The deal entitles Addax to a 33.3-percent participating interest pursuant to a participation agreement with ERHC Energy relating to Block 4. Addax will be the operator of this block.
Addax also signed a further PSC with the JDA relating to Block 3 of the JDZ. This contract gives Addax a 15-percent participating interest under the joint operating agreement relating to this Block. An Anadarko subsidiary is the operator.
"I am delighted that Addax Petroleum has achieved prominent equity positions and operatorship in this highly prospective exploration area," said Addax CEO Jean Claude Gandur. "We are excited about the potential these assets offer our company and its shareholders."
Block 4 covers a gross area of 857 square kilometers (211,773 acres), and the water depth ranges from approximately 1,800 to 2,200 meters. Seismic data acquired over Block 4 are being analyzed to delineate potential drilling locations. Under the terms of the JDA, Addax must pay a signature bonus of US$23.4 million and its share of a minimum committed work program of three exploration wells or a minimum expenditure of $53 million.
Block 3 covers a gross area of 666 square kilometers (164,569 acres). The water depth ranges from approximately 1,700 to 2,100 meters. Seismic data acquired over Block 3 are being analyzed to delineate potential drilling locations. The PSC obligates Addax to pay a $2 million signature bonus and the company's share of a minimum committed work program of one exploration well or a minimum expenditure of $30 million.
The Nigeria-Sao Tome & Principe JDZ is located approximately 200 kilometres offshore Nigeria and is adjacent to areas where several large petroleum discoveries have been made. The JDZ was established in 2001 following the ratification of a formal bilateral treaty between Nigeria and the island nation of Sao Tome and Principe. The JDZ is administered by the JDA.
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