Addax Petroleum (fka AXC)

[Gremlin9999]

There has been some discussion if it Cespa/Erhc has officially entered into phase 2 in Kenya. I asked DK if he could confirm that Cespa/Erhc has entered into phase 2. Below is Dan's reply:

From DK:

Thanks for your note. The most recent shareholder update had a subheadline that stated, "Proceeding with Exploration Phase 2 in Kenya Block 11A," and in the text of the update the company explained, "Under the second phase of exploration, which lasts a further two years from the end of the first phase, CEPSA Kenya Limited (a wholly owned affiliate of Compañía Española de Petróleos, S.A.U. (CEPSA)) and ERHC are required to either acquire 3D seismic or proceed directly to drilling one exploration well during the additional two-year exploration period."

So yes, the second phase of exploration is underway. The contracting parties are in the process of identifying the most highly prospective areas through processing, interpreting and analyzing the data that has been gathered to date. They will then determine whether additional 3D seismic is needed or if they have a high enough level of confidence with the existing data to move directly to drilling.

Sincerely,

Daniel Keeney, APR
DPK Public Relations

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