Addax Petroleum boosts stakes in oil blocks and starts exploration in Sao Tome and Principe

28 August 2009

Calgary, Canada, 28 Aug – Canada’s Addax Petroleum said Wednesday in Calgary that it would start operating a second oil block in the Sao Tome and Principe-Nigeria Joint Development Zone (JDZ), where it was launching an exploration campaign.

According to information published on the company’s website, the acquisition of a further 51 percent of the consortium that explores block 3 from Anadarko, “boosts our presence in this world class exploration region and significantly boosts the economic feasibility of the position, making it possible to aggressively explore this wealth with a sustained drilling strategy.”

With the acquisition, the oil company has become the block’s operator, a status which it already had in block 4 of the JDZ.

According to Addax the exploration rig Deepwater Pathfinder has already been received and it will carry out prospecting work in the waters of the Gulf of Guinea.

The results are due to be formally announced in the final quarter of the year.

Addax also participates in block 1, operated by US oil company Chevron, which started exploration work in the JDZ over three years ago.

According to the oil company, in December 2008 the best gross estimates of oil resources in the areas of the Gulf of Guinea in which it was involved, which also included assets in Nigeria, pointed to 3.042 billion barrels.

The portion that corresponds to Addax’s stake in the blocks is 1.359 million barrels, which rises to 1.498 million barrels with its increased stake in block 3 of the JDZ.

Addax Petroleum is the process of being acquired by China’s Sinopec and the deal has already been approved by the Chinese authorities if the offer is accepted by shareholders. (macauhub)