CALGARY, Canada, March 13 /PRNewswire/ --

- 59 per cent increase in Funds Flow From Operations to $1,319 Million

- 98 per cent increase in Net Income to $482 Million

- 40 per cent increase in Production to 125.9 Mbbl/d

- 26 per cent increase in Proved Plus Probable Reserves to 446.7 MMbbl

Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC), today announced its results for the year ended December 31, 2007. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars. In addition, the Corporation is announcing an increase to its 2008 capital expenditure budget.

This announcement coincides with the filing with the Canadian and U.K. securities regulatory authorities of Addax Petroleum's Audited Consolidated Financial Statements for the year ended December 31, 2007 and related Management's Discussion and Analysis, as well as Addax Petroleum's Annual Information Form. Copies of these documents may be obtained via, and the Corporation's website,

A conference call will be held for analysts and investors today Thursday, March, 13 at 12:00 p.m. (noon) Eastern Time/4:00 p.m. London, U.K. Time. Full details can be found at the end of this announcement.

CEO's Comment

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "I am extremely pleased to report that Addax Petroleum's 2007 performance continues our track record for delivering results and demonstrates record achievements in all aspects of our business. During the year, Addax Petroleum advanced its operations in all regions with significant increases in every financial and operational metric, including continued strong production growth in our two core areas of Nigeria and Gabon. Addax Petroleum's successful 2007 appraisal campaign in the rapidly developing Kurdistan Region of Iraq was a major accomplishment for the company and is expected to translate into first commercial oil production in 2008. During 2007, Addax Petroleum also built substantially on our world-class exploration portfolio, particularly in the deepwater Gulf of Guinea. We look to accelerate future reserves growth through an aggressive exploration program in 2008 and the coming years. I would like to thank our employees, management, board of directors, business partners and shareholders for their support and contribution to Addax Petroleum's outstandingly successful 2007."

Selected Financial Highlights

- Petroleum sales before royalties in 2007 amounted to $3,412 million, an increase of 68 per cent over petroleum sales before royalties of $2,029 million in 2006. The increase in petroleum sales before royalties was primarily driven by a 40 per cent increase in average gross working interest oil production. An increase of 15 per cent in average crude oil sales price in 2007 to $72.94 per barrel (/bbl) as compared to $63.40/bbl realized in 2006 also contributed significantly to the year on year growth in petroleum sales before royalties.

- Funds Flow From Operations for 2007 increased 59 per cent to $1,319 million ($8.49 per basic share) compared to $829 million ($5.80 per basic share) in 2006.

- Net income for 2007 increased 98% to $482 million ($3.10 per basic share) compared to $243 million ($1.70 per basic share) in 2006.

- Capital expenditures excluding acquisition considerations, farm-in fees and license signature fees increased by 43 per cent to $1,147 million in 2007 from $802 million in 2006. Development capital expenditures totaled $881 million in 2007, an increase of 47 per cent over development capital expenditure of $600 million in 2006. Exploration and appraisal capital expenditures increased to $266 million in 2007, an increase of 32 per cent over exploration and appraisal capital expenditures of $202 million in 2006.

- Consideration for the acquisition of the petroleum properties, including license signature and farm-in fees, in 2007 amounted to $78 million as compared to $297 million in 2006, excluding consideration of $1,448 million to acquire the business of Pan-Ocean on September 7, 2006.

- During 2007, the Corporation issued $300 million principal amount of 3.75 per cent unsecured convertible bonds, due May 31, 2012, for net proceeds of $294 million.

- Bank debt increased in 2007 by $120 million to $950 million and is currently drawn under a 5-year, $1.6 billion facility.

The following table summarizes the selected financial highlights.

