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Addax Petroleum secures fifth generation drillship to commence deepwater exploration in 2009
Wednesday March 11, 6:27 am ET
Deepwater exploration campaign expected to commence in the fourth quarter
of 2009
CALGARY, March 11 /PRNewswire-FirstCall/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC), today announces that it has signed an agreement with a subsidiary of Transocean ("Transocean") for the provision and operation of the Deepwater Pathfinder drillship to commence its deepwater exploration drilling campaign.
Addax Petroleum expects to receive delivery of the Deepwater Pathfinder at the end of the third quarter 2009 and intends, subject to Joint Development Authority approval, to commence the drilling of the Kina prospect in Block 4 of the Joint Development Zone shortly thereafter.
Commenting, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "We are extremely pleased to have resourced one of the premium drilling rigs available on the market today for our deepwater exploration campaign.
The Deepwater Pathfinder has proven that it is exceptionally capable and has drilled efficiently for other operators in the deepwater Gulf of Guinea. Commencing Addax Petroleum's deepwater exploration campaign will be a very exciting time for our organization and shareholders given that our deepwater inventory consists of numerous sizeable prospects which, if successful, have the potential to significantly enhance the Corporation's recoverable reserves."
The Deepwater Pathfinder is a fifth generation dynamically positioned deepwater drilling rig capable of drilling in water depths up to 3,048 metres.
The contract with Transocean requires the Deepwater Pathfinder to drill four wells in total with a minimum commitment of 120 days.
The Transocean contract anticipates that the Deepwater Pathfinder will start drilling operations in the fourth quarter of 2009 once it has completed a drilling campaign for a third party operator in Nigeria.
Payments under the contract are based on a day rate charging structure and a day rate of $600,000 to be allocated pro rata to Addax Petroleum and its applicable co-contractor parties.
Addax Petroleum has a deepwater exploration portfolio that consists of interests in five license areas comprised of OPL291, offshore Nigeria, and Blocks 1, 2, 3 and 4 in the Joint Development Zone ("JDZ") between Nigeria and the Republic of Sao Tome and Principe.
Addax Petroleum operates JDZ Block 4 and OPL291 while Chevron, Sinopec and Anadarko operate JDZ Blocks 1, 2 and 3, respectively. As at December 31, 2008, Netherland, Sewell & Associates Inc., independent oil and natural gas reservoir engineers ("NSAI"), estimates the Corporation's working interest best estimate unrisked prospective oil resources for its deepwater portfolio to be 1,359 MMbbl (493 MMbbl risked).
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 8.8 Mbbl/d for 1998 to an average of 136.5 Mbbl/d for 2008. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.
Source: Addax Petroleum Corporation
