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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Addax Petroleum | AXC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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| 0.00 | 0.00% | 3,005.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 3,005.00 | 3,005.00 |
| Top Posts |
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Posted at 04/3/2009 21:34 by leeson31 Addax Petroleum Corporation 04 March 2009 ? Addax Petroleum announces RECORD results FOR 2008 * 41 per cent increase in Funds Flow From Operations to $1,850 million * 63 per cent increase in Net Income to $784 million * 8 per cent increase in Production to 136.5 Mbbl/d * 20 per cent increase in Proved plus Probable Reserves to 536.7 MMbbl Calgary, March 4, 2009 - /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC), today announced its results for the year ended December 31, 2008.The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars. A conference call will be held for analysts and investors today Wednesday, March 4, 2009 at 11:00 a.m. Eastern Time / 4:00 p.m. London, U.K. Time. Full details can be found at the end of this announcement. CEO's Comment Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "I take great pleasure to report that Addax Petroleum's 2008 performance has resulted in another year of record operational performance, robust reserves growth and a significant increase in our prospective oil resources. Despite a challenging environment in the fourth quarter of 2008, Addax Petroleum achieved record production of 142.5 Mbbl/d in the quarter and ended the year with a significant discovery at the Njaba prospect. We advanced our early entrant position in the rapidly developing Kurdistan Region of Iraq through the completion of a 30 Mbbl/d facility which is expected to translate into first commercial oil production later this year. In recognition of the current challenging environment, we have undertaken an aggressive cost control program and are prudently managing our business to protect our balance sheet and maintain ongoing liquidity. Addax Petroleum has operated successfully in previous low oil price environments similar to the one we are currently experiencing today and is positioning itself to do so again. I would like to thank our employees, management, board of directors, business partners and shareholders for their support and contribution to Addax Petroleum's outstanding performance in 2008." Selected 2008 Financial Highlights The following table summarizes the selected financial highlights. +---------------+--- | Selected | Year ended / | | financial | as at December 31 | | highlights | | +---------------+--- | $ | 2008 | 2007 | Change | | million | | | | | unless | | | | | otherwise | | | | | stated | | | | +---------------+--- | Petroleum | 4,607 | 3,412 | 35% | | sales | 94.38 | 72.94 | 29% | | before | 48.7 | 46.8 | 4% | | royalties | | | | | Average | | | | | crude oil | | | | | sales | | | | | price, | | | | | $/bbl | | | | | Sales | | | | | volumes, | | | | | MMbbl | | | | +---------------+--- | | | | | +---------------+--- | Funds | 1,850 | 1,313 | 41% | | Flow | 784 | 482 | 63% | | From | | | | | Operations | | | | | Net Income | | | | +---------------+--- | | | | | +---------------+--- | Weighted | 156 | 155 | 1% | | average | 11.86 | 8.45 | 40% | | common | 5.03 | 3.10 | 62% | | shares | | | | | outstanding | | | | | (basic, | | | | | millions) | | | | | Funds Flow | | | | | From | | | | | Operations | | | | | per share | | | | | ($/basic | | | | | share) | | | | | Earnings | | | | | per share | | | | | ($/basic | | | | | share) | | | | +---------------+--- | | | | | +---------------+--- | Weighted | 163 | 156 | 4% | | average | 11.49 | 8.31 | 38% | | common | 4.95 | 3.09 | 60% | | shares | | | | | outstanding | | | | | (diluted, | | | | | millions) | | | | | Funds Flow | | | | | From | | | | | Operations | | | | | per share | | | | | ($/diluted | | | | | share) | | | | | Earnings | | | | | per share | | | | | ($/diluted | | | | | share) | | | | +---------------+--- | | | | | +---------------+--- | Total | 5,317 | 3,847 | 38% | | assets | 1,200 | 950 | 26% | | Long-term | | | | | debt, | | | | | excluding | | | | | convertible | | | | | bonds | | | | +---------------+--- | | | | | +---------------+--- | Capital | 1,160 | 773 | 50% | | Expenditures | 431 | 216 | 100% | | - by Region | 56 | 83 | -33% | | Nigeria | 47 | 16 | 194% | | (excluding | 82 | 84 | -2% | | deepwater) & | 1,776 | 1,172 | 52% | | Cameroon | | | | | Gabon | | | | | Kurdistan | | | | | Region of | | | | | Iraq | | | | | Deepwater | | | | | Nigeria & | | | | | JDZ | | | | | Corporate, | | | | | acquisitions, | | | | | farm-in and | | | | | license | | | | | signature | | | | | fees | | | | | Total | | | | +---------------+--- | | | | | +---------------+--- | Capital | 1,376 | 822 | 67% | | Expenditures | 318 | 266 | 20% | | - by Type | 1,694 | 1,088 | 56% | | Development | 82 | 84 | -2% | | Exploration | 1,776 | 1,172 | 52% | | & appraisal | | | | | subtotal | | | | | Corporate, | | | | | acquisitions, | | | | | farm-in and | | | | | license | | | | | signature | | | | | fees | | | | | Total | | | | +---------------+--- * Petroleum sales before royalties in 2008 amounted to $4,607 million, an increase of 35 per cent over petroleum sales before royalties of $3,412 million in 2007. The increase in petroleum sales before royalties was primarily driven by a 29 per cent increase in average crude oil sales price in 2008 to $94.38 per barrel (/bbl) as compared to $72.94/bbl realized in 2007 and an increase of 8 per cent in the average gross working interest oil production. The Corporation experienced a build up of crude oil inventory in the fourth quarter of approximately 540 Mbbl (equivalent to approximately 5.9 Mbbl/d) as production volumes exceeded sales volumes. This crude oil inventory is expected to decline in the first half of 2009. * Funds Flow From Operations for the fourth quarter of 2008 decreased 26 per cent to $318 million ($2.03 per basic share) compared to $428 million ($2.75 per basic share) in the fourth quarter of 2007. On an annual basis, Funds Flow From Operations for 2008 increased 41 per cent to $1,850 million ($11.86 per basic share) compared to $1,313 million ($8.45 per basic share) in 2007. * Net Income for the fourth quarter of 2008 decreased 98 per cent to $3 million ($0.02 per basic share) compared to $180 million ($1.16 per basic share) in the fourth quarter of 2007. On an annual basis, Net Income for 2008 increased 63 per cent to $784 million ($5.03 per basic share) compared to $482 million ($3.10 per basic share) in 2007. * Capital expenditures, excluding corporate and acquisition costs, totaled $521 million in the fourth quarter of 2008 and were comprised of $406 million for development and $115 million for exploration and appraisal activities. Capital expenditures, excluding corporate and acquisition costs, increased by 56 per cent to $1,694 million in 2008 from $1,088 million in 2007. Development capital expenditures totaled $1,376 million in 2008, an increase of 67 per cent over development capital