Addax Petroleum (fka AXC)

[Minnesinger]

Here's a reply from DK on the topic...

My question to him, sent today:

Mr Keeney –

In the May 05, 2013, press release by ERHC the company describes their potential farm-out partner as an integrated international oil and gas company. Can you confirm that the term integrated oil and gas company was used and applied in the standard, consensus definition? For reference, please note the definition offered by Investopedia:

Definition of Integrated Oil & Gas Company
A business entity that engages in the exploration, production, refinement and distribution of oil and gas. Given the high entry costs relating to many oil and gas industry operations, many of the world's largest oil and gas companies, like Chevron Corporation and Exxon Mobile, are integrated. Typically, integrated companies divide their various operations into categories: upstream, which includes all exploration and production endeavors, and downstream, which is confined to refinement and marketing activities.

http://www.investopedia.com/terms/i/integrated-oil-gas-company.asp

To be clear, does our potential Kenyan partner engage in the exploration, production, refinement, and distribution of oil and gas? I’ll not ask in what capacity; I just would like unequivocal clarity as to whether, yes or no, they completely fulfill this criteria. If they do not fulfill this criteria, can you please explain how the term integrated applies? Even though you/ERHC are bound by an NDA, I believe you could clarify as to how the term was applied while still adhering to the bounds of confidentiality.

Thank you for your time and consideration.

And DK's response to me:

Yes. I confirm that the definition you provided is aligned with what we mean when using the term.

Sent from my Samsung Replenish

So, as much as I would love Tullow to be our LOI partner, I don't see how they fulfill the criteria of "integrated." I've made a pretty thorough search of their Web site and can find nothing suggesting they, or any subsidiaries, are engaged in the downstream components which would qualify them as being an integrated O&G company.

That said, I'd be very happy to be proven wrong... especially if it came in the way of a PR announcing that ERHC & Tullow have finalized a definitive agreement in Kenya 11A! (And should that announcement come, my congratulations to you, SA, will be most hearty...)