2009-09-25-2009-06-05-2009-08-08

Bought company, gaining 143,000 BO/d, 537 MMBOE 2P.

Chinese oil company Sinopec International Petroleum Exploration and Production Corp. has closed its acquisition of Switzerland-based Addax Petroleum Corp., (Toronto, London: AXC) for approximately C$8.2 billion (US$7.2 billion) in cash. The deal followed a bidding tussle between Sinopec and Korean National Oil Corp. where Sinopec won with the superior offer to Addax. Addax focuses on West Africa and the Middle East, with operations in Nigeria, Gabon, Cameroon, and the Kurdistan Region of Iraq. Production as of June 30 was 143,200 barrels of oil per day. Proved and probable reserves as of year-end 2008 were 537 million barrels of oil equivalent. Sinopec paid C$52.80 per Addax share, a 47% premium to the closing price on the June 5. Sinopec Group, the parent of Sinopec E&P, is China's largest producer and supplier of oil products and major petrochemical products. Sinopec said in a statement, "The acquisition of Addax Petroleum is a transformational transaction, which SIPC believes will further enable it to achieve its strategic objective to build a stronger presence and operations in West Africa and Iraq, accelerating its international growth strategy as well as optimizing its offshore oil and gas asset portfolio...In addition, Addax Petroleum's exploration potential, particularly in offshore deepwater exploration projects, will provide a strong platform for SIPC's ongoing growth and development." Sinopec plans to retain all Addax employees. Addax's board members will be replaced by nominees of Sinopec International, with Jean Claude Gandur remaining as a director. Gandur, Addax Petroleum president and chief executive, says, "We are pleased that Sinopec has recognized the highly attractive asset portfolio and exceptional team that we have assembled at Addax Petroleum. The efforts and accomplishments that Addax Petroleum has achieved thus far will be built on through increased investment in the business and acceleration of development and exploration plans. While Addax Petroleum will cease to be a publicly traded company, we look forward to continuing our business in the countries in which we operate for the benefit of all stakeholders." RBC Capital Markets was financial advisor to Addax and provided a fairness opinion. Fasken Martineau DuMoulin LLP and Osler, Hoskin & Harcourt LLP were legal counsel. Credit Suisse was financial advisor to Sinopec, and Vinson & Elkins LLP and Stikeman Elliott LLP were legal advisors.