Addax to drill off Nigeria in the fourth quarter

Addax Petroleum plans in the fourth quarter to start its deepwater drilling program, including the Kina prospect in the Joint Development Zone between Nigeria and Sao Tome & Principe.

March 14, 2009

Uchenna Izundu
OGJ International Editor

LONDON, Mar. 14 -- Addax Petroleum Corp., Calgary, plans in the fourth quarter to start its deepwater drilling program, including the Kina prospect in the Joint Development Zone (JDZ) between Nigeria and Sao Tome & Principe.

The company will use the Deepwater Pathfinder drillship, which can operate in water as deep as 3,048 m. Transocean Inc. will deliver the vessel at the end of the third quarter upon its completion of drilling for another operator in Nigeria.

The drillship, a fifth-generation rig, will drill four wells for Addax with a minimum commitment of 120 days. Transocean will charge a day rate of "$600,000 to be allocated pro rata to Addax Petroleum and its applicable co-contractor parties," said Addax.

Addax's deepwater portfolio includes interests in four license areas: OPL291, off Nigeria; and Blocks 1, 2, and 3 in the JDZ between Nigeria and Sao Tome and Principe. Addax operates JDZ Block 4 and OPL291, while Chevron, Sinopec, and Anadarko operate JDZ Blocks 1, 2 and 3, respectively.

Addax's interests in these assets are estimated to hold unrisked prospective oil resources of 1,359 million bbl (493 million bbl risked), according to an independent report by Netherland, Sewell & Associates Inc.