expenditure of $822 million in 2007. Exploration and appraisal capital expenditures totaled $318 million in 2008, a 20 per cent increase over exploration and appraisal capital expenditures of $266 million in 2007. * Corporate and acquisition costs associated with new business activities were $82 million in 2008 as compared to $84 million in 2007. New business activities included the acquisition of four new exploration license areas for the Corporation's property portfolio, the increase of the Corporation's working interest in one exploration license area and the commencement of an integrated gas utilization project in Nigeria. * Bank debt increased in 2008 by $250 million to $1,200 million and is currently drawn under two facilities that consist of a $1.6 billion senior secured reducing revolving borrowing base facility (of which $1.3 billion can be drawn as debt) and a $500 million senior unsecured revolving facility that was entered into during the year. Selected Operational Highlights The following table summarizes selected operational information. +------------------- | Selected operational results | Year ended / | | | as at December 31 | +------------------- | | 2008 | 2007 | Change | +------------------- | Annual average gross working interest oil production (Mbbl/d) | +------------------- | Nigeria (offshore) | 100.7 | 97.1 | 4% | | Nigeria (onshore) | 7.3 | 7.4 | -1% | | Nigeria sub-total | 108.0 | 104.5 | 3% | +------------------- | | | | | +------------------- | Gabon (offshore) | 6.7 | 6.4 | 5% | | Gabon (onshore) | 21.8 | 15.0 | 45% | | Gabon sub-total | 28.5 | 21.4 | 33% | +------------------- | | | | | +------------------- | Total | 136.5 | 125.9 | 8% | +------------------- | | +------------------- | Prices, expenses and netbacks ($/bbl) | +------------------- | Average realized price | 94.38 | 72.94 | 29% | | Operating expense | 8.53 | 6.70 | 27% | | Operating netback | 68.42 | 53.70 | 27% | +------------------- | | +------------------- | Gross working interest oil reserves (MMbbl) | +------------------- | Proved | 214.2 | 233.3 | -8% | | Proved plus Probable | 536.7 | 446.7 | 20% | | Proved plus Probable plus | 738.4 | 580.3 | 27% | | Possible | | | | +------------------- | | +------------------- | Gross working interest best estimate prospective oil resources (MMbbl) | +------------------- | Unrisked | 2,772 | 2,246 | 23% | | Risked | 825 | 738 | 12% | +------------------- | | +------------------- | Gross working interest best estimate contingent gas resources | +------------------- | Gas (Bcf) | 2,820 | 2,415 | 17% | | Associated gas liquids (MMbbl) | 83.5 | 77.2 | 8% | +------------------- * Average gross working interest oil production in 2008 was 136,450 bbl/d, an increase of approximately 8 per cent over the 2007 average production of 125,940 bbl/d. Average oil production for 2008 included 107,980 bbl/d from Nigeria and 28,470 bbl/d from Gabon. * Total gross working interest proved plus probable reserves, as evaluated in accordance with National Instrument 51-101 by Netherland, Sewell & Associates ("NSAI") as at December 31, 2008, increased by approximately 20 per cent to 536.7 MMbbl from 446.7 MMbbl as at December 31, 2007. The Corporation did not make reserves acquisitions or disposals during the year and the 2008 reserve additions arose primarily from the Corporation's operational activity, including extensions and discoveries. Proved reserves decreased by 8 per cent in the same period as NSAI has not assigned proved reserves to wells without production test results. Addax Management elected not to test the Kita Marine appraisal wells in 2008, where 34.0 MMbbl of proved plus probable (2P) reserves were added during the year, given Addax Petroleum had previously tested the initial discovery in 2007 and has adequate data to submit a Field Development Plan to the Government. Similarly, 42.0 MMbbl of 2P reserves were added from the Njaba well but there were no proved (1P) reserves booked due to the fact that the well was drilled late in the year and had not been production tested within the year. Management expects a portion of these reserves to be reclassified as 1P reserves through additional drilling in 2009. * The Corporation's overall 2008 reserves replacement ratio was 281 per cent. The reserves replacement ratio is calculated by dividing the gross working interest 2P reserve additions of 140.0 MMbbl (before deduction of 2008 production of 49.9 MMbbl) by the 2008 production. * Development project highlights in 2008 include: Nigeria * drilled 12 successful new development wells offshore, 10 in OML123 and two in OML126, all of which were placed on production during the year; * drilled two successful new development wells onshore in OML124, all of which were placed on production during the year; * initial production from the Inagha field in OML123; and, * ongoing full field development at the Adanga North Horst field in OML123 and at the Okwori field in OML126. Gabon * drilled 23 development wells on the Corporation's onshore and offshore license areas, of which 21 were placed on production during the year; * ongoing surface facilities development at the onshore Maghena, Panthere NZE and Awoun license areas; * completed installation of the platform and pipeline from the offshore Ebouri field to the Etame Marin floating production storage and offloading vessel; and, * completed the extension of the Corporation's onshore export system, including a new 38-kilometre, 12-inch pipeline which will allow for further increases in production by availing of spare capacity through the Shell operated Rabi station. The Corporation expects the expanded export system to be commissioned in the second quarter of 2009. Kurdistan Region of Iraq * an early production system was installed and commissioned at Taq Taq allowing production capacity of up to 30 Mbbl/d and intermittent sales were commenced in the local market; and, * environmental studies and front end engineering and design associated with an export pipeline were completed and Addax Petroleum is currently investigating long-lead items required for the construction of the export pipeline. * Total gross working interest unrisked prospective oil resources increased by approximately 23 per cent to 2,772 MMbbl as at December 31, 2008 from 2,246 MMbbl as at December 31, 2007. Risked prospective oil resources increased by approximately 12 per cent to 825 MMbbl as at December 31, 2008 from 738 MMbbl as at December 31, 2007.Of the unrisked prospective oil resources as at December 31, 2008, 1,359 MMbbl or 49 per cent relate to the Corporation's Deep Water Gulf of Guinea portfolio, 1,030 MMbbl or 37 per cent to onshore Nigeria and shallow water offshore Nigeria and Cameroon, 248 MMbbl or 9 per cent to Gabon, predominantly offshore, and 136 MMbbl or 5 per cent to the Kurdistan Region of Iraq. * Total gross working interest best estimate contingent gas resources increased by approximately 17 per cent to 2,820 Bcf as at December 31, 2008 from 2,415 Bcf as at December 31, 2007. Best estimate liquids associated with contingent gas resources increased by approximately 8 per cent to 83.5 MMbbl as at December 31, 2008 from 77.2 