Addax Defends Subsidary, Legality of Nigeria Deal

Addax Petroleum announced that it is defending itself from reports in the recent proceedings of the Ad Hoc Committee of the House of Representatives on the investigation of the activities and operations of the Nigerian National Petroleum Corporation which repeat allegations of corporate misconduct by a subsidiary of Addax Petroleum which acquired an interest in a Nigerian Oil Prospecting License (OPL) 291 in 2006. The Corporation regards these allegations as without foundation and is taking all available steps to defend itself against them. The award of OPL291 to the Corporation's partner, Starcrest Nigeria Energy Limited, has previously been upheld by the appropriate authorities in Nigeria and the terms of the Corporation's acquisition of its interest in OPL291 from Starcrest were arms length, commercial, transparent and fully disclosed at the time.