Addax Petroleum commissions new onshore production and export system in Gabon

Addax Petroleum commissions new onshore production and export system in Gabon

Addax Petroleum Corporation announces that it has completed the commissioning of a new production and export system from its Maghena property onshore Gabon. This commissioning of the new system provides the capacity to alleviate the constraints which had been restricting the export capacity from the Corporation’s Tsiengui and Obangue fields to just over 5,000 barrels per day. The new system was commissioned on Sunday, November 26 and is currently flowing at a rate of approximately 8,000 barrels per day.

Commenting today, Addax Petroleum’s President and Chief Executive Officer, Jean Claude Gandur, said: “The commissioning of the new onshore production and export system in Gabon is an important step in the development of our onshore properties in the country. With the removal of current export constraints via the new system, we expect to reach our targeted 2006 exit rate of 18,000 barrels per day of production from our onshore and offshore properties in Gabon. The new production and export system will also assist us in continuing the rapid growth of Addax Petroleum’s total production to a targeted average of approximately 130,000 barrels per day from all of the Corporation’s properties in 2007.”

The new production and export system is comprised of a 30,000 barrel per day central production facility at the Tsiengui field, a 30-kilometre, 10-inch pipeline from Maghena to the Total Gabon operated Coucal facility and additional heating and pumping capacity at Coucal. The system then ties into the main northern export trunk line and the export terminal at Cap Lopez in Port Gentil, Gabon. The new production and export system has a current export capacity of 20,000 barrels per day and the Corporation expects to increase the capacity to 30,000 barrels per day in the first half of 2007 with the installation of additional heating and pumping facilities at Coucal.

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” 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 further information

Mr. Patrick Spollen, Investor Relations, Tel.: +41 (0) 22 702 95 47, Mr. Craig Kelly, Investor Relations, Tel.: +41 (0) 22 702 95 68, Mr. Mac Penney, Press Relations, Tel.: +1 (416) 934 80 11,

Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: +41 (0) 22 702 94 44,

Source: Addax Petroleum Corporation

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