------------------------------------------------------------------------- Selected financial highlights Year ended/ as at December 31 $ million unless otherwise stated 2007 2006 Change ------------------------------------------------------------------------- Petroleum sales before royalties 3,412 2,029 68% Average crude oil sales price, $/bbl 72.94 63.40 15% Funds Flow From Operations 1,319 829 59% Net income 482 243 98% Weighted average common shares outstanding (basic, millions) 155 143 8% Funds Flow From Operations per share ($/basic share) 8.49 5.80 46% Earnings per share ($/basic share) 3.10 1.70 82% Weighted average common shares outstanding (diluted, millions) 156 143 9% Funds Flow From Operations per share ($/diluted share) 8.38 5.80 44% Earnings per share ($/diluted share) 3.09 1.70 82% Total assets 3,759 2,978 26% Long-term debt, excluding convertible bonds 950 830 14% Capital Expenditures - by Region Nigeria (excluding deepwater) & Cameroon 826 638 29% Gabon 216 66 227% Kurdistan Region of Iraq 83 58 43% Deepwater Nigeria & JDZ 16 13 23% Corporate 6 27 -78% subtotal 1,147 802 43% Acquisitions, farm-in and license signature fees (excl. Pan-Ocean) 78 297 -74% Total 1,225 1,099 11% Capital Expenditures - by Type Development 881 600 47% Exploration & appraisal 266 202 32% subtotal 1,147 802 43% Acquisitions, farm-in and license signature fees (excl. Pan-Ocean) 78 297 -74% Total 1,225 1,099 11% ------------------------------------------------------------------------- -------------------------------------------------------------------------

Selected New Business Highlights

- During 2007, Addax Petroleum concluded two strategic transactions which have (i) further consolidated a considerable exploration position in the Gulf of Guinea deep water play, and (ii) confirmed Addax Petroleum as a significant developer and producer in Gabon.

- New business highlights in 2007 include:

Gulf of Guinea Deep Water

- in September 2007, Addax Petroleum consolidated its strategic 2006 entry into the Gulf of Guinea deep water exploration play with the acquisition of a 40% interest in Block 1 of the JDZ, an offshore area operated under treaty between Nigeria and Sao Tome and Principe. The acquisition is subject to the approval of the Joint Development Authority. Addax Petroleum operates JDZ Block 4 and OPL 291 and holds non-operating interests in JDZ Blocks 2 and 3. At year end, Addax Petroleum holds a net acreage position of 430,500 acres in the Gulf of Guinea deep water.


- in April 2007, Addax Petroleum acquired a 50% operating interest in and became the operator of the Epaemeno license area. The Epaemeno license area covers approximately 331,100 acres (gross) and lies immediately north of Addax Petroleum's Maghena and Awoun license areas, onshore Gabon. At year end, Addax Petroleum holds a net acreage position of 1,442,800 acres onshore and offshore Gabon.

Selected Operational Highlights

- Average gross working interest oil production in 2007 was 125,940 barrels per day (bbl/d) an increase of approximately 40 per cent over the 2006 average production of 90,050 bbl/d. Average oil production for 2007 included 104,510 bbl/d from Nigeria and 21,430 bbl/d from Gabon.

- Total gross working interest proved plus probable reserves, as evaluated by Netherland, Sewell & Associates as at December 31, 2007 and in accordance with National Instrument 51-101, increased by approximately 26 per cent to 446.7 MMbbl from 353.7 MMbbl as at December 31, 2006. The Corporation did not make reserves acquisitions or disposals during the year and the 2007 reserve additions arose primarily from the Corporation's operational activity, including extensions and discoveries, and favourable economic factors.

- The Corporation's overall 2007 reserves replacement ratio was 302 per cent. The reserves replacement ratio is calculated by dividing the gross working interest proved plus probable reserve additions of 139.0 MMbbl (before deduction of 2007 production of 46.0 MMbbl) by the 2007 production.

- Development project highlights in 2007 include:


- conversion of Oil Prospecting License OPL225 to Oil Mining Lease OML137;

- drilled 18 new development wells offshore, 17 in OML123 and one in OML126, 17 of which were placed on production during the year;

- drilled four new development wells onshore in OML124, doubling the production from the license area; and

- ongoing surface facilities development at the Oron and Adanga fields on OML123, and subsurface facilities development at the Okwori and Nda fields on OML126.


