC JDZ + EEZ assets are perfected like JDZ BL 2,3,4 the parts sold off separately will certainly be worth much more than the whole sold off at a discount
that said
I have no clue what's up in Europe it will certainly keep the speculators guessing
it appears David has ambitious goals for our minnow to thrust into whale status in a short time
Rig and IPO please
DB: The only way you can enhance shareholder value sustainably is to go out there and give the investing public a sense of
where the company is
and where it’s going
and the potential benefits of investing in the company.
So we will spend a fair amount of time on that as well,
because enhanced shareholder value is something the board, management and all the shareholders would like to see.
Rig and IPO please
Amex and Nasdaq require a $3-5 PPS
L&S
ERHC to go on AMEX or NASDAQ ?? WOW !!
ERHC Energy Releases Q&A with Vice President Corporate Development
http://www.erhc.com/en/releases/releases_view.asp
HOUSTON, May 7, 2008 – ERHC Energy Inc. (OTCBB: ERHE), an American company with valuable oil and gas assets in the highly prospective Gulf of Guinea, released the following interview with David Bovell, vice president corporate development with ERHC, after the market close on Wednesday, May 7, 2008. The discussion covered issues related to Mr. Bovell’s responsibilities, including expanding the Company’s assets through acquisitions and exploring various stock exchange listing alternatives.
Q: What do you see as the primary roles and responsibilities coming into that new position?
I see them as three-fold: First is to list a subsidiary of ERHC Energy Inc. on the Alternative Investment Market (AIM) of the London Stock Exchange. The second function for the short- or medium-term is to help to expand the company’s assets. Initiating and managing the search process, reviewing and quantifying the applicable opportunities, then assisting management to come to a conclusion. The third function is to enhance shareholder value and to assist the company in realizing shareholder value through corporate communications and doing deals that achieve positive financial results.
Q: Explain the rationale for listing a subsidiary on the AIM exchange.
The idea would be to create a brand new company, an ERHC subsidiary, that would be incorporated in an advantageous tax environment. The company would initially be 100 percent owned by ERHC Energy Inc directly or through its wholly owned Cayman holding company. We would then list that new company on the AIM. We will be creating a separate asset pool for the company. In due course, we would seek to raise money on the London Stock Exchange so that we could invest in assets that were appropriate in that part of the world.
Q: What impact would that have on ERHC Inc.’s assets in the Gulf of Guinea?
None. ERHC Energy Inc. would have its core, directly-owned assets in West Africa and elsewhere. It would also have a large percentage of the U.K.-listed company, which would have substantial assets of its own. There would be a common management team that would be managing both, which can create synergies. Accessing the additional pool of capital through the AIM, we can achieve a higher number than if you had just done everything through the U.S. company.
Q: What is the benefit of today’s shareholders of the scenario you’re describing regarding the U.K.-listed Company?
It gives us access to another capital pool and should enhance value for today’s shareholders. It would enable us to do transactions that we otherwise would not be able to do because we would be capital constrained over here.
Q: Do you see ERHC Energy Inc. continuing to be listed on the Over-the-Counter Bulletin Board?
In the next 12 to 18 months I anticipate ERHC Energy Inc. should be in a position to move from the OTC. Either the AMEX or NASDAQ would be a better place to be than the OTC.
Q: You’ve been associated with the company since early 2007. What have you done for ERHC as a consultant in that time?
Basically, I have been looking at merger and acquisition opportunities for the company and advising the Company on its listing options, as far as the European markets are concerned.
Q: What attracted you to ERHC as an outsider?
As a consultant, the reason I was attracted to ERHC was that the company had potential. I’ve since learned a lot about ERHC’s opportunities that has reinforced my initial views. The primary factor was seeing that there is a real opportunity for the company to grow from an investor’s point of view.
Q: When you say that ERHC had potential, can you expand on that?
ERHC looked like a company that was undervalued but had great potential. Those are the types of opportunities we looked for.
Q: Some people might say that’s still a good description for where ERHC is today.
