ERHC Energy Inc (ERHE)

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Addax predicting modest growth in Nigeria licences
ADDAX Petroleum is expecting its Nigerian production to grow modestly in 2009, averaging between 108,000 and 112,000 barrels per day, writes Barry Morgan.
Output is expected to increase from OML-123, while production from OML-124 is likely to be flat and OML-126 looks set to decline.

Addax cheif executive Jean Claude Gandur predicted volatility in commodity prices throughout 2009, but said Addax had "set a prudent capital investment programme in place, which it expects to fund internally".

Next year's capital budget for both Nigeria and Cameroon excluding possible acquisitions is $173 million, with another $50 million mooted for deep-water commitments in Nigeria's Exclusive Economic Zone and the Joint Development Zone, administered with neighbouring Sao Tome&Principe.

Another $86 million is earmarked for Gabon, where five exploration/appraisal wells are planned next year. Three such wells are planned for Nigeria, one in Cameroon and another in the Gulf of Guinea.

The exploration period in Gabon for the Gryphon Marin licence expires in November next year and carries a two-well drilling commitment.

In neighbouring Cameroon, the current exploration period for Ngosso expires in the first quarter, after which one well and further 3D seismic will be required.

An Ngosso seismic acquisition campaign is already planned before the end of 2008, completing in the first quarter of 2009.

http://www.upstreamonline.com/hardcopy/news/article166609.ece