Thursday, March 13, 2008

Addax Petroleum Announces Successful Oil Appraisal Offshore Nigeria

Addax Petroleum Announces Successful Oil Appraisal Offshore Nigeria

CALGARY, Canada, March 11/PRNewswire-FirstCall/ --


- Successful Appraisal at OML123 Expands Kita Marine Area


Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) announced today the successful appraisal of and addition to the Kita Marine discovery. The recently completed KTM-6 well encountered an aggregate gross oil column of 173 feet over four zones. The Kita Marine discoveries lie in the northern part of the prolific OML123 block offshore Nigeria in an area which has not previously had production.


Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "I am very pleased to report an encouraging start to 2008 with these promising appraisal well results from OML123. The expansion the Kita Marine area opens up the very real possibility to initiate development and production for the first time in the northern part of OML123. Our track record of production and reserves growth in Nigeria and on OML123 in particular has been reliable and first rate. I believe that Kita Marine, along with the considerable remaining potential on OML123, will continue to underpin our strong and consistent operational performance."


The KTM-6 appraisal well was drilled two kilometres to the southwest of the successful KTM-2ST1 exploration well. Both wells penetrated separate but adjacent fault blocks. The KTM-6 well encountered an aggregate gross oil column of 173 feet including individual gross oil columns of 94 feet and 52 feet at depths of between 5,350 and 6,300 feet subsea. Flow tests were not performed but pressure and fluid sample data indicate medium gravity oil to be present, consistent with the approximately 30 degrees API Antan blend produced from OML123. The KTM-2ST1 well was drilled in late 2005 and encountered an aggregate gross oil column of 100 feet over three main zones and flow tested at 1,000 bbl/day of 28 degrees API oil.


The Kita Marine area lies in a water depth of approximately 10 metres and is approximately 10 kilometres northeast of the North Oron / Oron West producing facility. OML123 is Addax Petroleum's largest license area, currently producing approximately 60,000 bbl/day.


About Addax Petroleum


Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and has increased its crude oil production from an average of 8,800 bbl/d for 1998 to an average of approximately 126,000 bbl/d for 2007. Further information about Addax Petroleum is available at http://www.addaxpetroleum.com or at http://www.sedar.com.


Legal Notice - Forward-Looking Statements


Certain statements in this press release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "may", "will", "should", "could", "would" or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, environmental matters and government approvals. By its very nature, such forward-looking information requires Addax Petroleum to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors include, but are not limited to: imprecision of reserves and resources estimates; ultimate recovery of reserves; prices of oil and natural gas; general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil prices; refining and marketing margins; the ability to produce and transport crude oil and natural gas to markets; the ability to market and sell natural gas under its production sharing contracts; the effects of weather and climate conditions; the results of exploration and development drilling and related activities; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Addax Petroleum. More specifically, production may be affected by such factors as exploration success, start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling, and drilling progress. Capital expenditures may be affected by cost pressures associated with new capital projects, including labour and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Addax Petroleum with the Canadian provincial securities commissions.


Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Addax Petroleum does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.


Source: Addax Petroleum Corporation

For further information: Mr. Patrick Spollen, Investor Relations, Tel.: +41(0)22-702-95-47, patrick.spollen@addaxpetroleum.com; Mr. Craig Kelly, Investor Relations, Tel.: +41(0)22-702-95-68, craig.Kelly@addaxpetroleum.com; Ms. Marie-Gabrielle, Cajoly Press Relations, Tel.: +41(0)22-702-94-44, marie-gabrielle.cajoly@addaxpetroleum.com; Mr. Nick Cowling, Press Relations, Tel.: +1-416-934-8011, nick.cowling@cossette.com; Mr. James Henderson, Press Relations, Tel.: +44(0)20-7743-6673, james.Henderson@pelhampr.com; Mr. Alisdair Haythornthwaite, Press Relations, Tel.:+44(0)20-7743-6676, alisdair.haythornthwaite@pelhampr.com

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