OT: Addax keeps on rolling
good morning all
Our partner just knows how to deliver the goods .....bodes well for ERHC Energy
Baz
Addax Petroleum increases Gabon production to over 30,000 barrels per day one year after acquisition
/NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED
STATES, AUSTRALIA OR JAPAN/
Addax Petroleum total production exceeds 140,000 barrels per day for
first time
CALGARY, Sept. 13 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the "Corporation") (TSX/LSE:AXC) is pleased to announce that one year after
the acquisition of the operations of Pan Ocean Energy Corporation Limited
("Pan Ocean"), it has increased production more than three-fold to in excess
of 30,000 barrels per day. In addition to this strong production growth, the
Corporation announced in January 2007 a 45 per cent increase in its gross
working interest proved plus probable reserves as at December 31, 2006. This
substantial growth has been achieved primarily by increasing organisational
capabilities, operating an intensive drilling campaign and constructing
related production and export facilities.
Commenting, Jean Claude Gandur, President and Chief Executive Officer of
Addax Petroleum said: "We are extremely pleased with the results of our first
year of operations in Gabon during which we have significantly increased
production, booked a large increase in reserves and have become an integral
operator in the country. We were confident that our additional investment and
results based approach would facilitate this growth and are pleased to
demonstrate our achievements to shareholders. Our property portfolio in Gabon
has been a large contributor to achieving daily production in excess of
140,000 barrels per day, continues to be a good complement to our operations
in Nigeria and has become a vital component of Addax Petroleum's future."
Background
Addax Petroleum completed the acquisition of the exploration and
production assets of Pan Ocean in September 2006. The assets acquired consist
primarily of the operated, onshore Maghena, Panthere NZE and Remboue license
areas containing the producing Tsiengui, Obangue and Remboue oil fields and
the Autour oil discovery. The assets acquired also included the non-operated
onshore Awoun license area containing the Koula oil field development and the
Damier oil discovery, and the non-operated offshore Etame Marin license area
which contains the Etame, South Tchibala/Avouma and the Ebouri oil fields.
During the first year of ownership Addax Petroleum has, on its operated
onshore properties, focussed primarily on the production and reserves
development in addition to preparing for future exploration and, on both the
non-operated onshore and offshore properties, has been proactive with its
partners to encourage increased development and exploration activity.
Accordingly, through activity and investment since acquisition, Addax
Petroleum has grown significantly its business in Gabon in terms of
production, reserves, exploration potential and organisational capability.
Production and Development
Since the acquisition of Pan Ocean in early September, 2006, gross oil
production from Addax Petroleum's Gabon assets, tabulated below, has grown
steadily from an average of 9.2 Mbbl/d to 26.5 Mbbl/d. Presently, oil
production is approximately 30 Mbbl/d barrels per day. Much of the production
increase has occurred in the past month as the Corporation has overcome and
corrected a number of minor operational issues onshore which had otherwise
constrained production.
<<
Mbbl/d 2006 2007
---- ----
Sept Q4 Q1 Q2 Jul Aug
-------------------------------------------------------------------------
Onshore, operated 3.8 7.3 12.0 12.5 12.4 20.1
Offshore, non-operated 5.4 5.1 6.3 6.4 6.4 6.4
-------------------------------------------------------------------------
Total Gabon 9.2 12.4 18.3 18.9 18.8 26.5
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
Year-over-year production increases have been driven by a high level of
development activity on the main Addax Petroleum operated onshore producing
Tsiengui and Obangue fields including bringing 14 new wells on production,
adding a second dedicated drilling rig, expansion of related production and
export facilities including the commissioning of a new 30-kilometre, 10-inch
export pipeline. The development of the Tsiengui and Obangue fields will
continue into 2008. There is also increased development activity on the
Corporation's non-operated properties, where the development has commenced for
the onshore Koula field in Awoun and the offshore Ebouri field in Etame Marin.
As Addax Petroleum expects to continue growing production from onshore Gabon
beyond its current export capacity, the Corporation has commenced the
extension of its export system, including a new 38-kilometre, 12-inch pipeline
which will allow for further increases in production by availing of spare
capacity through the Shell operated Rabi station. The Corporation expects the
expanded export system to be commissioned in the second half of 2008.
Addax Petroleum expects its Gabon production to average approximately
30 Mbbl/d for the remainder of 2007, subject to sufficient pipeline capacity
from another operator, and in combination with the Corporation's Nigeria
operations, overall production is expected to average in excess of 140 Mbbl/d
for the remainder of 2007. Addax Petroleum surpassed the 140 Mbbl/d production
level for the first time in the Corporation's history in early September 2007.
In Gabon, and as previously announced by Addax Petroleum on January 18,
2007, Addax Petroleum's gross working interest proved plus probable reserves
were estimated by the Corporation's independent reservoir engineers,
Netherland, Sewell and Associates, to be 98.2 MMbbl as at December 31, 2006.
This represented an increase of 45 per cent over the reported gross working
interest proved plus probable reserves of 67.5 MMbbl as at December 31, 2005
as estimated by the previous operator's independent reserve engineers.
Exploration and Appraisal
Whereas production development and growth has been the primary focus in
this first year, the Corporation has been active to progress the exploration
potential of its Gabon licenses, particularly onshore. The Corporation has
commenced a 164 km(2), 3D seismic acquisition campaign on the onshore Maghena
and Awoun license areas and on the Panthere NZE license area, drilled a
successful appraisal well at the Autour field and plans to appraise further in
2008. The Corporation's onshore operated exploration position was further
increased through the acquisition, subject to government consent, of a 50 per
cent interest in the Epaemeno license area, immediately north of the
Corporation's Maghena and Awoun license areas.
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 123,000 bbl/d for the second quarter of
2007. Further information about Addax Petroleum is available at
www.addaxpetroleum.com or at www.sedar.com.
Legal Notice - Forward-Looking Statements
Certain statements in this press release constitute forward-looking
statements under applicable securities legislation. Such statements are
generally identifiable by the terminology used, such as "anticipate',
"believe', "intend", "expect", "plan", "estimate", "budget', "outlook',
"may", "could", "should", "would" 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, and environmental matters. 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 effects of weather and climate conditions; the
results of exploration and development drilling and related activities;
fluctuation 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, 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 press release is made as of the
date of this press release 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 press release is expressly qualified by this cautionary
statement.
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 (