That situation is going to change and together with Peter and the existing management team, we are going to change it. The board has made it clear that this is what they want and the shareholders seem to be enthused by that.
Q: Would you say that ERHC’s Gulf of Guinea assets serve as the foundation to build upon?
Exactly. The core value of the company lies in the Gulf of Guinea, which is going to be the major driver and at the moment it is the foundation of the company’s valuation. In order to realize the value of the Gulf of Guinea opportunities, there are things we need to do in the interim. That is to diversify and use the company’s expertise to tap into other opportunities that will deliver in an earlier timeframe.
Q: What business do you think ERHC is in?
We are an energy investment company. ERHC has a technical expertise, but that expertise won’t extend to being an operator. It will extend to being able to understand an investment opportunity from a technical standpoint and then to realize value by putting money into the right projects.
Q: What is the area of focus of your attention?
The initial area of focus will be Africa and Europe right up to the borders of Russia. Does that mean that it will be the sole source of my focus? No. We will pay attention to North America as well.
Q: Do you continue to see West Africa and the Gulf of Guinea being an area of emphasis?
Yes. There are some serious opportunities there. With the contacts we have, we have an ability to get into them expeditiously before anybody else drives the price up.
Q: What haven’t I touched on that you think we should cover?
The only way you can enhance shareholder value sustainably is to go out there and give the investing public a sense of where the company is and where it’s going and the potential benefits of investing in the company. So we will spend a fair amount of time on that as well, because enhanced shareholder value is something the board, management and all the shareholders would like to see.
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
MM VERT has been on the ASK for 5 days now
not that aggressive on the bid but has been a net seller in a LOW VOL environment
creeping down his Asking price from $0.44 - 0.43 $0.42 etc
from the Addax Call.. sure sounds as if Jean Claude is excited about the JDZ ...
"With each passing month move closer to the start of exploration operations in the deep water GoG, we also continue to see a Rig of Opp. in addition to the contracted Aban Abraham to START DRILLING BEFORE YEAR END" !!!!!!!!!!!!!
and other speaker ...
"planning to get an "EARLY" Rig of Opportunity
Rig Please !!!
if we just leave IRAQ Oil will go wild
correct, oil-cowboy cheap oil is gone forever
never again under $100 IMO
RIG please >>>>
Addax Petroleum announces Record First Quarter 2008 results
Tuesday May 6, 7:32 am ET
**** 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 "second half of 2008" ************
<< - 78 per cent increase in Funds Flow From Operations to $469 million - 204 per cent increase in Net Income to $240 million - 20 per cent increase in Production to 139.1 Mbbl/d >>
CALGARY, May 6 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC), today announced its results for the quarter ended March 31, 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 Audited Consolidated Financial Statements for the quarter ended March 31, 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 will be held for analysts and investors today Tuesday, May 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 Addax Petroleum's performance in the first three months of 2008 continues to build upon our track record for delivering robust results, strong operational performance and excellent netbacks. Exploration and appraisal activity this year has been very encouraging and we are pleased to add further to our exploration portfolio through the acquisition of the Iroko exploration license in Cameroon. In the Kurdistan Region of Iraq, we are integrating the promising results of the two most recent step-out appraisal wells into a full field development plan and have commenced construction of an early production facility. Lastly, we have significantly expanded our ability to fund additional future growth through our first senior unsecured credit facility obtained successfully despite the difficult credit markets, which is a demonstration of the support for Addax Petroleum's strategy and growth potential in the financial community."
Selected Financial Highlights
<<
- Petroleum sales before royalties in the first quarter of 2008
amounted to $1,154 million, an increase of 84 per cent over petroleum
sales before royalties of $627 million in the first quarter of 2007.
The increase in petroleum sales before royalties was primarily driven
by a 66 per cent increase in the average crude oil sales price in the
first quarter of 2008 to $96.03 per barrel (/bbl) as compared to
$57.86/bbl realized in the first quarter of 2007 and a 12 per cent
increase in sales volumes between the same periods. Noteworthy in the
first quarter of 2008 is that oil production exceeded sales volumes
by 0.64 MMbbl, or the equivalent of approximately 7 Mbbl/d, resulting
in a large build of oil in inventory.
