Addax Plans To Acquire Pan-Ocean's Gabon Assets

Addax Petroleum Corp., Calgary, (Toronto: AXC) plans to acquire two subsidiaries of Pan-Ocean Energy Corp. Ltd., St. Helier, Jersey, U.K., (Toronto: POC.A; POC.B) that conduct all of Pan-Ocean's Gabonese operations for C$1.6 billion in cash. The subsidiaries include PanAfrican Energy Corp. (Mauritius) Ltd., which owns and operates Pan-Ocean Energy's E&P and marketing business in Gabon, West Africa, and Pan-Ocean Energy UK Ltd., which provides management and operational services to Pan-Ocean Energy. The Gabonese assets produce more than 10,000 barrels of oil per day and Addax expects production to reach approximately 18,000 barrels by year-end following completion of a pipeline in the second half of 2006. The company's proved reserves are 36 million barrels, proved-plus-possible reserves are 67.5 million barrels, and proved-plus-probable-plus-possible reserves are 121.3 million barrels. There is also onshore and offshore exploration potential on more than 716,000 net acres (approximately 55% offshore).