MMbbl as at December 31, 2007. The largest additions are in OML137 where 411 Bcf and 8.7 MMbbl were added arising from the Corporation's successful appraisal efforts during 2008. * Average realized sales price for the fourth quarter of 2008 decreased 44 per cent to $49.28/bbl compared to $88.46/bbl in the fourth quarter of 2007. The decrease was primarily driven by a 38 per cent decrease in the average dated Brent benchmark price in the fourth quarter of 2008 as compared to the fourth quarter of 2007 and the timing of the crude oil liftings. * Royalties as a percentage of sales increased in the fourth quarter of 2008 compared to the first nine months of 2008 primarily due to activities in Gabon. Gabon offshore Royalty Oil as a percentage of revenues increased in the fourth quarter of 2008 as Royalty Oil is determined in the production month, rather than in the month sold. Inventory levels for Etame grew early in the quarter and were sold later in the quarter while the average sales price had fallen. * Operating netbacks in 2008 increased 27 per cent to $68.42/bbl compared to $53.70/bbl in 2007. Unit operating expenses in 2008 increased to $8.53/bbl, an increase of 27 per cent over the 2007 level of $6.70/bbl, due to cost inflation for the provision of services, an increase in the number of well workovers and security related costs in Nigeria, an increase in personnel related costs to support the growing operations in Gabon and local currency appreciation relative to the US dollar. Selected Exploration and Appraisal Highlights * Exploration and appraisal activity and highlights in 2008 include: Gulf of Guinea Shallow Water (Nigeria and Cameroon) * drilled a highly successful exploration well in OML124, onshore Nigeria, which discovered the Njaba prospect. Significant quantities of oil were discovered for which 42.0 MMbbl of probable reserves were booked at year end 2008. An appraisal well was also drilled in the northern area of the Ossu field in OML124 that expanded the areal extent of the field by proving the presence of oil north of a saddle separating the main field from an independent block; * drilled four successful appraisal wells in OML123, offshore Nigeria, that appraised the Adanga, Kita Marine and Oron West fields. Notably, in March 2008, the KTM-6 well encountered an aggregate gross oil column of 173 feet over four zones and resulted in 34.0 MMbbl of 2P oil reserves being booked at year end 2008. During the fourth quarter of 2008, Addax Petroleum drilled the Adanga North Graben prospect in OML123 and encountered gas; * drilled two successful appraisal wells in OML137, offshore Nigeria, on the Ofrima North discovery, one of which confirmed the western extension of the H42 oil reservoir and the other discovered 62 feet of oil and 92 feet of liquids-rich gas in deeper horizons; and, * drilled four exploration wells in the Ngosso and Iroko license areas offshore Cameroon. At Ngosso, the Odiong and Tali exploration prospects were drilled mid-2008, whereby the Tali sidetrack established a gross hydrocarbon column of 79 feet while the two Ngosso exploration wells were plugged and abandoned. The Iroko exploration well encountered hydrocarbons in the main objective interval. Gabon * drilled two successful appraisal wells at the Ebouri field in the Etame Marin license area, offshore Gabon, and commenced production in late January 2009; * completed 2D seismic data acquisition over the Corporation's Remboué license area and the northern part of the Epaemeno license area, both onshore Gabon; and, * drilled one exploration well on the Andok prospect in the fourth quarter of 2008 in the Maghena license area onshore Gabon where hydrocarbon shows were encountered in the main objective interval and through an up-dip sidetrack. Kurdistan Region of Iraq * drilled and tested two cretaceous appraisal wells on the Taq Taq field (TT-08 and TT-09) with aggregate flow rates ranging from 16.2 Mbbl/d to 35.8 Mbbl/d; * drilled and tested one Pila Spi appraisal well on the Taq Taq field (TT-11) with a flow rate of 470 bbl/d from a gross oil column of 52 metres. The oil tested from the Pila Spi is a much heavier oil than that from the cretaceous formations and the Corporation believes that significantly higher rates can be achieved with the installation of artificial lift; and, * drilled one cretaceous appraisal well (TT-10) that will be tested in the first quarter of 2009. Gulf of Guinea Deep Water (Nigeria and JDZ) * continued to conduct technical studies evaluating the exploration prospect drilling locations of the Corporation's deep water licenses that contain working interest unrisked prospective oil resources of 1,359 MMbbl (493 MMbbl risked). The Corporation plans to drill its first high impact exploration well in the Deep Water Gulf of Guinea in late 2009 at the Kina prospect in Block 4 of the Joint Development Zone.Chevron Corp. has notified the Nigeria/Sao Tome Joint Development Authority of its intent to move into the second exploration phase for Block 1. Selected New Business Highlights * 2008 continued an active new business program for Addax Petroleum with the addition of four new exploration license areas to the Corporation's property portfolio and the increase of the Corporation's working interest in a deepwater exploration license area. In addition, Addax Petroleum received Federal Government of Nigeria approval for an integrated gas utilization initiative which could lead to the development and monetization of the Corporation's considerable gas resources in Nigeria. * New business highlights in 2008 include: Gulf of Guinea Shallow Water (Nigeria and Cameroon) * the Corporation was awarded a 40 per cent interest in Oil Prospecting License ("OPL") 227, offshore Nigeria, subject to receipt of the formal deed of assignment.The OPL227 license area covers approximately 851 km2 (210,300 gross acres) and is located to the north-east of the Shell-operated OML79 license area which is reported to have commenced production in 2002 and to contain approximately 350 MMbbl of remaining recoverable oil. There have been four wells drilled in the OPL227 license area, all between 1974 and 1988, all of which encountered hydrocarbons in non-commercial quantities or shows. In addition, there has been minimal 2D seismic and no 3D seismic data acquired on OPL227 to date; * Addax Petroleum signed a Production Sharing Contract ("PSC") with the Republic of Cameroon, relating to the Iroko exploration license area. Under the PSC, Addax Petroleum acquired a 100 per cent interest in the Iroko license area and is the operator.The Iroko license area covers an area of 16 km2 (3,900 gross acres) and lies approximately 30 kilometres offshore Cameroon adjacent to the Corporation's OML123 license area in Nigeria; and, * Addax Petroleum announced, together with its partners Chrome Oil Services Limited and Korea Gas Corporation, that it has received the approval from the Federal Government of Nigeria for its proposed implementation of an integrated gas utilization project in Nigeria. The integrated gas utilization project is intended to include the exploration and development of gas fields in Nigeria, including