Capex Data
In response to strong operational results and a robust oil price environment, Addax Petroleum is increasing its 2008 capital expenditures budget to $1,615 million from $1,509 million announced in November 2007. This increase is driven by a 23 per cent increase in the Corporation’s exploration budget to $406 million which will fund an accelerated exploration program in the Corporation’s core areas in offshore Gabon and offshore Nigeria and Cameroon. The accelerated exploration program will include the drilling of up to four additional exploration wells, bringing the total wells drilled in the Corporation’s exploration portfolio to 20 wells in 2008, as well as a 307 km 2D seismic program onshore Gabon. Addax Petroleum has extended its contract for the jack-up drilling rig, the Hercules-156, which is currently drilling the first exploration well for the Corporation at Ngosso, to early 2009 to support its accelerated exploration program. The Corporation has also increased its development capital expenditure budget by three per cent which will fund the drilling of an additional two development wells in Nigeria.
Future Plans
Production
Working interest gross oil production in 2008 is expected to average between 140 and 145 Mbbl/d, an increase of approximately 10 to 14 per cent over 2007.
Oil production from Nigeria is expected to show modest growth averaging between 106 and 111 Mbbl/d. The expected production from Nigeria includes further increases from OML123 plus flat production from OML124, partially offset by decline from OML126 which was originally anticipated in 2007 but has not been observed.
Oil production from Gabon is expected to average between 31 and 36 Mbbl/d. The expected production from Gabon consists of continued growth from the Corporation's onshore license areas while maintaining production levels from the offshore license area. Addax Petroleum expects that oil production from onshore Gabon will continue to be partially constrained by a third party operator through most of 2008, although the Corporation has commenced the extension of its export system which, once commissioned, will allow for further production increases by availing of spare capacity through the Shell-operated Rabi station.
Production guidance for 2008 does not include any oil production from the Kurdistan Region of Iraq, although the Corporation, together with its partners Genel Enerji and the Kurdistan Regional Government, is planning for the installation of an early production system for the Taq Taq field. The early production system is expected to commence as early as the second half of 2008 and would include oil production of approximately 10 Mbbl/d from Taq Taq (approximately 4 Mbbl/d working interest to Addax Petroleum).