Addax may have up to 45.5% in BL 4
Recall - they got 5% more from Overt Ventures
Addax Petroleum's interest in JDZ4 if and when we receive the [ERHC/Godsonic] transfer would be 45.5% - and not 40.5%. Their number of 40.5% is missing the 5% that we acquired from Overt Ventures Ltd. in April 2006 (ie: currently have an interest of 38.3%).
Kind regards,
Craig
Craig E. Kelly, C.A.
Finance Manager - Corporate Mergers & Acquisitions
Addax Petroleum Corporation
SEC filing on 8/9/2007
On March 15, 2006, an agreement to assign 9% in Block 4 to Godsonic was entered into between ERHC and Godsonic subject to Godsonic meeting stipulated financial and other conditions. By a further Amendment made on April 11, 2006 to the Participation Agreement, ERHC and Addax provisionally agreed that if Godsonic did not meet the obligations on the 9% interest to be transferred to Godsonic and was foreclosed from all claims to the 9% interest, ERHC would transfer 7.2% out of the 9% interest to Addax so that Addax’s participating interest would be 40.5% in aggregate and ERHC’s participating interest would be 19.5% in aggregate. See Note 7.
Under the Participation Agreement between ERHC and Addax, as variously amended, Addax will serve as operator and pay all of ERHC’s future costs in respect of all petroleum operations in Block 4. Addax is entitled to 100% of ERHC’s share of oil production until Addax recovers ERHC’s costs.