Addax Petroleum's OML137, and to secure the gas reserves necessary to commercialize a new liquefied natural gas production facility of up to 10 million tonnes per annum. It is also expected to provide domestic power generation capacity along with the provision of feedstock for the development of petrochemical facilities. The project is still in the preliminary stages of development. Gabon * Addax Petroleum acquired an additional 18 per cent working interest in, and operatorship of, the Iris Marin license area where the Corporation now holds a 51.33 per cent working interest. The Iris Marin license area is an exploration permit of approximately 403 km² (99,600 gross acres) in the southern Gabon basin; and, * Addax Petroleum acquired a 68.75 per cent interest in, and operatorship of, the Gryphon Marin license area. The Gryphon Marin license area covers a gross area of 9,750 km2 (2,409,200 gross acres) and is immediately north of Addax Petroleum's Etame Marin license, offshore Gabon. The Corporation plans to commence exploration activities in Gryphon Marin with the spudding of two wells during the first half of 2009. Kurdistan Region of Iraq * Addax Petroleum acquired a 33.33 per cent interest in the Sangaw North PSC, effective September 2008. The Sangaw North license area contains a large surface anticline, a number of surface oil seeps and is located approximately 80 kilometres southeast of Addax Petroleum's Taq Taq license. During the fourth quarter of 2008, an assignment to the Korean National Oil Corporation was completed which reduced Addax Petroleum's interest to 26.67 per cent. The Corporation completed the acquisition of 2D seismic on the license area in fourth quarter of 2008 and plans to drill an exploration well within the exploration period. Joint Development Zone ("JDZ") * Addax Petroleum was awarded an additional 7.2 per cent participating interest in Block 4 of the JDZ as a result of an arbitration award by a panel of the London Court of International Arbitration. The award increased Addax Petroleum's interest in Block 4 to 45.5 per cent. Dividends The Corporation declared and paid aggregate dividends in 2008 of CDN$0.40 per share. A dividend of CDN$0.10 per share was declared on March 3, 2009, payable on April 2, 2009 to shareholders of record on March 19, 2009. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends. Recent Developments In January 2009, the Corporation announced a significant discovery from the Njaba 2 well in the eastern part of the OML124 license area in Nigeria. The discovery resulted in Addax Petroleum booking 42.0 MMbbl of probable reserves from this well as at December 31, 2008. In January 2009, the Corporation commenced production from the Ebouri field in the Etame Marin license area, offshore Gabon. In February 2009, the operator completed drilling the North Etame exploration well in the Corporation's Etame Marin license area offshore Gabon. The well encountered lower than anticipated hydrocarbons, was water bearing and is expected to be plugged and abandoned. 2009 Outlook & Capital Budget For 2009, Addax Petroleum has budgeted total capital expenditures of approximately $1.6 billion (excluding acquisitions), which are expected to result in total production averaging between 140 Mbbl/d to 145 Mbbl/d from its Nigeria and Gabon operations. This budget is consistent with the Corporation's philosophy of funding capital expenditures from internally generated cash flow and has been determined using the average Brent Crude price of $60/bbl. Should the prevailing Brent Crude price continue to be below $60/bbl for the balance of 2009, Addax Petroleum intends, and has the flexibility, to reduce its capital expenditures such that total capital expenditures continue to be funded by internally generated cash flow. An average Brent Crude price of $40/bbl would result in a reduction of capital expenditures to approximately $1 billion and the associated reduced drilling and facilities expenditures would result in Addax Petroleum's total production for 2009 averaging between 132 Mbbl/d and 137 Mbbl/d. Regulatory Filings This announcement coincides with the filing with the Canadian and U.K. securities regulatory authorities of Addax Petroleum's Audited Consolidated Financial Statements for the year ended December 31, 2008 and related Management's Discussion and Analysis, as well as Addax Petroleum's Annual Information Form including the Corporation's Statement of Reserves Data and Other Information, Report of the Independent Qualified Reserves Evaluator and Report of Management and Directors. Copies of these documents may be obtained via www.sedar.com, www.londonstockexcha www.addaxpetroleum.c These documents can be accessed at the following links Audited Consolidated Financial Statements for the year ended December 31, 2008 Management's Discussion & Analysis f Annual Information Form CEO & CFO Responsibility Statements Analyst Conference Call Financial analysts are invited to participate in a conference call today Wednesday, March, 4, 2009 at 11:00 a.m. Eastern Time / 4:00 p.m. London, U.K. time with Mr. Jean Claude Gandur, President and Chief Executive Officer, Mr. Michael Ebsary, Chief Financial Officer and Mr. James Pearce, Chief Operating Officer. The media and shareholders may participate on a listen only basis. To participate in the conference call, please dial one of the following: Toronto:416 644 3420 Toll-free (Canada and the US):1 800 731 5319 Toll-free (UK): 00 800 2288 3501 Toll-free (Switzerland):00 800 2288 3501 A replay of the call will be available at (416) 640 1917 or (877) 289 8525, passcode 21296229# until Wednesday, March 18, 2009. Capital Markets Day Addax Petroleum will host a Capital Markets Day presentation to financial analysts and investors on Monday, March 23, 2009 in London, UK and Tuesday, March 24, 2008 in Toronto, Canada. The Corporation's senior management team will discuss the Corporation's most recent operating results and expectations regarding future operations. A live webcast of the presentations will be made available and the Capital Markets Day presentation materials will be available on the Corporation's website at www.addaxpetroleum.c Interested attendees are encouraged to contact any of the individuals listed at the end of this announcement in order to register in advance. Reader Advisory Regarding Forward-Looking Information Certain statements contained in this news release, including statements related to future capital expenditures, business strategy and goals, future commodity prices, reserves and resources estimates, drilling plans, development plans and schedules, future seismic activity, production levels and sources of growth thereof, results of exploration activities and dates that areas may come on-stream, royalties payable, contingent liabilities and statements that contain words such as "may", "will", "would", "could", "should", "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "propose", "project", and statements relating to matters that are not historical fact constitute forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information is subject to known and unknown risks and