Sinopec International Acquires Addax Petroleum at $7.2 Billion Buy

Calgary, Alberta, October 5th, 2009 – Sinopec International Petroleum Exploration and Production Corporation is pleased to announce that effective October 2, 2009, its indirect wholly-owned subsidiary, Mirror Lake Oil and Gas Company Limited, acquired all of the common shares of Addax Petroleum Corporation not taken up and paid for under the offer for all of the issued and outstanding common shares of Addax Petroleum dated July 9, 2009, as extended, made by Mirror Lake.

At $7.24 billion, Sinopec had just launched China's biggest ever oil acquisition and through its subsidiary, Mirror Lake now owns 100% of the issued and outstanding common shares of Addax Petroleum.

The common shares of Addax Petroleum have been delisted from the Toronto Stock Exchange and the London Stock Exchange effective October 5, 2009.

China's Sinopec northwest field eyes 5.6% more oil output

China's top refiner Sinopec Corp said that it planned to produce 5.6 per cent more of crude oil in its northwest oil field in 2010.

The northwest field will produce 6.97 million tonnes (139,400 barrels per day) of crude this year, compared with 6.6 million tonnes in 2009, according to a report published on Tuesday by China Petrochemical News, Sinopec's in-house paper.

The field will also aim to produce 1.3 billion cubic metres of natural gas in 2010, unchanged from the amount in 2009, as well as discover 358 million tonnes of oil equivalent in geological reserves, the report said.

Located in Xinjiang, an energy-rich region, the northwest oil field has been providing about one-sixth of Sinopec's national crude output.

Sinopec, also the country's second-largest crude producer after PetroChina, posted 1.47 per cent growth in crude production in 2009 at 301 million barrels from 2008 and a 2 percent rise in natural gas production at 299 billion cubic feet.

China produced 189.67 million tonnes of crude in 2009, a touch below levels in 2008. - Reuters