OML124, Addax Petroleum’s sole onshore property in Nigeria, is located in Imo State approximately 100 km north of Port Harcourt. OML124 is Addax Petroleum’s smallest Nigerian licence area when measured by production.

Description

• Covers an area of 74,100 acres (300 km2) on the northeast edge of the Niger Delta
• Contains two producing oil fields, Ossu and Izombe, which are operated as a common production area, and one undeveloped field, Njaba, discovered in December 2008
• Contains several identified exploration prospects yet to be drilled and tested.

OML123 is Addax Petroleum’s largest licence area as measured by reserves and production and is located offshore approximately 60 km south of the town of Calabar in the south-eastern part of Nigeria, in the Gulf of Guinea.

Description

• Covers an area of 90,700 acres (367 km2) in water depths ranging from 3 to 40m
• Contains nine producing oil fields (Adanga, Oron West, North Oron, Ebughu and extensions, Adanga North Horst, Inagha, Akam, Bogi and Mimbo), two undeveloped oil fields (Kita Marine and Antan) three unappraised oil discoveries (Adanga East, Adanga West and Ebughu NE-A), a large 8,600 acre (35 km2) undeveloped gas discovery (Oron East) and several exploration prospects

OML126 and OML137 are two contiguous blocks located 90 km offshore, south of Port Harcourt, in water depths ranging between 50 m and 210 m. Combined, they represent Addax Petroleum’s largest Nigerian properties as measured by area and also account for the majority of the company’s recent production growth. Production from OML126 commenced in March 2005 and averaged 42,330 bbl/d in 2008. OML137 is an exploration and appraisal property. To date there has been no production from, and there are no production facilities on, OML137.

Description

•  Cover a combined area of approximately 387,800 acres (1,570 km2), 90 km offshore south of Port Harcourt
• The southern half of OML126 has been completely surveyed by 3D seismic and contains two producing oil fields (Okwori and Nda), four undeveloped oil discoveries and three identified exploration prospects
• OML137 was surveyed by 3D seismic in early 2006 and contains the Ofrima North oil discovery and several potentially commercial natural gas discoveries (Shokoloko, Toriye, Odum, Asanga and Ofrima), four identified oil prospects (Ofrima North, Atuma, Udele and Asa) and a number of shallow and deep leads

OML126 and OML137 are two contiguous blocks located 90 km offshore, south of Port Harcourt, in water depths ranging between 50 m and 210 m. Combined, they represent Addax Petroleum’s largest Nigerian properties as measured by area and also account for the majority of the company’s recent production growth. Production from OML126 commenced in March 2005 and averaged 42,330 bbl/d in 2008. OML137 is an exploration and appraisal property. To date there has been no production from, and there are no production facilities on, OML137.

Description

•  Cover a combined area of approximately 387,800 acres (1,570 km2), 90 km offshore south of Port Harcourt
• The southern half of OML126 has been completely surveyed by 3D seismic and contains two producing oil fields (Okwori and Nda), four undeveloped oil discoveries and three identified exploration prospects
• OML137 was surveyed by 3D seismic in early 2006 and contains the Ofrima North oil discovery and several potentially commercial natural gas discoveries (Shokoloko, Toriye, Odum, Asanga and Ofrima), four identified oil prospects (Ofrima North, Atuma, Udele and Asa) and a number of shallow and deep leads

Addax Petroleum acquired a 72.5% interest in, and operatorship of, OPL291 in October 2006 from Starcrest Nigeria Energy Limited, who retained the remaining 27.5% interest.  OPL291 is located approximately 130 km off the Nigerian coast in water depths ranging from approximately 1,000 to 2,300 m.  The highly prospective nature of the property is underlined by its proximity to the nearby world-class Agbami oil field in an adjacent block, which is currently under development by Chevron. OPL291 represents the mandatory relinquishment area following conversion of OPL216 to OML127 prior to development of the Agbami field in OML127. OPL291 was tendered by the Nigerian government under the 2006 mini bid round and was originally awarded to Starcrest.
Addax Petroleum acquired approximately 1,500 km2 of 3D seismic over the northern portion of OPL291 in order to further define the Merlin and Emrys prospects as well as to add to the licence area’s prospect inventory.

Description

• Covers an area of 318,100 acres (1,287 km2) in water depths ranging from 1,000 to 2,300 m
• OPL291 is immediately adjacent to OML127 (to the north) which contains the Agbami and Ikija fields, operated by Chevron and OPL242 (to the west) operated by Devon Energy Corporation
• One potentially significant prospects (Odoko) is identifiable from existing 2D and a 3D seismic data covering the majority of the licence area, as well as a number of leads from this data

Okwok is located approximately 45 km off the Nigeria coast, due south of Calabar, in water depths ranging between 35 m and 50 m. Okwok lies within ExxonMobil’s licence area OML67, immediately to the south of OML123, and covers an area of 22,500 acres (91 km2).

Field activities

• Field discovered in 1967 and partially appraised in 1968 by Mobil
• Two further wells were drilled in the field, the most recent in 1993, however neither well was production tested
• Two 3D seismic surveys were acquired over the field (the most recent which was in 2004)
• Three wells and a sidetrack well drilled by Addax Petroleum in 2006. Two wells were flow tested; the first well test produced at a rate of 400 bbl/d of light 32° API oil; however, the true flow potential of the well was not reached because of sand control problems. The second well test produced at a rate of 1,220 bbl/d of medium 26° API oil. Both wells are currently suspended for potential tie-back to production.

In June 2008, Addax Petroleum Corporation was awarded a 40% interest in OPL227, offshore Nigeria. Addax Petroleum’s co-participants in the OPL227 licence area are Express Petroleum & Gas Company Ltd (“Express”), Petroleum Prospects International Ltd (“PPI”) and Niger Delta Petroleum Resources (“NDPR”), which are all indigenous Nigerian oil companies. The OPL227 licence area is located in the shallow water offshore of the western Niger Delta Basin.

Description

• Covers approximately 340 km2 (84,100 acres) and is adjacent to and to the north-east of the Shell-operated OML79 licence area
• Four wells drilled between 1974 and 1988, all of which encountered hydrocarbons (in non-commercial quantities or shows)
• Minimal 2D seismic and no 3D seismic data acquired to date
• Express is the operator and Addax Petroleum will conduct technical operations in its capacity as technical advisor