Addax Petroleum Announces Update ToContinued Appraisal Program At Taq Taq
Second step-out appraisal well TT-07 flows at an aggregate rate of 37,560 barrels per day
Calgary, Alberta, September 6th, 2007 – Addax Petroleum Corporation (“Addax Petroleum” or the “Corporation”) (TSX/LSE:AXC) today announced flow test results for the TT-07 well, the fourth appraisal and development well recently drilled on the Taq Taq field by Taq Taq Operating Company, the joint venture company formed by Genel Enerji A.S. (“Genel”) and Addax Petroleum to carry out the petroleum operations in the Taq Taq license area.
Three reservoir intervals were tested separately and flowed at an aggregate rate of 37,560 bbl/d of light oil, measured gravity of 48 degrees API with low gas oil ratio. The intervals tested were a 232 meter bare foot completion interval in the Shiranish formation which flowed at a rate of 10,240 bbl/d, a 111 meter interval in the Kometan formation which flowed at a rate of 10,250 bbl/d and a 53 meter interval in the Qamchuqa formation which flowed at a rate of 17,070 bbl/d. Oil flow rates from the Shiranish, Kometan and Qamchuqa intervals were restricted by 128/64”, 76/64” and 128/64” choke sizes respectively. Evaluation of these flow test results is ongoing.
Commenting on the well results, Dr. Ashti Hawrami, the Minister of Natural Resources for the Kurdistan Regional Government said: “We are delighted by these results, as they demonstrate the high production potential of the Taq Taq field. We congratulate our Turkish partners (Genel Enerji) and Canadian partners (Addax Petroleum) on these excellent results. We also congratulate the people of the Kurdistan Region and all of Iraq. With this good news, Taq Taq will become the first major contributor in the Kurdistan Region to the increase of revenues for all Iraqi people. The KRG will continue its efforts in the development of the Region’s oil resources to meet our stated target of 1,000,000 barrels per day within the next five years”.
Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "The success of our appraisal program at Taq Taq continues to be very encouraging. The TT-07 well is significant because, in addition to being another successful step-out appraisal well, it tested at the highest aggregate flow rate of any Taq Taq well to date including having the highest single formation flow rate. We are integrating these additional results, together with the ongoing 3D seismic campaign, into a full development program for the Taq Taq field. We are also encouraged that recent constructive efforts of the Kurdistan Region and Iraq should could result in a legal framework that will enable the Corporation to commence implementing this full field development in 2008.”
TT-07 is a step-out well located approximately 2.9 kilometres southeast of the TT-04 well, which was located on the crest of the Taq Taq field. It is the second well which is attempting to define the length-wise areal extent of the Taq Taq structure approximately 6 kilometres in the opposite direction of the crest of the field from TT-06. The TT-07 well was spudded in late April and completed drilling in early July at a total depth of 2,187 metres. Testing of TT-07 commenced in mid August, 2007.
Interpretation of data acquired from TT-07, including wireline and 36 metres of core, confirmed the presence of a significant and extensive fracture system as observed in the TT-04, TT-05 and TT-06 wells in the tested formations. The Shiranish interval in the TT-07 well was acid stimulated.
The TT-07 well is the fourth of a six well drilling and seismic appraisal program by Genel and Addax Petroleum. The drilling of the fifth and sixth appraisal and development wells, TT-08 and TT-09, are now in progress. The TT-08 well was spudded in mid-July and is located approximately 1.7 kilometres east of the TT-04 well along the width-wise axis of the Taq Taq field. In addition to the ongoing drilling program, Genel and Addax Petroleum have commenced shooting 290 square kilometres of 3D seismic over the Taq Taq field and expect to complete the acquisition early in the fourth quarter of 2007. The results of the drilling and seismic appraisal program will be integrated into a full field development plan which Genel and Addax Petroleum expect to commence implementing in 2008. Genel and Addax Petroleum also are finalizing the acquisition of 175 kilometres of 2D seismic over the Kewa Chirmila prospect and surrounding area, which is in the same license area as the Taq Taq field.
The Taq Taq field is located in the Kurdistan Region of Iraq some 60 kilometres northeast of Kirkuk, 55 kilometres southwest of Erbil and 120 kilometres northwest of Sulaimaniyah.
About Addax Petroleum
Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and has increased its crude oil production from an average of 8,800 bbl/d for 1998 to an average of approximately 123,000 bbl/d for the second quarter of 2007. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.
Legal Notice – Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as “anticipate'', “believe'', “intend”, “expect”, “plan”, “estimate”, “budget'', “outlook'', “may”, “could”, “should”, “would” or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, and environmental matters. By its very nature, such forward-looking information requires Addax Petroleum to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors include, but are not limited to: imprecision of reserves and resources estimates, ultimate recovery of reserves, prices of oil and natural gas, general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil prices; refining and marketing margins; the ability to produce and transport crude oil and natural gas to markets; the effects of weather and climate conditions; the results of exploration and development drilling and related activities; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Addax Petroleum. More specifically, production may be affected by such factors as exploration success, start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling, and drilling progress. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Addax Petroleum with the Canadian provincial securities commissions.
Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Addax Petroleum does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
For additional information, please contact:
Mr. Patrick Spollen
Investor Relations
Tel.: +41 (0) 22 702 95 47
patrick.spollen@addaxpetroleum.com
Mr. Craig Kelly
Investor Relations
Tel.: +41 (0) 22 702 95 68
craig.kelly@addaxpetroleum.com
Ms. Marie-Gabrielle Cajoly
Press Relations
Tel.: +41(0) 22 702 94 44
marie-gabrielle.cajoly@addaxpetroleum.com
Mr. Mac Penney
Press Relations
Tel.: +1 (416) 934 80 11
mac.penney@cossette.com
Mr. James Henderson
Press Relations
Tel.: +44 (0) 20 7743 6673
james.henderson@pelhampr.com
Mr. Alisdair Haythornthwaite
Press Relations
Tel.: +44 (0) 20 7743 6676
alisdair.haythornthwaite@pelhampr.com
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