uncertainties attendant with oil and gas operations, and other factors, which include, but are not limited to: imprecision of reserves and resources estimates; ultimate recovery of reserves; commodity prices; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and market margins; the ability to produce and transport crude oil and natural gas to markets; weather and climate conditions; results of exploration and development drilling and other related activities; fluctuation in interest rates and foreign currency exchange rates; 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; international political events; and expected rates of return. More specifically, production may be affected by 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. In this news release the Corporation has made assumptions with respect to the following: * prices for oil and natural gas; * oil and gas reserve and resource quantities and the discounted present value of future net cash flows from these reserves and the ultimate recoverability of reserves; * timing and amount of future production, forecasts of capital expenditures and the sources of financing thereof; * the amount, nature, timing and effects of capital expenditures; * plans for drilling wells and the timing and location thereof; * expectations regarding the negotiation and performance of contractual rights; * operating and other costs; * business strategies and plans of management; * anticipated benefits and enhanced shareholder value resulting from prospect development and acquisitions; and * treatment under the fiscal terms of Production Sharing Contracts and governmental regulatory regimes. The Corporation's actual results could differ materially from those anticipated in these forward-looking statements if the assumptions underlying them prove incorrect, or if one or more of the uncertainties or risks described above materializes. Risk factors are discussed in greater detail in filings made by Addax Petroleum with the Canadian provincial securities commissions. Readers are strongly cautioned that the above list of factors affecting forward-looking information is not exhaustive. Further, forward-looking statements are made as at the date they are given and, except as required by applicable law, Addax Petroleum does not intend, and does not assume any obligation, to update any forward-looking statements, whether as a result of new information or otherwise. The forward-looking statements contained in this new release are expressly qualified by this advisory. Non-GAAP Measures Addax Petroleum defines "Funds Flow From Operations" or "FFFO" as net cash from operating activities before changes in non-cash working capital. Management believes that in addition to net income, FFFO is a useful measure as it demonstrates Addax Petroleum's ability to generate the cash necessary to repay debt or fund future growth through capital investment. Addax Petroleum also assesses its performance utilizing Operating Netbacks which it defines as the per barrel pre-tax profit margin associated with the production and sale of crude oil and is calculated as the average realized sales price less royalties and operating expenses, on a per barrel basis. FFFO and Operating Netback are not recognized measures under Canadian GAAP. Readers are cautioned that these measures should not be construed as an alternative to net income or cash flow from operating activities determined in accordance with Canadian GAAP or as an indication of Addax Petroleum's performance. Addax Petroleum's method of calculating these measures may differ from other companies and accordingly, it may not be comparable to measures used by other companies. |
Posted at 08/5/2008 17:56 by a0469514 We went from 26th March to 17th April on here without a single post. During this time here was another very encouraging piece of news which again passed without comment.New Acreage Award RNS Number:5510R Addax Petroleum Corporation 03 April 2008 ADDAX PETROLEUM ANNOUNCES NEW ACREAGE AWARD OFFSHORE CAMEROON 100% interest in Iroko exploration license area in prolific Rio del Rey Basin Calgary, April 3, 2008 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) announces today that it has signed a Production Sharing Contract ("PSC") with the Republic of Cameroon, relating to the Iroko exploration license area. Under the PSC, Addax Petroleum acquires a 100 per cent interest in the Iroko license area and is the operator. The Societe Nationale des Hydrocarbures ("SNH"), the national oil company of Cameroon, holds a back-in right of 30% in case of a development. Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "I am delighted that Addax Petroleum has been awarded this promising exploration acreage by the Republic of Cameroon, situated in the prolific Rio del Rey Basin where the overwhelming majority of Cameroon's production is located. We are excited by our exploration potential offshore Cameroon which we believe can deliver near-term value for our shareholders and the country. We are presently drilling our first exploration wells on the Ngosso license area and later in 2008 we plan to drill on Iroko." In consideration for its interest in Iroko, Addax Petroleum is obligated to pay a signature bonus of US$3 million and undertake within the first three years a minimum work program valued at US$17.5 million, which includes the acquisition of 3D seismic data and the drilling of one well. The Iroko license area covers an area of 15.75 square kilometres (3,890 acres) and lies approximately 30 kilometres offshore Cameroon where the water depth is approximately 40 metres. Presently, there are no wells drilled on Iroko but there is oil production nearby from the Pecten (Shell)-operated Mokoko-Abana field complex. Maybe nobody reads this thread and I am talking to myself but this looks like a tremendous rate of very positive announcements to me which justify a lot more interest from the private investor. Xylos |
Posted at 07/5/2008 15:34 by leeson31 ALT today..07 May 2008 ADDAX PETROLEUM PRESENTS AT UPCOMING TRISTONE CAPITAL ENERGIE CONFERENCE Calgary, May 7, 2008 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX: AXC and LSE: AXC), announces that Mr. Jean Claude Gandur, President and Chief Executive Officer, will be presenting at the Tristone Capital Energie'08 Conference in Paris on Tuesday May 13th, 2008 at approximately 2:55 p.m. local time (1:55 p.m. London U.K. Time / 8:55 a.m. Eastern Time). Investors are invited to use the link below to watch the presentation and listen to the live audio cast. To enroll for the event, click on the Large Cap E+P box and then click "Enroll". Follow-up emails will indicate how to join the event. https://tristonecapi The presentation slides will be available prior to the presentation on Addax Petroleum's website at www.addaxpetroleum.c 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 126,000 bbl/d for 2007. Further information about Addax Petroleum is available at www.addaxpetroleum.c |
