Addax Petroleum Closes $402M Public Offering

Addax Petroleum Corporation, on August 16, 2006, closed the previously announced offering of 13 million subscription receipts by way of prospectus at a price of $27.25 per subscription receipt.
In connection with the offering, Addax Petroleum granted to the underwriters an over-allotment option. Pursuant to the exercise of the over-allotment option on August 30, 2006, Addax Petroleum issued an additional 1,750,000 subscription receipts at a price of $27.25 per subscription receipt for aggregate gross proceeds of $401,937,500.
Each subscription receipt represents the right to receive one Addax Petroleum common share, without payment of additional consideration upon completion of the acquisition of certain subsidiaries of Pan-Ocean Energy Corporation Limited, a transaction that was announced on July 20, 2006, which was expected to close on September 7, 2006. The net proceeds of the offering will be used to fund a portion of the Pan-Ocean Energy acquisition.
Addax Petroleum was advised by a team from both the Toronto and Calgary offices of Fasken Martineau DuMoulin LLP including John Turner, Richard Peters, John Sabetti, Jason Mudge, Krisztian Toth, Dan Rankin, Karoline Kralka, Sarah Gingrich, Ronald Nobrega and Mitchell Thaw. Gil Cornblum, Jonathan Van Horn and Shona Smith of the Toronto and Seattle offices of Dorsey & Whitney LLP were Addax Petroleum's US counsel. The underwriting syndicate was led by RBC Capital Markets, Merrill Lynch Canada Inc. and Scotia Capital Inc., and included CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., UBS Securities Canada Inc., BNP Paribas (Canada) Securities Inc., FirstEnergy Capital Corp., Canaccord Capital Corporation and Peters & Co. Limited.
The underwriters were represented in Canada by Fraser Milner Casgrain LLP. Leading the securities team were Dale Skinner and Toby Allan, with assistance from Bill Jenkins, John Reynolds, Keith Inman and Derek Kurrant (tax). Leading Fraser Milner Casgrain LLP's oil and gas team were Karim Mahmud and Sébastien Vilder, with assistance from Alexia Colson-Duparchny. The underwriters were represented in the United States and Europe by Herbert Smith LLP, with a team that included Jim Wickenden, Adam Wells, Mark Tudor, Jennifer Bell and Arit Ekpo.