ERHC Energy Inc (ERHE)

[RUBY1100]

UPDATE 1-Addax to pay $77.6 mln for Gulf of Guinea oil block

Wed Sep 26, 2007

LAGOS, Sept 26 (Reuters) - Canada's Addax Petroleum Corp. (AXC.TO: Quote, Profile, Research) has agreed to buy a 40 percent stake in block one of Nigeria and Sao Tome and Principe's Joint Development Zone (JDZ) in the Gulf of Guinea for $77.6 million, the company said on Wednesday.

Esso Exploration and Production Nigeria-Sao Tome Ltd, which holds the interest, will also receive 2 percent of Addax's share of profit oil produced from the block, Addax said in a statement.

The completion of the sale and purchase agreement is subject to the approval of the JDZ, the company said.

Addax Chief Executive Jean Laude Gandur said the acquisition will expand and strengthen the company's position in the Gulf of Guinea which is rated as one of the most prolific hydrocarbons regions in the world.

"I believe this acquisition to be an important building block in our broader deepwater Gulf of Guinea portfolio that will deliver value to our shareholders and stakeholders," Gandur said in the statement.

Block one, which was one of the most sought after acreages during a 2004 licensing round, is operated by U.S. energy giant Chevron (CVX.N: Quote, Profile, Research) with a 45.9 percent working interest.