Today, Addax Petroleum Corp. announced its operating results for the three month period ended June 30, 2009.
Addax Petroleum’s President and Chief Executive Officer, Jean Claude Gandur, commented, “Record production performance and improved commodity prices have contributed to another quarter of strong operating cash flows and healthy netbacks. During the quarter, we saw a significant progression in the Kurdistan Region of Iraq through the commencement of crude oil exports from the Taq Taq licence area. In addition, we were advised that the deepwater Pathfinder drillship should arrive in August to enable Addax Petroleum to commence exploration in the Deepwater Gulf of Guinea.”
“The highlight of the quarter was the offer received from Sinopec International Petroleum Exploration and Production Corporation to acquire all of the outstanding common shares of Addax Petroleum by way of a negotiated cash take-over bid for C$52.80 per common share,” he continued. “Addax Petroleum’s Board of Directors considered a number of factors when reviewing the offer and believes that the offer is fair to shareholders and is in the best interests of Addax Petroleum. As a result, the Board of Directors unanimously recommended that shareholders accept the offer and tender their shares accordingly. We believe that this offer appropriately reflects the value we have been able to create and will be beneficial for all stakeholders of Addax Petroleum, including our public shareholders, employees and the countries and communities in which we operate.”
Currently, Addax Petroleum’s full year capital expenditure plan is approximately $1.3 billion, but the company will continue to review incremental capital expenditure investment opportunities if oil prices remain at or higher than the levels established in the latter part of the second quarter. Not including oil production from the Kurdistan Region of Iraq, Addax Petroleum anticipates annual average working interest gross oil production for 2009 to be between 132 and 137 Mbbl/d.
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