Addax Petroleum completes acquisition of Pan-Ocean Energy
  by: OilOnline
  Friday, September 08, 2006

Addax Petroleum Corporation has completed the previously announced acquisition of substantially all of the assets and operations of Pan-Ocean Energy Corporation Limited for cash consideration of CDN $1.605 billion.

Mr Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "I am pleased at how quickly and efficiently this Acquisition process was completed and look forward to building on Pan-Ocean's dynamic business in Gabon for the benefit of all our stakeholders. We are delighted to welcome the Pan-Ocean teams into our Addax Petroleum family and are excited at the additional value growth potential that the Acquisition provides for our shareholders. We expect the Acquisition to have an immediate positive impact as it will raise our anticipated 2006 exit production rate to close to 120,000 barrels per day and give us an average production rate of over 130,000 barrels per day in 2007. Moreover the Acquisition improves our reserve life index. We have made the quick and smooth integration of the acquired Pan-Ocean business with our current Addax Petroleum businesses a priority, which will lay the foundations for a new generation independent exploration and production company."

With the successful closing of the Acquisition, holders of Addax Petroleum's 14,750,000 subscription receipts (the "Subscription Receipts") will receive one common share in the share capital of Addax Petroleum ("Common Shares") per Subscription Receipt, without payment of any additional consideration effective today, September 7, 2006. As the Subscription Receipts trade in the 'book-entry' system and no individual certificates are issued, holders of Subscription Receipts are not required to take any action in order to receive the Common Shares to which they are entitled. Holders of Subscription Receipts that convert into Common Shares are entitled to receive a special payment equivalent to the amount of the initial quarterly dividend previously announced by Addax Petroleum of CDN$0.05 per share payable on September 14, 2006.

The proceeds from the offering of Subscription Receipts have been released to Addax Petroleum from escrow and were used along with other funds to pay the purchase price for the Acquisition. With the closing of the Acquisition, trading in the Subscription Receipts will be halted and the Subscription Receipts will remain halted until the close of business today, September 7, 2006, at which time they will be de-listed from the Toronto Stock Exchange.