Joint Development Zone
Detailed overview
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Block 1 – a 40% working interest
In September 2007 Addax Petroleum and Esso Exploration and Production Nigeria-São Tomé (One) Limited entered into a sale and purchase agreement whereby Addax Petroleum has agreed to acquire Esso Exploration and Production Nigeria-São Tomé (One) Limited’s 40% working interest in Block 1.
- Block 1 is operated by Chevron, which holds a 45.9% working interest
- Block 1 is located approximately 300 km offshore Nigeria and it covers an area of 174,000 acres (704.5 km2). The water depth ranges from approximately 1,600 m to 1,900 m
- Directly west of JDZ Block 2 and directly north of JDZ Blocks 3 and 4, Block 1 contains the only well drilled to date in the JDZ (Obo-1), which encountered hydrocarbons when drilled in 2006
- There are no further exploration commitments on Block 1 during the current exploration phase
- The operator, Chevron, has notified the JDA of its intent to move into the second exploration phase. Addax Petroleum’s financial commitment for the second exploration phase is $10 million. The second exploration phase carries a minimum work commitment of the drilling of one well to a depth of 3,500 metres subsea, acquisition and processing of seismic data, and conducting geophysical and geological studies
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Block 2 – a 14.33% working interest
- March 2006: Participation Agreement signed with ERHC Energy Incorporated (“ERHC”)
- March 2006: Block 2 PSC signed with the JDA
- Sinopec designated as Operator pursuant to a Joint Operating Agreement
Block 2 covers an area of 171,300 acres (693.5 km2). The water depth ranges from approximately 1,300 m to 1,900 m. Block 2 has a minimum work program of one exploration well or a minimum expenditure of $28 million.
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Block 3 – operatorship and a 66% working interest
- February 2006: Participation Agreement signed with ERHC
- March 2006: Block 3 PSC signed with the JDA
- Anadarko designated as Operator pursuant to a Joint Operating Agreement
- August 2009: Addax Petroleum increases its participating interest to 66% by acquisition of 51% and acquires operatorship
Block 3 covers an area of 164,700 acres (667 km2). The water depth ranges from approximately 1,700 m to 2,100 m. Block 3 has a minimum work program of one exploration well or a minimum expenditure of $30 million.
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Block 4 – operatorship and a 45.5% working interest
- November 2005: Participation Agreement signed with ERHC
- March 2006: Block 4 PSC signed with the JDA
- April 2006: Addax Petroleum increases its participating interest to 38.3% by acquisition of 5% participation interest from Overt Ventures Ltd
- July 2007: Addax Petroleum commences arbitration proceedings against ERHC in respect an additional 9% assigned to the ERHC/Addax Petroleum under the Block 4 PSC, whereby Addax Petroleum claimed entitlement to 7.2%
- July 2008: Addax Petroleum increases its participating interest to 45.5% by acquisition of 7.2% participating interest awarded by an independent arbitration tribunal
Block 4 covers an area of approximately 211,700 acres (857 km2). The water depth ranges from approximately 1,800 m to 2,200 m. Seismic data acquired over Block 4 is presently being analyzed to delineate potential drilling locations.