Group news

Perenco is pleased to announce that Addax Petroleum Corporation will be participating in the recently spudded the Azango-1 exploration well in the Ogueyi license area, onshore Gabon.

The Ogueyi license area is an exploration block operated by Perenco with a gross area of 1,339 km2 (330,900 acres) on the eastern edge of the Port Gentil basin, onshore Gabon.  The Port Gentil basin is a well-established hydrocarbon province, producing mainly offshore from post salt formations of late Cretaceous age. Perenco has identified several prospects and leads on the block which is covered by suite of approximately 2,551 km of 2D seismic data.  The Azango-1 exploration well in the Ogueyi license area was spudded in early May 2009 and is expected to reach a total depth of 1,685 metres in June 2009.

Under the terms of the farm-in, Addax Petroleum has agreed to fund the Azango exploration well up to a maximum cost of $8 million.  In addition, Addax Petroleum has the option to make additional staged payments to Perenco based on future exploration results in order to earn a 50 per cent interest in the license area.  This farm-out is part of the Perenco risk management strategy which aims to broaden the drilling portfolio by finding like-minded partners on all 100% equity licenses, and to farm-in on a non-operated basis to other prospective exploration acreage.

The assignment of the 50 per cent interest to Addax Petroleum is subject to the approval of the Government of Gabon.