What is the latest (guess) value of our shares after we pay our share in the blocks with Addax? Oil at 40.
Well, it was for discussion purposes, thats all. In this market 1.60 for ERHC today doesnt sound too bad to me. 3.20 would be much better. We would keep the assets that arent in our JV agreements with Addax. FYI: Adddax has 155 million shares outstanding. They paid 1.6 billion cash in a buy out 2 1/2 years ago.
Everyone seen this? Addax is poised for continued growth!
UPDATE 1-Addax Petroleum draws interest from Asian suitors
Fri Feb 13, 2009 5:44am EST Email | Print | Share| Reprints
HONG KONG, Feb 13 (Reuters) - Africa and Middle East-focused oil and gas firm Addax Petroleum (AXC.TO) has attracted buyout interest from major Chinese, Japanese, and Indian energy firms, according to three sources with direct knowledge of the matter.
Toronto and London-listed Addax (AXC.L), with a market value of roughly $2.9 billion, has projects in Nigeria, Gabon, Cameroon, and exploration licences in the Kurdistan region of Iraq.
Chinese offshore oil giant CNOOC (0883.HK)(CEO.N), Japan's Mitsubishi (8058.T), and Indian firms including Oil & Natural Gas Corp (ONGC.BO), have all expressed interest in the firm, sources said.
"Addax has been talked about for a while. Chinese players are looking at it," one of the sources told Reuters, adding that Chinese oil majors continue to scour Africa for quality assets.
"CNOOC has looked at Addax," a second source said.
An Addax spokesman in London declined to comment.
The sources declined to be named due to the sensitive nature of the process, which is at an early stage.
Mitsubishi and CNOOC declined to comment. A New Delhi-based spokesman for ONGC could not comment immediately when asked whether the firm was looking at Addax.
As the global financial crisis curbs consumption and U.S. oil trades below $35 a barrel after nearly reaching $150 last summer, many oil players have struggled to finance new projects and control costs.
But unlike some firms being combed over as low-priced targets during the financial crisis, Addax is not in a distressed situation, dealmakers say. The firm is expected to book $858 million in net profit for 2008, up from $482 million in 2007, according to Reuters Estimates.
"The company has ongoing operations in some of the most socially/politically unstable oil-producing regions in the world, but has proven its ability to grow and generate substantial income," BMO Capital Markets said in a report.
"As most international companies have focused on reducing capital programmes in order to survive 2009, Addax is positioned for continued growth with material catalysts throughout the year," the report said.
AI