Posted at 23/1/2008 13:57 by leeson31 23 January 2008ADDAX PETROLEUM ANNOUNCES 2008 CAPITAL MARKETS DAY Calgary, January 23, 2008 /CNW/ - Addax Petroleum Corporation (TSX: AXC and LSE: AXC) ("Addax Petroleum" or the "Corporation") will host a management presentation to financial analysts and investors on Tuesday, January 29, 2008 in New York City. The Corporation's senior management team, including Mr. Jean Claude Gandur, President and Chief Executive Officer, Mr. James Pearce, Chief Operating Officer, and Mr. Michael Ebsary, Chief Financial Officer, will discuss the Corporation's most recent operating results and expectations regarding future operations. The Capital Markets Day presentation materials will be available on the Corporation's website at www.addaxpetroleum.c by webcast with the following details: Conference call / webcast details: Date: Tuesday, January 29, 2008 Time: 10:00 a.m. Eastern Time / 3:00 p.m. London, U.K. time The webcast will be available at the following URL: |
Posted at 12/10/2007 02:10 by a0469514 I cannot disagree with any of that Zengas. In fact they appear to justify a mkt cap significantly ahead of Tullow.It seems surprising that such a large and growing company appears to be largely unknown to UK investors. Maybe that is about to change. The share price is certainly heading in the right direction. Xylos |
Posted at 22/9/2007 15:00 by zengas Some comment by Natixis 21st September 2007.Addax hosted an analysts visit to Nigeria last week. Main points are - "Addax appears to be well placed to continue its progress in Nigeria". "There remains significant exploration potential on its key OML-123 licence where 29 prospects prospects have been identified with the potential to yield 180 million bls oil". "The Group will also be seeking to demonstrate that its deepwater acerage, including the OPL-291 block that is just a few miles from Chevrons 1 billion boe Agbami field, contains significant quantities of oil". "Elsewhere in the region we expect Addax will be particularly keen to grow its business in Gabon where its output should increase by around 1/3rd to 40k bopd by end next year. Furthermore, the company has identified numerous exploration targets on its three onshore blocks in the country". "All in all then, Addax appears to represent an interesting investment opportunity". "It looks to be very good value compared with other UK listed exploration and production companies of a similar size". "Investors are being asked to pay approximately $20 per barrel of working interest reserves and about $51,000 boe of daily w.i production. Both these figures compare very well with Cairn Energy (29/b and $200,000 per boe) and Tullow Oil ($44/b and $133,000 per boe)". It doesn't mention it's $1.6b acquistion fund nor does it mention it's intention to seek out other countries of interest such as Libya. It also doesn't mention Iraq and the giant potential of the Taq Taq field and other acerage under seismic. On the above basis alone (and no wonder they call it an interesting investment opportunity) and comparable to Tullow/Cairn we are around 40% cheaper - minimum. The November 12th figures for Q3 should be outstanding. Target price should be £25-£26 now solely on the valuation basis to Cairn/Tullow without any premium for it's continued growth. Recent director buying in Addax - 2/8/2007 at cdn$39.36/£19.20 and cdn$39.76 /£19.50 supports the view that the company is still very cheap. Incidentally the Daily Mail today says, investors should look at Petrel Resources the only UK listed company doing business in Iraq (They obviosuly haven't spotted Addax who listed in May and have already tested 112,000 bopd from the first 4 of the 6 well programme - 2 more wells yet to test and 45% net to Addax). None of this is factored into Addax share price at all. Dyor etc. |
Posted at 22/9/2007 15:00 by zengas Some comment by Natixis 21st September 2007.Addax hosted an analysts visit to Nigeria last week. Main points are - "Addax appears to be well placed to continue its progress in Nigeria". "There remains significant exploration potential on its key OML-123 licence where 29 prospects prospects have been identified with the potential to yield 180 million bls oil". "The Group will also be seeking to demonstrate that its deepwater acerage, including the OPL-291 block that is just a few miles from Chevrons 1 billion boe Agbami field, contains significant quantities of oil". "Elsewhere in the region we expect Addax will be particularly keen to grow its business in Gabon where its output should increase by around 1/3rd to 40k bopd by end next year. Furthermore, the company has identified numerous exploration targets on its three onshore blocks in the country". "All in all then, Addax appears to represent an interesting investment opportunity". "It looks to be very good value compared with other UK listed exploration and production companies of a similar size". "Investors are being asked to pay approximately $20 per barrel of working interest reserves and about $51,000 boe of daily w.i production. Both these figures compare very well with Cairn Energy (29/b and $200,000 per boe) and Tullow Oil ($44/b and $133,000 per boe)". It doesn't mention it's $1.6b acquistion fund nor does it mention it's intention to seek out other countries of interest such as Libya. It also doesn't mention Iraq and the giant potential of the Taq Taq field and other acerage under seismic. On the above basis alone (and no wonder they call it an interesting investment opportunity) and comparable to Tullow/Cairn we are around 40% cheaper - minimum. The November 12th figures for Q3 should be outstanding. Target price should be £25-£26 now solely on the valuation basis to Cairn/Tullow without any premium for it's continued growth. Recent director buying in Addax - 2/8/2007 at cdn$39.36/£19.20 and cdn$39.76 /£19.50 supports the view that the company is still very cheap. Incidentally the Daily Mail today says, investors should look at Petrel Resources the only UK listed company doing business in Iraq (They obviosuly haven't spotted Addax who listed in May and have already tested 112,000 bopd from the first 4 of the 6 well programme - 2 more wells yet to test and 45% net to Addax). None of this is factored into Addax share price at all. Dyor etc. |
Posted at 03/9/2007 16:31 by kiwi3 ok....thanks....did anyone see the article in investors chronicle last week...believe it was tipped as one of their buys of the week... |
Posted at 02/9/2007 19:42 by kiwi3 evidently tipped in investors chronicle last week....can anyone update us on the article....thanks in advance |
