The Sangaw North production sharing contract (PSC) covers a gross area of approximately 121,600 acres. Petroleum exploration activity to date includes field studies and the acquisition of 310km of 2D seismic which is expected to be completed in November 2008.
The Sangaw North license area contains a large surface anticline, a number of surface oil seeps and the operator is targeting to spud an exploration well in mid-2009.
The Sangaw North PSC is subject to an assignment to the Korean National Oil Company which, when completed, will reduce the Addax’s interest to 26.67%. Additionally, the Kurdistan regional government has the right to require that at a future date a government nominated entity is assigned 25%, which if exercised, will further reduce Addax’s interest to 20%.
