Addax Petroleum announces acquisition onshore Gabon with immediate exploration drilling



    
    Potential farm-in for 50 per cent interest of Ogueyi licence area
    including currently drilling Azango exploration well
    

    CALGARY, May 14 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or
the "Corporation") (TSX: AXC and LSE: AXC) today announced that it has agreed
to fund an exploration well in the Ogueyi licence area, onshore Gabon, with
the potential to earn a 50 per cent interest in the licence area. Perenco, as
operator of the Ogueyi licence area, has recently spudded the exploration well
targeting the Azango prospect.
    Commenting, Jean Claude Gandur, President and Chief Executive Officer of
Addax Petroleum said: "We are pleased to have acquired a potential interest in
the Ogueyi licence area as this continues our strategy to build our property
portfolio around core producing areas. This is also a demonstration of Addax
Petroleum's commitment and concerted focus on growth from exploration and
provides good potential for an almost immediate impact to the Corporation."
    The Ogueyi licence area is an exploration block with a gross area of
1,339 km(2) (330,900 acres) on the eastern edge of the Port Gentil basin,
onshore Gabon. The Port Gentil basin is a well-established hydrocarbon
province, producing mainly offshore from post salt formations of late
Cretaceous age. The operator of the Ogueyi licence area has identified several
prospects and leads on the block which is covered by a suite of approximately
2,551 km of 2D seismic data. The Azango prospect in the Ogueyi licence area
was spudded in early May 2009 and is expected to reach a total depth of 1,685
metres in June 2009.
    Operations for the Ogueyi licence area are conducted under a production
sharing contract with fiscal terms similar to the other licence areas which
Addax Petroleum holds in Gabon. The production sharing contract is in its
second exploration phase due to expire in July 2009, however, a two year
extension has already been negotiated by the operator. The commitments under
the second exploration phase will be fulfilled with the drilling of the Azango
prospect.
    Under the terms of the farm-in with Perenco, Addax Petroleum has agreed
to fund the Azango exploration well up to a maximum cost of $8 million. In
addition, Addax Petroleum has the option to make additional staged payments to
Perenco based on future exploration results in order to obtain a 50 per cent
interest in the licence area. The ultimate assignment of the 50 per cent
interest by Perenco to Addax Petroleum would be subject to the approval of the
Government of Gabon. The Government of Gabon also retains a 10 per cent
back-in right in the event of a commercial development.

    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 134.7 Mbbl/d for the first quarter of 2009. 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, development plans and schedules, future seismic
activity, production levels and sources of growth thereof, results of
exploration activities and dates that areas may come on-stream, future capital
expenditures, business strategy and goals, 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 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 of reserves and 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:
    -   prices for oil sales;
    -   oil reserves and resource quantities and the discounted present value
        of future net cash flows from these reserves and the ultimate
        recoverability of reserves;
    -   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;
    -   anticipated benefits and enhanced shareholder value resulting from
        prospect development and acquisitions; and
    -   treatment under the fiscal terms of Production Sharing Contracts and
        governmental regulatory regimes.
    

    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
new release are expressly qualified by this advisory.





For further information:

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.: (416) 934-8011, nick.cowling@cossette.com, Mr. Mark Antelme, Press
Relations, Tel.: +44 (0) 20 3178 6242, mark.antelme@pelhampr.com

Organization Profile

ADDAX PETROLEUM CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890