Ngosso

The Ngosso licence area is located in the hydrocarbon prone Rio del Rey Basin, western offshore Cameroon. It lies adjacent to the shore in water depths of up to 8 m and it has similar operational and subsurface geological conditions to OML123 in Nigeria, which is located approximately 20 km to the west.

Description

• Covers an area of 117,100 acres (474 km2)
• Contains several hydrocarbon discoveries, but has not seen any exploration activities for some 20 years

In December 2002, Addax Petroleum signed an agreement with the Republic of Cameroon for the Ngosso licence area. Addax Petroleum is the operator of the Ngosso licence area, with a 60% interest.
A 213 km2 3D seismic acquisition was completed in early 2006, and Addax Petroleum performed detailed evaluation of the seismic data in 2007, identifying eight exploration prospects. Dredging work was undertaken in 2007 to prepare for the exploration drilling campaign on the Ngosso licence area. In 2008 Addax Petroleum drilled the Odiong and Tali prospects to satisfy its initial period exploration commitment. As part of the campaign, a sidetrack to the initial Odiong well was drilled, and resulted in a discovery which was considered uneconomic as a stand-alone development.

Iroko

The Iroko licence area is located approximately 30 km offshore Cameroon where the water depth is in the 40-50 m range.

Description

• Covers an area of 3,900 acres (16 km2)
• In April 2008, Addax Petroleum signed a PSC with the Republic of Cameroon, acquiring a 100% interest and operatorship
• The Société Nationale des Hydrocarbures (“SNH”), the national oil company of Cameroon, holds a back-in right of 30% in case of a development. Initial exploration phase commitments were satisfied in June 2008 by the drilling of the Iroko 1 well and the acquisition of a high resolution 3D seismic survey

Addax Petroleum completed the acquisition of an 80% shareholding interest in Pecten Cameroon Company LCC (PCC) from Shell in October 2011. PCC was subsequently renamed Addax Petroleum Cameroon Company LLC.

Addax Petroleum Cameroon Company has holdings in eleven additional blocks offshore:

Lokele association (%APCC interest)

• 40% interest in Lokele – Mokoko Abana, operated by Addax Petroleum
• 25% interest in Lokele – South Asoma, operated by Perenco
• 32.25 % interest in Lokele – Lipenja, operated by Perenco
• 27.6 % interest in Lokele – Erong North, operated by Perenco

The Lokele Association concession covers a total area of 168km2. There are approximately 130 wells and water injection from 4 of the 11 platforms. The initial phase of development drilling in the permit began in May 1982, with first production beginning in January 1983. There are 11 existing oil-producing platforms. The daily production for Mokoko Abana Production is 15,000 bbl/d of which 6,000 bbl/d is net to Addax Petroleum

Rio Del Rey (%APCC interest):

• 24.5% interest in Rio del Ray – Bavo-Asoma, Boa-Bakassi, Ekoundou Marine, Kita Edem and Kole Marine, operated by Perenco
• 25% interest in Rio del Ray – Sandy Gas, operated by Perenco

Addax Petroleum is in partnership with Perenco, the operator, in the producing Rio del Rey Association, which covers a total area of 858 km2. A total of 405 wells have been drilled, of which 361 are platform wells and 28 are stand-alone exploration wells.

Ekoundou Marine Complex was formed by the underlying Ekoundou Shale Dome. Production began in December 1978 from the S.1, S.2, S.4, and S.5 Zones. The largest producing reservoir in the Ekoundou Complex is the S.4A in the Ekoundou Central Field, with a gross oil rate of 5,560 bbl/d and an average water cut of 55% as at December 2009.

Daily production for Rio Del Rey is approximately 30,000 bbl/d of which 7,300 bbl/d is net to Addax Petroleum.

Dissoni (%APCC interest):

• 37.5% interest in Dissoni – Dissoni North, operated by Perenco

Addax Petroleum is in partnership with Perenco, the operator, in the Dissoni Production Sharing Contract awarded in 2005 and covering an area of 147km2, from which it has been granted an exploitation permit for the Dissoni North area in November 2008.

The Dissoni North Development project first oil is scheduled by 2013. A production plateau above 14,000 bbl/d (5,000 bbl/d net to Addax Petroleum) is expected for mid-2014.