afrol News, 10 April - An international oil and gas exploration and production company, Addax Petroleum Corporation, has agreed to acquire a 50 percent interest in the Epaemeno license in Gabon from BowLeven plc for US $18 million in exploration and development costs. The Epaemeno license area covers about 331,100 acres.

Addax, a company with strategic focus on West Africa and Middle East, will become the operator of the Epaemeno license area which is immediately north of the corporation's Maghena and Awoun license areas, onshore Gabon.

It is also one of the largest independent oil producers in West Africa that has increased its crude oil production from an average of 8,800 barrels per day in 1998 to approximately 108,000 per day in the fourth quarter of 2006.

Before the deal kicks off, it has to get the blessing of the Gabonese government.

“The addition of the Epaemeno license area to our exploration portfolio in Gabon is in line with our strategy of building out from our existing properties and operating infrastructure,” Addax President and CEO, Jean Claude Gandur, declared in a statement.

“We are delighted to partner with BowLeven and, as the intended operator of Epaemeno, believe that exploration activity can be integrated effectively with our ongoing development and exploration activities in Gabon,” he said.

Addax has also agreed to pay the first US $10 million of BowLeven’s share of the exploration costs and in the event a commercial development, the first US $ 8 million of the BowLeven’s share of development costs.

BowLeven will retain the other 50 percent stake.

The Epaemeno license area production sharing agreement was awarded in late 2004. Between 1976 and 1991, limited exploration activity was done by previous companies in Epaemeno license area. This includes drilling of four unsuccessful wells between and the acquisition of approximately 1,000 kilometres of 2D seismic data.

However, work is currently being undertaken to re-process and re-interpret the 2D seismic data ahead of further seismic acquisition or exploration drilling.

By staff writer

© afrol News

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