Posted at 29/8/2007 13:30 by leeson31 RNS Number:6647BAddax Petroleum Corporation 07 August 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA OR JAPAN Addax Petroleum announces SECOND QUARTER 2007 results * Funds Flow From Operations increased by 46 per cent and net income increased by 74 per cent * Working interest gross oil production increased by 54 per cent, to an average of 123,000 barrels per day * Continued exploration success offshore Nigeria and step-out appraisal success at Taq Taq Calgary, August 7, 2007 - /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) today announced its financial and operational results for the quarter ended June 30, 2007. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars. This announcement coincides with the filing with the Canadian and UK securities regulatory authorities of Addax Petroleum's Financial Statements for the quarter ended June 30, 2007 and related Management's Discussion and Analysis. Copies of these documents may be obtained via www.sedar.com, www.londonstockexcha and the Corporation's website, www.addaxpetroleum.c A conference call will be held for analysts and investors at 11:00 a.m. Eastern Time / 4:00 p.m. London, U.K. time today, Tuesday August, 7. Full details can be found at the end of this announcement. CEO's Comment Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "Once again we have delivered strong and solid quarterly results. I am delighted to report further production growth which, together with good cost discipline, enables us to continue delivering strong financial and operational performance. We believe that we have excellent reinvestment opportunities, demonstrated in the quarter by our exploration successes offshore Nigeria and step-out appraisal success at Taq Taq. We continue to build a platform for growth for Addax Petroleum. During the quarter, we increased our capital base through a well-received convertible bond issue and completed our secondary listing on the London Stock Exchange which I expect to be an important contributor to our objective of maximising shareholder value." Selected Financial Highlights * Petroleum sales before royalties in the second quarter of 2007 amounted to $753 million, an increase of 44 per cent over petroleum sales before royalties of $523 million in the second quarter of 2006. The growth in petroleum sales before royalties arose predominantly from increased petroleum sales volumes as the average crude oil sales price increased slightly by 1 per cent to $68.21 per barrel (/bbl) as compared to $67.85/bbl realized in the corresponding period in 2006. * Net income in the second quarter of 2007 was $101 million, an increase of 74 per cent over net income of $58 million in the second quarter of 2006. Net income per share increased by 59 per cent to $0.65 per share (basic) in the second quarter of 2007 compared to $0.41 per share (basic) in the corresponding period in 2006. * Funds Flow From Operations for the second quarter of 2007 increased 46 per cent to $287 million compared to $196 million for the corresponding period in 2006. Funds Flow From Operations per share increased by 32 per cent to $1.85 per share (basic) in the second quarter of 2007 compared to $1.40 per share (basic) in the corresponding quarter in 2006. * In May, the Corporation successfully issued $300 million of senior unsecured convertible bonds due in 2012. * Also in May, the Corporation was introduced to the Official List and to trading on the Main Market of the London Stock Exchange. The following tables summarize the selected second quarter and first half financial highlights. -------------------- Selected second quarter financial highlights Quarter ended June 30 $ million unless otherwise stated 2007 2006 Change -------------------- Petroleum sales before royalties 753 523 44% Average crude oil sales price, $/bbl 68.21 67.85 1% Net income 101 58 74% Earnings per share, $/share (basic) 0.65 0.41 59% Average shares outstanding (basic), million 155 140 11% -------------------- Funds Flow From Operations 287 196 46% Funds Flow From Operations per share (basic), $/share 1.85 1.40 32% -------------------- -------------------- Selected first half financial highlights Half Year ended June 30 $ million unless otherwise stated 2007 2006 Change -------------------- Petroleum sales before royalties 1,380 917 50% Average crude oil sales price, $/bbl 63.09 63.95 (1%) Net income 180 114 58% Earnings per share, $/share (basic) 1.16 0.85 36% Average shares outstanding (basic), million 155 134 16% -------------------- Funds Flow From Operations 550 370 49% Funds Flow From Operations per share (basic), $/share 3.55 2.76 29% -------------------- Selected Operational Highlights * Average working interest gross oil production in the second quarter of 2007 was 123.0 thousand barrels per day (Mbbl/d), an increase of 54 per cent over second quarter 2006 average oil production of 79.9 Mbbl/d. Nigeria production increased by 30 percent to 104.1 Mbbl/d compared to 79.9 Mbbl/d in the corresponding period in 2006. Gabon contributed 18.9 Mbbl/d in the second quarter of 2007 (no contribution in the second quarter of 2006). Total oil production during the quarter was 11.2 MMbbl, as compared to oil sales volumes of 11.0 MMbbl during the quarter. * Continued exploration success in OML137 offshore Nigeria, where oil and gas discoveries were made at Ofrima North and, at the start of the third quarter, Udele West, and step-out appraisal success at the Taq Taq field in the Kurdistan Region of Iraq. * Capital expenditures, excluding new business acquisition considerations, farm-in fees and license signature fees, increased by 52 per cent to $261 million in the second quarter of 2007, up from $172 million in the second quarter of 2006. Development capital expenditures totaled $174 million in the second quarter of 2007, an increase of 28 per cent over second quarter 2006 development capital expenditure of $136 million. Exploration and appraisal capital expenditures increased to $87 million in the second quarter of 2007 from $36 million in the second quarter of 2006. * Throughout the second quarter of 2007, the Corporation directly operated six drilling rigs: three offshore Nigeria, one onshore Nigeria and two onshore Gabon, and through its joint venture company, Taq Taq Operating Company, one further drilling rig in the Kurdistan Region of Iraq. * Development project highlights in the second quarter of 2007 include: Nigeria - four new development wells were drilled, all on OML123 and all four new wells were placed on production during the quarter; - surface facilities development was ongoing at the Oron and Adanga fields on OML123. Gabon - two development wells were drilled on the Corporation's onshore license areas; - a total of three new wells were placed on production, all onshore, comprising the two development wells drilled in the quarter and one previously drilled well; - surface facilities development was ongoing at the onshore Maghena and offshore Etame license areas. * Exploration and appraisal activity and highlights in the second quarter of 2007 include: Gulf of Guinea Shallow Water (Nigeria and Cameroon) - two exploration wells were drilled offshore Nigeria in the quarter, both on OML137 resulting in the two discoveries, Ofrima North and Udele West, the latter at the start of the third quarter; - as reported on July 12, 2007, the Ofrima-2 exploration well, drilled on the Ofrima North structure, discovered a 140 feet gross oil bearing interval which, based on static pressure data measurements, is anticipated to be a light oil of approximately 39 degrees API, and three gas bearing intervals with individual gross gas columns of 29, 43 and 158 feet. A second exploration well, Udele-2, discovered seven gas bearing intervals with individual gross gas columns of between 41 and 113 feet, 542 feet in aggregate. Both discovery wells were suspended