- Funds Flow From Operations for the first quarter of 2008 increased
78 per cent to $469 million ($3.02 per basic share) compared to
$263 million ($1.70 per basic share) in the first quarter of 2007.
- Net income in the first quarter of 2008 increased 204% to
$240 million ($1.54 per basic share) compared to $79 million ($0.51
per basic share) in the corresponding period in 2007.
- Capital expenditures increased by 57 per cent to $340 million in the
first quarter of 2008 from $216 million in the first quarter of 2007.
Development capital expenditures totaled $246 million in the first
quarter, an increase of 68 per cent over development capital
expenditure of $146 million in the first quarter of 2007. Exploration
and appraisal capital expenditures increased to $94 million in the
quarter, an increase of 34 per cent over exploration and appraisal
capital expenditures of $70 million in the first quarter of 2007.
- At the end of the first quarter 2008, bank debt totaled
$1,125 million, an increase of $150 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 late April 2008, the Corporation expanded its borrowing capacity
and entered into a 2-year, $450 million senior unsecured bank loan
facility. This loan facility is currently undrawn, but is intended to
provide funding for future growth opportunities through potential
acceleration of or increase in capital expenditure projects and/or
other acquisition opportunities.
The following table summarizes the selected financial highlights:
-------------------------------------------------------------------------
Selected financial highlights Quarter ended
March 31
$ million unless otherwise stated 2008 2007 Change
-------------------------------------------------------------------------
Petroleum sales before royalties 1,154 627 84%
Average crude oil sales price, $/bbl 96.03 57.86 66%
Funds Flow From Operations 469 263 78%
Net income 240 79 204%
Weighted average common shares outstanding
(basic, millions) 156 155 0%
Funds Flow From Operations per share ($/basic
share) 3.02 1.70 78%
Earnings per share ($/basic share) 1.54 0.51 202%
Weighted average common shares outstanding
(diluted, millions) 162 155 5%
Funds Flow From Operations per share
($/diluted share) 2.86 1.70 68%
Earnings per share ($/diluted share) 1.51 0.51 196%
Total assets 4,178 3,113 34%
Long-term debt, excluding convertible bonds 1,125 975 15%
Capital Expenditures - by Region
Nigeria (excluding deepwater) & Cameroon 261 165 58%
Gabon 66 31 113%
Kurdistan Region of Iraq 7 15 -53%
Deepwater Nigeria & JDZ 3 3 0%
Corporate 3 2 50%
Total 340 216 57%
Capital Expenditures - by Type
Development 246 146 68%
Exploration & appraisal 94 70 34%
Total 340 216 57%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Selected New Business Highlights
- During the first quarter of 2008, the Corporation renegotiated an
amended production sharing contract for the Taq Taq license area in
the Kurdistan Region of Iraq, keeping the Corporation's economic and
operational interest materially unchanged. Early in the second
quarter of 2008, Addax Petroleum concluded one strategic acquisition
which increased the Corporation's exploration portfolio, offshore
Cameroon.
- New business highlights to date in 2008 include:
Kurdistan Region of Iraq
- as previously announced in February 2008, the Corporation signed
an agreement with the Kurdistan Regional Government amending the
production sharing contract it holds together with Genel Enerji in
respect of the Taq Taq license area in the Kurdistan Region of
Iraq. The purpose of the amendments was to bring the terms of the
Taq Taq production sharing contract into conformity with recently
enacted oil and gas legislation in the Kurdistan Region of Iraq.