- drilled 17 development wells on the Corporation's onshore and offshore license areas, of which 16 were placed on production during the year;

- ongoing surface facilities development at the onshore Maghena and offshore Etame license areas; and

- commenced the extension of the Corporation's onshore export system, including a new 38-kilometre, 12-inch pipeline which will allow for further increases in production by availing of spare capacity through the Shell operated Rabi station. The Corporation expects the expanded export system to be commissioned in the second half of 2008.

- Total gross working interest best estimate unrisked prospective oil resources were 2,246 MMbbl as at December 31, 2007 as compared to 2,199 MMbbl as at December 31, 2006. Risked prospective oil resources increased by approximately 10 per cent to 738 MMbbl as at December 31, 2007 from 670 MMbbl as at December 31, 2006. Of the year-end 2007 unrisked prospective oil resources, 1,204 MMbbl or 54 per cent relate to the Corporation's Deep Water Gulf of Guinea portfolio, 907 MMbbl or 40 per cent to onshore Nigeria and shallow water offshore Nigeria and Cameroon, and 136 MMbbl or 6 per cent to Gabon, predominantly offshore.

- Total gross working interest best estimate contingent gas resources increased by approximately 71 per cent to 2,415 Bcf as at December 31, 2007 from 1,412 Bcf as at December 31, 2006. Best estimate liquids associated with contingent gas resources increased by approximately 106 per cent to 77.2 MMbbl as at December 31, 2007 from 37.4 MMbbl as at December 31, 2006. The largest additions are in OML137 where 926 Bcf and 25.3 MMbbl were added arising from the Corporation's successful exploration efforts during 2007.

- Exploration and appraisal activity and highlights in 2007 include:

Gulf of Guinea Shallow Water (Nigeria and Cameroon)

- drilled two exploration wells in OML123, offshore Nigeria, which discovered and appraised the Antan prospect. Significant quantities of oil were discovered for which 17 MMbbl probable reserves were booked at year end 2007. A third exploration well was drilled in OML123 on the Ibeno-E prospect but it was found to be gas bearing;

- drilled two exploration wells in OML137, offshore Nigeria, which discovered the Ofrima North and Udele West fields. Following the results of Ofrima North exploration well, 17 MMbbl of probable oil reserves were also booked at year end 2007. The Ofrima North and Udele West exploration wells also confirmed the gas potential of the OML137 licence area and 926 Bcf of contingent gas resources were booked at 2007 year end;

- drilled one appraisal well in OML126 on the Nda West prospect but it was unsuccessful;

- drilled an additional three field extension appraisal wells on OML123, of which one encountered oil and two were unsuccessful; and

- commenced site preparation of the drilling location for the Corporation's first two exploration wells at Ngosso, offshore Cameroon, which are to be drilled in the first half of 2008. The first of these exploration wells was spudded in early March 2008 and targeting the Odiong prospect.

Gulf of Guinea Deep Water (Nigeria and JDZ)

- continued building an in-house sub-surface interpretation and drilling technical team following the establishment of the Corporation's Gulf of Guinea deep water position in 2006; and

- 3D seismic processing throughout the JDZ and selecting the prospect in Block 4 which the Corporation has budgeted to drill in the second half of 2008.


- 126 km(2) of 3D seismic data acquisition over the Corporation's Panthere NZE and Awoun license areas, onshore Gabon; and - successful appraisal drilling of the Autour field in the Panthere NZE license area, onshore Gabon.

Kurdistan Region of Iraq

- seismic acquisition program comprised of 292 km(2) of 3D seismic data over the Taq Taq field and 218 km of 2D seismic over the Kewa Chirmila prospect and surrounding area which the Corporation plans to drill in mid-2008; and

- drilled and tested the three appraisal and development wells on the Taq Taq field (TT-05, TT-06 and TT-07) and commenced drilling of two more appraisal and development wells (TT-08 and TT-09) which were tested in early 2008. The five wells have tested at aggregate flow rates ranging from 16,170 bbl/d to 37,560 bbl/d from three separate zones.

