Wednesday, October 07, 2009

Sinopec Buys 100% of Addax, But 0% of ERHC Energy

Well, we won't get any prizes for perspicacity, because we missed the news completely, but Addax, our partner in several blocks in the Joint Development Zone, has been acquired by our other partner in the JDZ, Sinopec.

Here is the press release:

Sinopec Acquires 100% of Addax Petroleum's SharesAddax Petroleum Corp.|Tuesday, October 06, 2009

Sinopec International Petroleum Exploration and Production Corporation is pleased to announce that effective October 2, 2009, its indirect wholly-owned subsidiary, Mirror Lake Oil and Gas Company Limited ("Mirror Lake"), acquired all of the common shares of Addax Petroleum Corporation ("Addax Petroleum") not taken up and paid for under the offer for all of the issued and outstanding common shares of Addax Petroleum dated July 9, 2009, as extended, made by Mirror Lake (the "Offer"). Mirror Lake acquired such additional common shares pursuant to a compulsory acquisition under section 206 of the Canada Business Corporations Act. Mirror Lake now owns 100% of the issued and outstanding common shares of Addax Petroleum.

The common shares of Addax Petroleum have been delisted from the Toronto Stock Exchange and the London Stock Exchange effective October 5, 2009.

Now the question arises, Why haven't they bought us? The answer may be that ERHC Energy, with Nigerian ownership that was a prerequisite for its original bids and is a U.S. based corporation, might be an impractical, impolitic or problematic purchase - or all of those - for Sinopec, which is a state-owned Chinese oil major.

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