Addax Petroleum Increases Interest in JDZ Exploration Block
Addax Petroleum has increased its participating interest in Block 4 of the Nigeria/Sao Tome and Principe Joint Development Zone ("JDZ") from 33.3 per cent to 38.3 per cent by acquiring the 5 per cent participating interest held by Overt Ventures Ltd. The assignment of Overt's interest to Addax Petroleum has been approved by the Nigeria/Sao Tome and Principe Joint Development Authority. Addax Petroleum is the operator of Block 4.
Commenting on the acquisition Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said, "We believe that the JDZ offers world-class exploration potential. This acquisition follows our strategy of investing in the JDZ as a core exploration area for Addax Petroleum."
In return for obtaining Overt's 5 per cent participating interest in Block 4, Addax Petroleum is obligated to pay:
- US$10 million to Overt as consideration for the interest, and
- US$5 million to the JDA comprised of a US$4.5 million signature bonus associated with the acquisition of the 5 per cent participating interest in Block 4 and an assignment administration fee of US$0.5 million.
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 is presently being analyzed to delineate potential drilling locations.
Nigeria-Sao Tome & Principe JDZ
The 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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