- Operating netbacks in 2007 increased 19 per cent to $53.70/bbl compared to $44.97/bbl in 2006. Unit operating expenses in 2007 increased to $6.70/bbl, an increase of 6 per cent over the 2006 level of $6.33/bbl.

The following table summarizes selected operational information.

------------------------------------------------------------------------- Selected operational results Year ended/ as at December 31 2007 2006 Change ------------------------------------------------------------------------- Annual average gross working interest oil production (Mbbl/d) Nigeria (offshore) 97.1 82.5 18% Nigeria (onshore) 7.4 3.8 95% Nigeria sub-total 104.5 86.3 21% Gabon (offshore) 6.4 1.6 300% Gabon (onshore) 15.0 2.1 614% Gabon sub-total 21.4 3.7 478% Total 125.9 90.0 40% Prices, expenses and netbacks ($/bbl) Average realized price 72.94 63.40 15% Operating expense 6.70 6.33 6% Operating netback 53.70 44.97 19% Gross working interest oil reserves (MMbbl) Proved 233.3 182.0 28% Proved plus Probable 446.7 353.7 26% Proved plus Probable plus Possible 580.3 480.4 21% Gross working interest best estimate prospective oil resources (MMbbl) Unrisked 2,246 2,199 2% Risked 738 670 10% Gross working interest best estimate contingent resources Gas (Bcf) 2,415 1,412 71% Associated gas liquids (MMbbl) 77.2 37.4 106% ------------------------------------------------------------------------- -------------------------------------------------------------------------


For information purposes, the Corporation declared and paid aggregate dividends in 2007 of CDN$0.20 per share. A dividend of CDN$0.10 per share was declared and will be paid in the first quarter of 2008. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends.

Recent Developments

In January 2008, the Corporation tested the TT-09 step-out appraisal and development well on the Taq Taq field in the Kurdistan Region of Iraq. The TT- 09 well tested at an aggregate oil rate of 16,170 bbl/d from two separate zones.

In February 2008, the Corporation signed an agreement with the Kurdistan Regional Government amending the production sharing contract it holds together with Genel Enerji in respect of the Taq Taq license area in the Kurdistan Region of Iraq. The purpose of the amendments was to bring the terms of the Taq Taq production sharing contract into conformity with recently enacted oil and gas legislation in the Kurdistan Region of Iraq.

In March 2008, the Corporation tested the TT-08 step-out appraisal and development well on the Taq Taq field in the Kurdistan Region of Iraq. The TT- 08 well tested at an aggregate oil rate of 35,750 bbl/d from two separate zones.

Also in March 2008, the Corporation announced the successful appraisal of and addition to the Kita Marine discovery. The 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.

Outlook & 2008 Capital Budget Increase

The Corporation's production outlook for 2008 is in line with guidance provided to date. Addax Petroleum expects annual average working interest gross oil production to be approximately 140,000 to 145,000 bbl/d from its Nigeria and Gabon operations.

In addition, in response to strong operational results and a robust oil price environment, Addax Petroleum is increasing its 2008 capital expenditures budget to $1,615 million from $1,509 million announced in November 2007. This increase is driven by a 23 per cent increase in the Corporation's exploration budget to $406 million which will fund an accelerated exploration program in the Corporation's core areas in offshore Gabon and offshore Nigeria and Cameroon. The accelerated exploration program will include the drilling of up to four additional exploration wells, bringing the total wells drilled in the Corporation's exploration portfolio to 20 wells in 2008, as well as a 307 km 2D seismic program onshore Gabon. Addax Petroleum has extended its contract for the jack-up drilling rig, the Hercules-156, which is currently drilling the first exploration well for the Corporation at Ngosso, to early 2009 to support its accelerated exploration program. The Corporation has also increased its development capital expenditure budget by three per cent which will fund the drilling of an additional two development wells in Nigeria.

