CALGARY, Canada, January 21 /PRNewswire/ --
- TT-09 Appraisal Well Flows at an Aggregate Rate of 16,170 Barrels per day
Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) today announced flow test results for the TT-09 well, the fifth appraisal and development well recently drilled on the Taq Taq field by Taq Taq Operating Company, the joint venture company formed by Genel Enerji A.S. ("Genel") and Addax Petroleum to carry out the petroleum operations in the Taq Taq license area.
Two reservoir intervals were tested separately and flowed at an aggregate rate of 16,170 bbl/d of light oil, measured gravity of 48 degrees API with low gas oil ratio. The intervals tested were a 231 meter completion interval in the Shiranish formation which flowed at a rate of 2,580 bbl/d and a 104 meter interval in the Kometan formation which flowed at a rate of 13,590 bbl/d. The testing of the third formation, the Qamchuqa formation, experienced completion problems and produced test results which the Corporation believes are not representative of the formation. Oil flow rates from the Shiranish and Kometan intervals were restricted by 40/64" and 128/64" choke sizes respectively. Evaluation of these flow test results is ongoing.
Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "The success of our appraisal program at Taq Taq continues to be very encouraging and is a significant further step towards our goal of producing first commercial oil in the second half of 2008. We are pleased with the positive and proactive nature of our partners in the Kurdistan Regional Government and we are delighted that Addax Petroleum has been and continues to be at the forefront of the development of this fast emerging oil region."
TT-09 is a step-out well located approximately 1.7 kilometres southwest of the TT-04 well, which was located near the crest of the Taq Taq field. TT- 09 is the first of two wells designed to appraise the flanks of the Taq Taq structure. The TT-09 well was spudded the last day of August and completed drilling in the end of October at a total depth of 2,444 metres. Testing of TT-09 commenced in mid-December, 2007. Interpretation of data acquired from TT-09, including wireline and 27 metres of core, confirmed the presence of a significant and extensive fracture system in the tested formations as observed in the TT-04, TT-05, TT-06 and TT-07 wells.
The TT-09 well is the fifth of a six well drilling and seismic appraisal program by Addax Petroleum and Genel. The drilling of the sixth appraisal well, TT-08, has been completed and is being prepared for flow testing. The TT-08 well is located approximately 1.7 kilometres east of the TT-04 well along the minor axis of the Taq Taq field. In addition to the ongoing drilling program, Addax Petroleum and Genel have recently completed shooting 290 square kilometres of 3D seismic over the Taq Taq field. The results of the drilling and seismic appraisal program are being integrated into a full field development plan which Addax Petroleum and Genel expect to commence implementing in 2008. The first stage of a full field development plan is expected to include an early production system with the goal of producing approximately 10 Mbbl/d during the second half of 2008 from the Taq Taq field.
Addax Petroleum and Genel have also recently finalized the acquisition of 175 kilometres of 2D seismic over the Kewa Chirmila prospect and surrounding area, which is in the same license area as the Taq Taq field. A second, larger drilling rig has been contracted by Addax Petroleum and Genel and is expected to be mobilized for spudding the first exploration well at Kewa Chirmila during the second quarter of 2008.
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 8,800 bbl/d for 1998 to an average of approximately 126,000 bbl/d for 2007. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at http://www.sedar.com.
Legal Notice - Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "may", "will", "should", "could", "would" or other similar wording. Forward- looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, environmental matters, government approvals and completion of current negotiations. By its very nature, such forward-looking information requires Addax Petroleum to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors include, but are not limited to: imprecision of reserves and resources estimates; ultimate recovery of reserves; prices of oil and natural gas; general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil prices; refining and marketing margins; the ability to produce and transport crude oil and natural gas to markets; the ability to market and sell natural gas under its production sharing contracts; the effects of weather and climate conditions; the results of exploration and development drilling and related activities; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Addax Petroleum. More specifically, production may be affected by such factors as exploration success, start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling, and drilling progress. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Addax Petroleum with the Canadian provincial securities commissions.
Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Addax Petroleum does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
For further information: Mr. Patrick Spollen, Investor Relations, Tel: +41(0)22-702-95-47, patrick.spollen@addaxpetroleum.com; Mr. Craig Kelly, Investor Relations, Tel: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Ms. Marie-Gabrielle Cajoly, Press Relations, Tel: +41(0)22-702-94-44, marie-gabrielle.cajoly@addaxpetroleum.com; Mr. Nick Cowling, Press Relations, Tel: +1-416-934-8011, nick.cowling@cossette.com; Mr. James Henderson, Press Relations, Tel: +44(0)20-7743-6673, james.henderson@pelhampr.com; Mr. Alisdair Haythornthwaite, Press Relations, Tel: +44(0)20-7743-6676, alisdair.haythornthwaite@pelhampr.com
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