Addax Petroleum (fka AXC)

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Addax Petroleum in the JDZ

Joint Development Zone
Highly prospective exploration blocks

Click on thumbnail to view full-size mapAddax Petroleum made a significant addition to its high quality asset base in 2006 when it acquired substantial positions in three highly prospective exploration blocks in the Joint Development Zone (the JDZ).

The JDZ lies approximately 180km offshore in the Gulf of Guinea, one of the most prolific hydrocarbon regions in the world. In 2001, Nigeria and the Democratic Republic of Sao Tome and Principe signed a formal treaty for the joint development of petroleum and other resources in this area. The treaty established the JDZ and an administrative body, the Joint Development Authority, JDA, to oversee the implementation of the treaty and underlying development plan.

JDZ Area description
Covers an area of 34,548km2 with water depths ranging from approximately 1,500 meters in the northern part of the JDZ to over 3,500 meters in the south western sector.
The first licensing round for the JDZ was announced in April 2003 from which the first Production Sharing Contract (PSC) was signed in February 2005 for Block 1
The second licensing round for the JDZ was announced in November 2004 which made an additional 5 blocks available
In March 2006, Addax Petroleum acquired interests in JDZ Blocks 2, 3 and 4.

Block 2 – a 14.33 per cent participation interest
March 2, 2006: Participation Agreement signed with ERHC Energy Incorporated (“ERHC”)
March 15, 2006: Block 2 PSC signed with the JDA
Sinopec designated as Operator pursuant to a Joint Operating Agreement
Block 2 covers a gross area of 692 km2 (170,993 acres). The water depth ranges from approximately 1,300 to 1,900 meters. Seismic data acquired over Block 2 is presently being analyzed to delineate potential drilling locations.

Block 3 – a 15 % participation interest
February 2006: Participation Agreement signed with ERHC
March 15, 2006: Block 3 PSC signed with the JDA
Anadarko designated as Operator pursuant to a Joint Operating Agreement
Block 3 covers a gross area of 666 km2 (164,569 acres) and the water depth ranges from approximately 1,700 to 2,100 meters. Seismic data acquired over Block 3 is presently being analyzed to delineate potential drilling locations.

Block 4 – Operatorship and a 38.3% participation interest
November 2005: Participation Agreement signed with ERHC
March 15, 2006: Block 4 PSC signed with the JDA
April 13, 2006: Addax Petroleum increases participation interest from 33.3% to 38.3% by acquisition of 5% participation interest from Overt Ventures Ltd.
Block 4 covers a gross area of 857 km2 (211,773 acres) and the water depth ranges from approximately 1,800 to 2,200 meters. Seismic data acquired over Block 4 is presently being analyzed to delineate potential drilling locations.

http://www.addaxpetroleum.com/operations/jdz