Cameroon
- as previously announced in April 2008, Addax Petroleum acquired a
100% working interest in the Iroko exploration license area,
offshore Cameroon. The Societe Nationale des Hydrocarbures, the
national oil company of Cameroon, holds a back-in right of
30 per cent in case of a development. The Corporation is obligated
to pay a signature bonus of $3 million and undertake a minimum
work program valued at $18 million. There are no wells drilled on
Iroko but there is oil production nearby from the Pecten (Shell)-
operated Mokoko-Abana field complex. The Corporation is presently
undertaking an exploration program on the Ngosso license area
offshore Cameroon, after which it plans to start exploration
drilling on the Iroko license area.
Selected Exploration and Appraisal Highlights
- During the first quarter of 2008, Addax Petroleum had significant
exploration and appraisal success in its program offshore Nigeria and
in the Kurdistan Region of Iraq and also commenced its exploration
program offshore Cameroon. The Corporation also progressed its
exploration and appraisal portfolio in Gabon and the Joint
Development Zone and is planning for exploration and appraisal
activities later in the year.
- Exploration and appraisal highlights to date in 2008 include:
Gulf of Guinea Shallow Water (Nigeria and Cameroon)
- in OML137, two successful appraisal wells were drilled on the
Ofrima North discovery. The Ofrima-3A well confirmed the western
extension of the H42 oil reservoir discovered by the Ofrima-2 well
drilled in 2007 and the Ofrima-3 well discovered 62 feet of oil
and 92 feet of liquids-rich gas in deeper horizons. Development
planning studies for Ofrima North are currently underway;
- in OML123, two wells were successfully appraised at the Kita
Marine and Oron West fields, the results of which are presently
being incorporated into field development options. The ORW-C1AST
well successfully appraised an extension to the producing Oron
West field and the KTM-6 well discovery in March 2008 encountered
an aggregate gross oil column of 173 feet over four zones. The
Kita Marine discoveries lie in the northern part of the prolific
OML123 block offshore Nigeria in an area which has not previously
had production; and
- in Cameroon, the Corporation started its first exploration
drilling campaign. The campaign comprises drilling up to three
exploration wells in the Ngosso license area followed by an
exploration well in the recently-awarded Iroko license area. The
2008 Cameroon exploration drilling campaign is planned to be
completed during the second quarter.
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 second half of
2008. In OPL291, the Corporation is planning to acquire 3D seismic
survey also in the second half of 2008.
Gabon
- the Corporation participated in the unsuccessful THAM-1
exploration well drilled by Sterling Energy to test the Admiral
prospect on the Themis Marin offshore license area. The Themis
Marin license was subsequently relinquished with all work
commitments completed. Onshore Gabon, the Corporation acquired
development and exploration seismic data in its operated Remboue
license area.
Kurdistan Region of Iraq
- in January 2008, the Corporation tested the TT-09 step-out
appraisal and development well on the Taq Taq field in the
Kurdistan Region of Iraq. The TT-09 well tested at an aggregate
oil rate of 16,170 bbl/d from two separate zones.
- in March 2008, the Corporation tested the TT-08 step-out appraisal
and development well on the Taq Taq field in the Kurdistan Region
of Iraq. The TT-08 well tested at an aggregate oil rate of
35,750 bbl/d from two separate zones.
Selected Operational Highlights
- Average gross working interest oil production in the first quarter of
2008 was 139,100 barrels per day (bbl/d) representing an increase of
approximately 20 per cent over the 2007 average production of
116,090 bbl/d. Average oil production in the first quarter of 2008
included 109,700 bbl/d from Nigeria and 29,400 bbl/d from Gabon
compared to a 2007 first quarter average production level of
97,880 bbl/d and 18,210 bbl/d, respectively.
- Development project highlights in the first quarter of 2008 include:
Nigeria
- drilled three new development wells which included one oil
production well and one water injection well in OML123 and one oil
production well in OML124;
- placed a total of two new oil production wells on production in
the quarter which were the two wells drilled in the quarter;
- in OML123, the Oron West South platform was installed while the
first of two platform substructures were installed on the Adanga
North Horst field and water injection pipelines were laid and
facilities commissioned;
Gabon
- drilled seven new development wells onshore of which five,
comprising four oil production wells and one gas injection well,
were in the Addax Petroleum operated Tsiengui field in the Maghena
license area and a further two oil development were wells in the
Shell-operated Koula field in the Awoun license area;
- placed a total of five new oil production wells on production in
the Tsiengui field in the quarter of which two were drilled in the
quarter and three were drilled in the previous quarter;
- 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
- commenced construction of an early production facility; and
- started 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.
