Wednesday, August 02, 2006

Addax Buys Overt's 5 Percent Interest In Block 4

Reaffirming the value of concessions in the Nigeria-Sao Tome and Principe Joint Development Zone, ERHC Energy's partner in Blocks 3 and 4 today revealed in a press release that it has acquired additional equity by picking up Overt Ventures' 5 percent share of Block 4 for $10 million in cash plus a signature bonus payable to the Joint Development Authority of $4.5-million.

The news initially moved investors to bump up the share price $0.01, but recent trading in very low volume has dropped it back to $0.41, off a cent on 619,571 shares traded by the close.

The volume was pumped up by just two trades, at $0.41.75 and $0.42, respectively, of 100,000 and 200,000 shares, shown as Buys on the ADVFN system.

Here is the Addax press release:

Addax Petroleum Increases Interest in Jdz Exploration Block

Calgary, Alberta, April 13th, 2006 – Addax Petroleum Corporation (“Addax Petroleum”) (TSX: AXC) announces that it has increased its participating interest in Block 4 of the Nigeria/Sao Tome and Principe Joint Development Zone (“JDZ”) from 33.3 per cent to 38.3 per cent by acquiring the 5 per cent participating interest held by Overt Ventures Ltd (“Overt”). The assignment of Overt’s interest to Addax Petroleum has been approved by the Nigeria/Sao Tome and Principe Joint Development Authority (“JDA”). Addax Petroleum is the operator of Block 4.

Commenting on the acquisition Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said, “We believe that the JDZ offers world-class exploration potential. This acquisition follows our strategy of investing in the JDZ as a core exploration area for Addax Petroleum.”

In return for obtaining Overt’s 5 per cent participating interest in Block 4, Addax Petroleum is obligated to pay:

* US$10 million to Overt as consideration for the interest, and
* US$5 million to the JDA comprised of a US$4.5 million signature bonus associated with the acquisition of the 5 per cent participating interest in Block 4 and an assignment administration fee of US$0.5 million.

Block 4 covers a gross area of 857 square kilometers (211,773 acres) and the water depth ranges from approximately 1,800 to 2,200 meters. Seismic data acquired over Block 4 is presently being analyzed to delineate potential drilling locations.

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