Addax Petroleum Secures Deep Water Drillship



    /NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED
    STATES, AUSTRALIA OR JAPAN/

    Exploration drilling campaign in the Gulf of Guinea deep water to start
    in mid-2008

    CALGARY, March 6 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the "Corporation" or "AP") (TSX: AXC), today announces that, through a
wholly-owned subsidiary, it has entered into an agreement with Aban Abraham
Pte Ltd ("Aban"), a wholly owned subsidiary of Aban Offshore Limited,
publicly-quoted on Indian stock exchanges, for the provision of the Aban
Abraham deep water drillship to start drilling operations as early as the
second quarter of 2008.
    Commenting today, Addax Petroleum's President and Chief Executive
Officer, Jean Claude Gandur, said: "I am delighted that Addax Petroleum has
secured the necessary drilling capability on competitive terms. This contract
will enable us to advance our plans to demonstrate the considerable value in
our highly prospective Gulf of Guinea deep water exploration portfolio which
we have assembled throughout 2006. Our contract with Aban will enable us to
complete an extensive exploration and appraisal program which I believe has
the potential to realise considerable value for Addax Petroleum, its
shareholders and stakeholders."
    The contract, which has been entered into jointly by Addax Petroleum and
Sinopec, requires Aban to drill up to ten wells in total comprising five firm
well slots and five optional well slots. Well slots will be allocated under a
separate agreement between Addax Petroleum and Sinopec. It is intended that
firm well slots will be allocated to Addax Petroleum to satisfy its minimum
work commitments on operated blocks in the deep water Gulf of Guinea. The Aban
contract anticipates that the Aban Abraham will start drilling operations as
early as the second quarter of 2008 once it has completed a drilling campaign
for a third party operator. Payments under the contract are based on a day
rate charging structure and a maximum day rate of $410,000, to be allocated
appropriately to Addax Petroleum and its relevant co-venturers.
    Addax Petroleum holds interests in four deep water licences in the Gulf
of Guinea. These are Blocks 2, 3 and 4 in the Joint Development Zone ("JDZ")
between Nigeria and the Republic of Sao Tome and Principe and OPL291 offshore
Nigeria. Addax Petroleum operates JDZ Block 4 and OPL291 and JDZ Blocks 2 and
3 are operated by Sinopec and Anadarko, respectively. Under the terms of the
production sharing contracts for the Addax Petroleum operated properties, the
co-venturers have committed to minimum work programs that include three
exploration wells on JDZ Block 4 and one well on OPL291. The Aban contract
ensures that Addax Petroleum, as operator on behalf of the co-venturers, will
have the drilling capacity required to meet its minimum work program
obligations. Addax Petroleum's deep water exploration portfolio is summarised
in the following table:

    
      Addax Petroleum's Gulf of Guinea Deep Water Exploration Portfolio

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                         Additional
                                    Addax                 Interest
                                  Petroleum              Carried by  Minimum
                                Participating    Net       Addax      Well
    Area     Block   Operator      Interest     Acres    Petroleum   Program
                                     (%)       (acres)      (%)      (gross)
    -------------------------------------------------------------------------
      JDZ      2     Sinopec        14.3%       24,500      7.3%        1
               3     Anadarko       15.0%       24,700     10.0%        1
               4        AP          38.3%       81,100     17.7%        3
    Nigeria  OPL291     AP          72.5%      230,600     27.5%        1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    About the Aban Abraham

    The Aban Abraham is a deep water drill ship currently undergoing
extensive refurbishment and modification at the Sembawang Shipyard in
Singapore. The Aban Abraham was built in Holland in 1976 as a world class
second generation drillship named the Pelerin. The drillship was operated from
1976 to 2002 in water depths of up to approximately 1,400 metres (4,600 feet)
offshore west Africa, Norway, eastern Canada and Brazil and then cold-stacked
until 2006 when purchased by Aban. When refurbishment is completed, scheduled
for later this year, the drill ship will be capable of drilling in water
depths of up to 2,100 metres (6,900 feet) having been upgraded from second
generation to fourth generation capability. Once commissioned, the Aban
Abraham will undertake drilling operations for a third party operator before
starting drilling operations for Addax Petroleum.

    About Addax Petroleum

    Addax Petroleum is an international oil and gas exploration and
production company with a strategic focus on 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 90,000 bbl/d in 2006. Further information about
Addax Petroleum is available at www.addaxpetroleum.com or at 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" 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, and environmental
matters. 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 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:

For further information: Mr. Patrick Spollen, Investor Relations, Tel.
+41 (0) 22 702 95 47, patrick.spollen@addaxpetroleum.com; Mr. Mac Penney,
Press Relations, Tel.: (416) 934-8011, mac.penney@cossette.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

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