The following table summarises the Corporation's current oil production guidance and increased 2008 capital expenditure budget:

------------------------------------------------------------------------- 2008 Outlook Highlights Mar 2008 Nov 2007 Change Budget Budget ------------------------------------------------------------------------- Oil Production Guidance, Mbbl/d Nigeria 106 to 111 106 to 111 n/a Gabon 31 to 36 31 to 36 n/a Total 140 to 145 140 to 145 n/a Capital Expenditure Budget - by Region, $ million Nigeria (excluding deepwater) & Cameroon 1,102 1,034 7% Gabon 345 307 12% Deepwater Nigeria & JDZ 90 90 0% Kurdistan Region of Iraq 74 74 0% Corporate 4 4 0% Total 1,615 1,509 7% Capital Expenditure Budget - by Type, $ million Development 1,209 1,179 3% Exploration & appraisal 406 330 23% Total 1,615 1,509 7% ------------------------------------------------------------------------- -------------------------------------------------------------------------

Analyst Conference Call

Financial analysts are invited to participate in a conference call today Thursday, March, 13 at 12:00 p.m. (noon) Eastern Time / 4:00 p.m. London, U.K. time with Mr. Jean Claude Gandur, President and Chief Executive Officer, Mr. Michael Ebsary, Chief Financial Officer and Mr. James Pearce, Chief Operating Officer. The media and shareholders may participate on a listen only basis. To participate in the conference call, please dial one of the following:

Toronto: 416-644-3419

Toll-free (Canada and the US): 1-800-731-5774

Toll-free (UK): 00-800-2288-3501

Toll-free (Switzerland): 00-800-2288-3501

A replay of the call will be available at +1-416-640-1917 or +1-877- 289-8525, passcode 21264945 followed by the number sign until Saturday, March 29, 2008.

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; fluctuations 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.

Non-GAAP Measures

Addax Petroleum defines "Funds Flow From Operations" or "FFFO" as net cash from operating activities before changes in non-cash working capital. Management believes that in addition to net income, FFFO is a useful measure as it demonstrates Addax Petroleum's ability to generate the cash necessary to repay debt or fund future growth through capital investment. Addax Petroleum also assesses its performance utilizing Operating Netbacks which it defines as the per barrel pre-tax profit margin associated with the production and sale of crude oil and is calculated as the average realized sales price less royalties and operating expenses, on a per barrel basis. FFFO and Operating Netback are not recognized measures under Canadian GAAP. Readers are cautioned that these measures should not be construed as an alternative to net income or cash flow from operating activities determined in accordance with Canadian GAAP or as an indication of Addax Petroleum's performance. Addax Petroleum's method of calculating this measure may differ from other companies and accordingly, it may not be comparable to measures used by other companies.

For further information: Mr. Michael Ebsary Chief Financial Officer Tel.: +41(0)22-702-94-03 Ms. Marie-Gabrielle Cajoly Press Relations Tel.: +41(0)22-702-94-44 Mr. Patrick Spollen Investor Relations Tel.: +41(0)22-702-95-47 Mr. Craig Kelly Investor Relations Tel.: +41(0)22-702-95-68 Mr. Nick Cowling Press Relations Tel.: +1-416-934-8011 Mr. James Henderson Press Relations Tel.: +44(0)20-7743-6673 Mr. Alisdair Haythornthwaite Press Relations Tel.: +44(0)20-7743-6676,

For further information: Mr. Michael Ebsary, Chief Financial Officer, Tel.: +41(0)22-702-94-03,; Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: +41(0)22-702-94-44,; Mr. Patrick Spollen, Investor Relations, Tel.: +41(0)22-702-95-47,; Mr. Craig Kelly, Investor Relations, Tel.: +41(0)22-702-95-68,; Mr. Nick Cowling, Press Relations, Tel.: +1-416-934-8011,; Mr. James Henderson, Press Relations, Tel.: +44(0)20-7743-6673,; Mr. Alisdair Haythornthwaite, Press Relations, Tel.: +44(0)20-7743-6676,