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Addax Petroleum Announces Oil And Gas Discoveries Offshore Nigeria

Source: www.gulfoilandgas.com 7/12/2007, Location: Africa

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Addax Petroleum Corporation announced the discovery of oil and gas in the Ofrima North structure and gas in the Udele West structure. Both structures are located in OML137, offshore Nigeria. The Ofrima-2 exploration well, drilled on the Ofrima North structure, discovered a 140 feet gross oil bearing interval at a depth of approximately 7,000 feet subsea. Based on static pressure data measurements, the Corporation anticipates the presence of a light oil of approximately 39 degrees API, similar to the crude oil produced from the Okwori and Nda fields in the Corporationís adjacent OML126. In addition, the well encountered three gas bearing intervals with individual gross gas columns of 29, 43 and 158 feet at shallower and deeper depths relative to the oil bearing interval. The Ofrima-2 well was spudded on April 6, 2007 and suspended on May 31, 2007.

A second exploration well, Udele-2, was drilled on the Udele West structure immediately following the suspension of the Ofrima North discovery well. The Udele-2 well discovered seven gas bearing intervals with individual gross gas columns of between 41 and 113 feet, 542 feet in aggregate, at depths ranging from 2,700 to 5,900 feet subsea. The Udele-2 well was suspended on July 2, 2007.

Both wells were drilled using Saipemís Scarabeo-3 semi-submersible drilling rig in water depths of approximately 75 metres at Ofrima North and 170 metres at Udele West. Currently, the Scarabeo-3 is undertaking a well workover on the Okwori field and thereafter will go offsite for approximately three months for routine inspection before returning to OML126 and OML137. In anticipation of the Scarabeo-3 inspection, the Ofrima-2 and Udele-2 wells were suspended. The Corporation intends to re-enter each well to carry out flow tests over selected intervals when the Scarabeo-3 returns.

The Ofrima-2 well is located approximately 80 kilometers west of the Corporationís Okwori field and approximately 15 kilometers from the Agip operated Agbara field The Udele-2 well is located approximately 32 kilometers southeast of the Ofrima-2 well. OML137 lies approximately 50 kilometers from the planned Brass LNG terminal.

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