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Addax Petroleum Agrees to Pay $18 million for Epaemeno Gabon Licence

04-16-2007

Oil and gas explorer Addax Petroleum Corp. has agreed to acquire a 50 per cent stake in the Epaemeno licence area in Gabon from BowLeven PLC for $18-million (U.S.) in exploration and development costs.

BowLeven will keep a 50 per cent interest in the project, but Addax will become operator of the area, which is immediately north of its Maghena and Awoun license areas in the West African nation.

The deal requires approval from the government of Gabon.

“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 said in a release.

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

The Epaemeno license area covers about 134,100 hectares.