Petroleum Reserves and Other Resources
The links below summarize the petroleum reserves, other resources not currently classified as reserves, and the present value of future net revenue associated with Addax Petroleum's reserves evaluated in the Reserve Report prepared by Netherland Sewell & Associates, independent qualified reserves evaluators and oil and natural gas reservoir engineers, based on forecast and constant prices and costs assumptions presented in accordance with National Instrument 51-101 — Standards of Disclosure for Oil and Gas Activities. The tables summarize the data contained in the Reserve Report and, as a result, may contain slightly different numbers than the Reserve Report due to rounding. Future net revenue values, whether calculated without discount or using a discount rate, are estimated values and do not represent fair market value. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and reserves estimates of Addax Petroleum’s petroleum reserves provided herein are estimates only and there is no assurance that the estimated reserves will be recovered. Actual petroleum reserves may be greater than or less than the estimates provided herein. The estimates of reserves and future net revenue for individual properties included in this report may not reflect the same confidence level as estimates of revenue for all properties, due to the effects of aggregation.
Addax Petroleum’s petroleum reserves are comprised of light to medium oil reserves only in Nigeria, Gabon and the Kurdistan Region of Iraq. Addax Petroleum’s Nigerian Production Sharing Contracts do not include the right to produce and sell natural gas and therefore Addax Petroleum's reserve evaluations do not include any natural gas reserves. The Production Sharing Contracts in Nigeria and the Production Sharing Agreement in the Kurdistan Region of Iraq contain natural gas utilization clauses which permit Addax Petroleum to participate in commercial natural gas development if and when it occurs. Addax Petroleum’s Production Sharing Contracts in Gabon treat commercial natural gas in effectively the same manner as crude oil.
Addax Petroleum also undertakes exploration operations on its properties in Cameroon, the JDZ and OPL291 offshore Nigeria for which there are no reserves as at December 31, 2008.
The complete NI51-101F1 Statement of Reserves Data and Other Oil and Gas Information together with NI51-101F2 Report on Reserves Data by Qualified Reserves Evaluator or Auditor and NI51-101F3 Report of Management and Directors on Oil and Gas Disclosure can be found in Addax Petroleum’s Annual Information Form dated March 4, 2009, available on www.sedar.com or here.