CALGARY, Canada, March 11 /PRNewswire/ --
- Deepwater Exploration Campaign Expected to Commence in the Fourth Quarter of 2009
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.
Reader Advisory Regarding Forward-Looking Information
Certain statements contained in this news release, including statements related to drilling plans, resources estimates, business strategy and goals, development plans and schedules, results of exploration activities and dates that areas may come on-stream, and statements that contain words such as may, will, would, could, should, anticipate, believe, intend, expect, plan, estimate, budget, outlook, propose, project, and statements relating to matters that are not historical fact constitute forward-looking information within the meaning of applicable Canadian securities legislation.
Forward-looking information in this news release is subject to known and unknown risks and uncertainties attendant with oil and gas operations, and other factors, which include, but are not limited to: imprecision resources estimates; ultimate recovery of reserves; commodity prices; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and market margins; the ability to produce and transport crude oil and natural gas to markets; weather and climate conditions; results of exploration and development drilling and other related activities; fluctuation in interest rates and foreign currency exchange rates; 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; international political events; and expected rates of return. More specifically, production may be affected by 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.
In this news release the Corporation has made assumptions with respect to the following:
- Prospective oil resources quantities; - Timing and amount of future production, forecasts of capital expenditures and the sources of financing thereof; - The amount, nature, timing and effects of capital expenditures; - plans for drilling wells and the timing and location thereof; - Expectations regarding the negotiation and performance of contractual rights; - Operating and other costs; - Business strategies and plans of management; and - Anticipated benefits and enhanced shareholder value resulting from prospect development.
The Corporation's actual results could differ materially from those anticipated in these forward-looking statements if the assumptions underlying them prove incorrect, or if one or more of the uncertainties or risks described above materializes. Risk factors are discussed in greater detail in filings made by Addax Petroleum with the Canadian provincial securities commissions.
Readers are strongly cautioned that the above list of factors affecting forward-looking information is not exhaustive. Further, forward-looking statements are made as at the date they are given and, except as required by applicable law, Addax Petroleum does not intend, and does not assume any obligation, to update any forward-looking statements, whether as a result of new information or otherwise. The forward-looking statements contained in this news release are expressly qualified by this advisory.
Reader Advisory regarding Prospective Oil Resources
All estimates of prospective oil resources in this news release are as at December 31, 2008, as set out in Addax Petroleum's Annual Information Form dated March 4, 2009 (AIF), which can be found at www.sedar.com or www.addaxpetroleum.com.
Prospective oil resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The prospective oil resources indicate exploration opportunities and development potential in the event a commercial discovery is made and should not be construed as reserves or contingent resources. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. All resources quantities disclosed in this news release are based on best estimate. Further information on high and low estimates for prospective resources can be found in Addax Petroleum's AIF.
For further information: Mr. Craig Kelly, Investor Relations, Tel: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Mr. Chad O'Hare, Investor Relations, Tel: +41(0)22-702-94-10, chad.o'hare@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. Mark Antelme, Press Relations, Tel: +44(0)20-3178-6242, mark.antelme@pelhampr.com
For further information: Mr. Craig Kelly, Investor Relations, Tel: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Mr. Chad O'Hare, Investor Relations, Tel: +41(0)22-702-94-10, chad.o'hare@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. Mark Antelme, Press Relations, Tel: +44(0)20-3178-6242, mark.antelme@pelhampr.com
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