- Operating netbacks in the first quarter of 2008 increased 72 per cent
to $72.49/bbl compared to $42.05/bbl in the first quarter of 2007.
Unit operating expenses in the first quarter of 2008 increased to
$8.09/bbl, an increase of 3 per cent over the 2007 level of $7.84/bbl
as the Corporation continues to face cost inflation pressures for the
provision of services.
The following table summarizes selected operational information:
-------------------------------------------------------------------------
Selected operational highlights Quarter ended
March 31
2008 2007 Change
-------------------------------------------------------------------------
Quarter average gross working interest oil
production (Mbbl/d)
Nigeria (offshore) 102.3 92.1 11%
Nigeria (onshore) 7.4 5.8 28%
Nigeria sub-total 109.7 97.9 12%
Gabon (offshore) 7.0 6.3 11%
Gabon (onshore) 22.4 11.9 88%
Gabon sub-total 29.4 18.2 62%
Total 139.1 116.1 20%
Prices, expenses and netbacks ($/bbl)
Average realized price 96.03 57.86 66%
Operating expense 8.09 7.84 3%
Operating netback 72.49 42.05 72%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
Dividend
During the first 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 May 2, 2008 which is payable on June 12, 2008 to shareholders of record on May 29, 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 first quarter of 2008, the Corporation made the following announcements:
- on April 3, 2008, the Corporation announced the acquisition of a
100 per cent interest in and operatorship of the Iroko exploration
license area, offshore Cameroon;
- on May 1, 2008, the Corporation announced the successful appraisal of
the Ofrima North discovery in OML137 offshore Nigeria.
In addition, during April 2008, a new two year loan facility was signed and underwritten for an amount of $450 million, which may increase to $500 million after syndication. This loan facility will be used to provide funding in relation to the acceleration of or increase in capital expenditure projects and/or other acquisition opportunities.
Outlook
The Corporation's production outlook for 2008 is in line with guidance provided to date. Addax Petroleum expects annual average working interest gross oil production for 2008 to be approximately 140,000 to 145,000 bbl/d from its Nigeria and Gabon operations.
Analyst Conference Call
Financial analysts are invited to participate in a conference call today Tuesday, May 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 3424
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 21269672 followed by the number sign until Tuesday, May 20, 2008.
Legal Notice - Forward-Looking Statements
OIL $121 - futures rose to an all-time high near $121 a barrel Tuesday in Asia, fueled by worries about threats to supply and a weakening of the U.S. dollar.
The surge in oil prices was also fueled by hopes that the U.S. economy will be spared a sharp downturn after the release of data Monday showing an unexpected expansion in the U.S. service sector in April, analysts said.
Light, sweet crude for June delivery rose to a record $120.93 a barrel in electronic trading on the New York Mercantile Exchange on Tuesday. The contract later retreated to $120.24 a barrel, up 27 cents from Monday's close.
Crude futures settled on Monday at $119.97 a barrel, up $3.65 from Friday's close.
this was recently posted to the Addax Website [updated pic of the Aban] March 28 - latest publication
http://www.addaxpetroleum.com/_media/2008_%2003_%20UBS_Conference_Presentation_London.pdf
pg. 8-9
Deepwater portfolio is one of the best in the industry with
the largest equity holding in the Joint Development Zone
(JDZ) between Nigeria and Sao Tomé
asset bases will see significant events in 2008/09,
bringing their value to the forefront
Significant Potential
• Exploration blocks on trend with world-class oil fields
• 2007 unrisked prospective resources of 1.2 billion
barrels (476 MMbbl risked)
• Experienced Deepwater exploration and drilling
teams preparing for first well in 2008 with term
contract drilling in 2009