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Shares in Iraqi Kurdistan oil becomes
available on the London Stock Exchange
24.5.2007 |
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Canadian oil Addax Petroleum announces start of
trading on the London Stock Exchange
May 24, 2007
London, UK, -- A share in Iraqi Kurdistan oil
becomes available today on the London Stock Exchange
with the listing of Addax Petroleum, a Canadian
explorer with a stake in a Kurdish oilfield in
Kurdistan region (northern Iraq) with more than one
billion barrels of reserves.
Addax is drilling Taq Taq, an oilfield northeast of
Baghdad, which was discovered in the 1970s. The
company hopes that results from the testing of a
third well, due on Tuesday, will confirm its
expectations of a world-class find.
Jean Claude Gandur, the chief executive of Addax,
reckons that Taq Taq could produce 200,000 barrels a
day within two years. |
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However, the development
of Taq Taq hinges on politics and an agreement over
a pipeline export route among the Kurdistan Regional
Government, the Iraqi Government in Baghdad and
Turkey.
Listed in Toronto, Addax is valued at about L2.9
billion. It has assets in Nigeria and Gabon and
produces 116,000 barrels a day. The company has
enough cash to pay its way, Mr Gandur said, and is
not seeking to raise funds in London.
Addax hopes to find investors in London who are more
in tune with its West African and Iraqi ambitions,
Mike Ebsary, the chief financial officer, said,
pointing to what he described as the company’s
valuation gap with equivalent independent oil
explorers.
Addax is also acquisitive. Mr Ebsary said: “If we
had a tradable currency, we could make
acquisitions.” He said that the targets would be
companies with a similar focus on Africa and the
Middle East.
Commenting today, Addax Petroleum's President and
Chief Executive Officer, Jean Claude Gandur, said:
"I am very pleased that Addax Petroleum now trades
on the main market in London. Our LSE listing will
provide investors with an additional venue for
trading the Corporation's shares and we believe that
it will increase the Addax Petroleum's visibility
and expand its investor base. Although
secondary-listed, Addax Petroleum's shares trade on
the SETSmm platform, which we believe will enhance
their liquidity in London.
Given the size the Corporation has achieved and the
growth still to come, we felt that a secondary
listing in London would be an excellent complement
to our primary listing in Toronto. We believe the
LSE offers strong financial markets and extensive
knowledge and support of internationally focused
exploration, development and production led
strategies."
The primary listing for common shares of Addax
Petroleum will continue to be the Toronto Stock
Exchange where they currently trade. The Corporation
is not issuing any new common shares in connection
with Admission and the Corporation will continue to
have 155,077,530 common shares of no par value
outstanding upon Admission, each of which carries
the right to one vote at every meeting of the
Corporation's common shareholders.
The Corporation does not hold any shares in
treasury. Accordingly, in conformity with rule 5.6.1
of the UK Financial Services Authority's Disclosure
and Transparency Rules (the "DTRs"), this figure
(155,077,530) may be used by shareholders (and
others with notification obligations under the DTRs)
as the denominator for the calculations by which
they will determine whether they are required to
notify their interest in, or a change to their
interest in, Addax Petroleum under the DTRs.
Citi is the financial advisor, Freshfields Bruckhaus
Deringer is the legal advisor and Pelham Public
Relations is the public relations advisor to the
Corporation in connection with Admission.
timesonline co.uk | News Wire Canada
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