and the Corporation intends to re-enter each well to carry out flow tests over selected intervals later in the year. - in Cameroon, the Corporation recently contracted for a drilling rig to start exploration drilling on the Ngosso license area later in 2007. Gabon - the Corporation has started a 3D development and appraisal seismic survey over the southern portion of the Maghena license area. The Corporation is working to extend seismic acquisition to cover the southern portion of the adjacent Awoun license area, operated by Shell Gabon and in which the Corporation has a 40 per cent working interest. The Corporation anticipates that the 3D survey, once acquired, processed and interpreted, will provide valuable information in the further development, appraisal and exploration of this area which contains the Obangue, Koula and Damier fields; - as reported on April 10, 2007, the Corporation acquired a 50 per cent interest in and operatorship of the Epaemeno exploration license area, which lies immediately north of the Corporation's Maghena and Awoun license areas onshore Gabon. The Epaemeno acquisition is subject to the consent of the government of Gabon. Gulf of Guinea Deep Water (Nigeria and JDZ) - technical studies are ongoing to evaluate exploration prospect drilling locations. Kurdistan Region of Iraq - as reported on June 4, 2007, a successful step-out appraisal well, TT-06, was drilled and tested at an aggregate rate of 18.9 Mbbl/d from three separate intervals. The TT-06 well was drilled approximately 3.6 kilometres north-northwest of the crestally-located TT-05 well; - during the second quarter, the TT-07 well was spudded approximately 2.2 kilometres southeast of the TT-05 well location. Presently, the TT-07 well is being prepared for flow testing, the results of which will be announced following the completion of testing; - recently, the TT-08 well was spudded approximately 1.1 kilometers north of the TT-05 well location with the objective of appraising the flank of the field; - a 2D seismic survey commenced over the Kewa Chermila area and was recently concluded, following which a 3D seismic survey was started over the Taq Taq field. * Operating netbacks in the second quarter of 2007 increased by 4 per cent to $51.17/bbl compared to $49.17/bbl in the second quarter of 2006. Unit operating expenses in the second quarter of 2007 decreased by 18 per cent to $5.75/bbl compared to the second quarter 2006 level of $6.99/bbl, reflecting unit cost improvements on the upgraded replacement FPSO on OML123 offshore Nigeria. The following tables summarize the selected second quarter and first half operational information. -------------------- Selected second quarter operational highlights Quarter ended June 30 2007 2006 Change -------------------- Annual average working interest gross oil production (Mbbl/d) Nigeria (offshore) 96.6 76.1 27% Nigeria (onshore) 7.5 3.8 97% Nigeria sub-total 104.1 79.9 30% Gabon (offshore) 6.4 -- -- Gabon (onshore) 12.5 -- -- Gabon sub-total 18.9 -- -- Total 123.0 79.9 54% Prices, expenses and netbacks ($/bbl) -------------------- Average realized price 68.21 67.85 1% Operating expense 5.75 6.99 (18%) Operating netback 51.17 49.17 4% -------------------- -------------------- Selected first half operational highlights Half year ended June 30 2007 2006 Change -------------------- Annual average working interest gross oil production (Mbbl/d) Nigeria (offshore) 94.4 76.6 23% Nigeria (onshore) 6.6 3.5 89% Nigeria sub-total 101.0 80.1 26% Gabon (offshore) 6.4 -- -- Gabon (onshore) 12.2 -- -- Gabon sub-total 18.6 -- -- Total 119.6 80.1 49% Prices, expenses and netbacks ($/bbl) -------------------- Average realized price 63.09 63.95 (1%) Operating expense 6.72 7.05 (5%) Operating netback 46.75 45.51 3% -------------------- Dividend The Board of Directors of the Corporation has declared a dividend of CDN$0.05 per share for the second quarter of 2007. The dividend is payable on September 13, 2007 to shareholders of record on August 30, 2007. A dividend of CDN$0.05 per share was declared and paid in the second quarter of 2007 relating to the first quarter of 2007. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends. AOG Shareholding in Addax Petroleum Corporation As reported on July 20 and July 31 last, the Corporation's largest shareholder, the Addax & Oryx Group Ltd. ("AOG"), has reduced its shareholding in Addax Petroleum to approximately 55.5 million shares, representing approximately 36 per cent of the Corporation's issued shares. The reduction in AOG's shareholding in the Corporation took place when some shareholders in AOG exchanged their shares in AOG for shares in the Corporation already held by AOG. The beneficial interests of the Corporation's executive management in Addax Petroleum remain unaltered as a result of the reduction of AOG's shareholding. Outlook The Corporation's outlook for 2007 is in line with guidance provided to date. Addax Petroleum expects average working interest gross oil production to approximate 127 to 133 Mbbl/d from its Nigeria and Gabon operations in 2007. Capital expenditure in 2007 is forecast to total $1,150 million, a decrease from $1,178 million, with $340 million allocated for exploration and $810 million for development expenditures. Forecast capital expenditures are allocated as follows: $750 million is forecast to be spent on Nigerian producing assets, $30 million to be spent on Nigerian non-producing assets, and $240 million to be spent on Gabon producing assets, $90 million on Taq Taq and $40 million on other assets, primarily on JDZ and Cameroon. Please see below links to the associated Interim Management Discussion & Analysis and Consolidated Financial Statements: Interim MD&A: Consolidated Financial Statements: 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", "will", "should", "could" 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 ability to market and sell natural gas under its production sharing contracts; 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. Non-GAAP Measures Addax Petroleum defines "Funds Flow From Operations" or "FFFO" as net cash from operating activities before changes in non-cash working capital. Management believes that in addition to net income, FFFO is a useful measure as it demonstrates Addax Petroleum's ability to generate the cash necessary to repay debt or fund future growth through capital investment. Addax Petroleum also assesses its performance utilizing Operating Netbacks which it defines as the per barrel profit margin associated with the production and sale of crude oil and is calculated as the funds flow from operations per barrel sold, prior to corporate charges. FFFO and Operating Netback are not recognized measures under Canadian GAAP. Readers are cautioned that these measures should not be construed as an alternative to net income determined in accordance with Canadian GAAP or as an indication of Addax Petroleum's performance. Addax Petroleum's method of calculating this measure may differ from other companies and accordingly, it may not be comparable to measures used by other companies |
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