Addax Petroleum Announces Record Third Quarter 2008 Results And 2009 Capital Budget

CALGARY, Canada, November 10 /PRNewswire/ --

- 61 per cent Increase in Funds Flow From Operations to $539 million - 103 per cent Increase in Net Income to $248 million - 2 per cent Increase in Production to 131.3 Mbbl/d - $1.6 Billion Capital Investment Budget for 2009

CALGARY, Canada, November 10 /PRNewswire/ --

Addax Petroleum Corporation (Addax Petroleum or the Corporation) (TSX:AXC and LSE:AXC), today announced its results for the quarter ended September 30, 2008. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars. In addition, the Corporation outlined its capital investment budget and production outlook for 2009.

This announcement coincides with the filing with the Canadian and U.K. securities regulatory authorities of Addax Petroleum's Unaudited Consolidated Financial Statements for the quarter ended September 30, 2008 and related Management's Discussion and Analysis. Copies of these documents may be obtained via http://www.sedar.com, http://www.londonstockexchange. com and the Corporation's website, http://www.addaxpetroleum.com.

A conference call and webcast will be held for analysts and investors today Monday, November 10, 2008 at 11.00 a.m. Eastern Time / 4.00 p.m. London, U.K. Time. Full details can be found at the end of this announcement.

CALGARY, Canada, November 10 /PRNewswire/ --

CEO's Comment

CALGARY, Canada, November 10 /PRNewswire/ --

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: I am pleased to report that robust operational performance in a record oil price environment has propelled Addax Petroleum to yet another quarter of record financial results. Our production levels continue to be solid and we expect a strong fourth quarter which will put us on track to achieve our full year guidance. During the third quarter, we also continued to expand Addax Petroleum's property portfolio with the addition of three new license interests. This new business activity is closely aligned with our dynamic exploration program which is ramping up significantly with seven exploration and appraisal wells in the fourth quarter. Looking into 2009 and given current volatility in commodity prices, we have set a prudent capital investment program in place which we expect to fund internally and which is designed to continue Addax Petroleum's profitable growth for all stakeholders.

CALGARY, Canada, November 10 /PRNewswire/ --

Selected Financial Highlights

CALGARY, Canada, November 10 /PRNewswire/ --

- Petroleum sales before royalties in the third quarter of 2008 amounted to $1,335 million, an increase of 44 per cent over petroleum sales before royalties of $925 million in the third quarter of 2007. This increase was primarily driven by a 48 per cent increase in the average crude oil sales price in the third quarter of 2008 to $110.32 per barrel (/bbl) as compared to $74.31/bbl realized in the third quarter of 2007, offset slightly by a 4 per cent decline in sales volumes between the same periods. The Corporation still retains a large oil inventory balance that is expected to decline further before the end of the year.

- Funds Flow From Operations for the third quarter of 2008 increased 61 per cent to $539 million ($3.45 per basic share) compared to $335 million ($2.15 per basic share) in the third quarter of 2007.

- Net income in the third quarter of 2008 increased 103 per cent to $248 million ($1.59 per basic share) compared to $122 million ($0.78 per basic share) in the corresponding period in 2007.

- Capital expenditures, excluding acquisition costs, increased by 72 per cent to $483 million in the third quarter of 2008 from $281 million in the third quarter of 2007. Development capital expenditures in the quarter totaled $427 million, an increase of 71 per cent over development capital expenditure of $250 million in the third quarter of 2007. Exploration and appraisal capital expenditures totaled $56 million in the quarter, an increase of 81 per cent over exploration and appraisal capital expenditures of $31 million in the third quarter of 2007.

- Corporate and acquisition costs associated with new business activities were $53 million in the third quarter of 2008 compared to $78 million in the third quarter of 2007. New business activities included the acquisition of two new exploration license areas for the Corporation's property portfolio, the increase of the Corporation's working interest in one exploration license area and the commencement of an integrated gas utilization project in Nigeria.

- At the end of the third quarter 2008, bank debt totaled $1,025 million and is consistent with the corresponding quarter in 2007. Bank debt is drawn under two facilities that consist of a $1.6 billion senior secured reducing revolving facility (due January 2012) and a $500 million senior unsecured revolving facility (due April 2010) which was underwritten during the third quarter of 2008.

The following table summarizes the selected financial highlights: ------------------------------------------------------------------------- Selected third quarter financial highlights Quarter ended $ million unless otherwise September 30 stated 2008 2007 Change ------------------------------------------------------------------------- Petroleum sales before royalties 1,335 925 44% Average realized sales price, $/bbl 110.32 74.31 48% Sales volumes, MMbbl 11.9 12.4 -4% Funds Flow From Operations 539 335 61% Net income 248 122 103% Weighted average common shares outstanding (basic, millions) 156 155 1% Funds Flow From Operations per share ($/basic share) 3.45 2.15 60% Earnings per share ($/basic share) 1.59 0.78 104% Weighted average common shares outstanding (diluted, millions) 163 162 1% Funds Flow From Operations per share ($/diluted share) 3.30 2.06 60% Earnings per share ($/diluted share) 1.55 0.78 99% Total assets 4,895 3,613 35% Long-term debt, excluding convertible bonds 1,025 1,025 0% Capital Expenditures - by Region Nigeria (excluding deepwater) Cameroon 333 199 67% Gabon 128 64 100% Kurdistan Region of Iraq 8 13 -38% Deepwater Nigeria JDZ 14 5 180% Corporate, acquisitions, farm-in and license signature fees 53 78 -32% Total 536 359 49% Capital Expenditures - by Type Development 427 250 71% Exploration appraisal 56 31 81% Subtotal 483 281 72% Corporate, acquisitions, farm-in and license signature fees 53 78 -32% Total 536 359 49% ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Selected first nine months financial highlights Nine months ended $ million unless otherwise September 30 stated 2008 2007 Change ------------------------------------------------------------------------- Petroleum sales before royalties 3,982 2,305 73% Average realized sales price, $/bbl 109.82 67.27 63% Sales volumes, MMbbl 36.1 34.3 5% Funds Flow From Operations 1,532 885 73% Net income 781 302 159% Weighted average common shares outstanding (basic, millions) 156 155 1% Funds Flow From Operations per share ($/basic share) 9.83 5.70 72% Earnings per share ($/basic share) 5.01 1.94 158% Weighted average common shares outstanding (diluted, millions) 163 158 3% Funds Flow From Operations per share ($/diluted share) 9.48 5.59 70% Earnings per share ($/diluted share) 4.90 1.94 153% Total assets 4,895 3,613 35% Long-term debt, excluding convertible bonds 1,025 1,025 0% Capital Expenditures - by Region Nigeria (excluding deepwater) Cameroon 829 541 53% Gabon 300 138 117% Kurdistan Region of Iraq 24 63 -62% Deepwater Nigeria JDZ 20 10 100% Corporate, acquisitions, farm-in and license signature fees 72 84 -14% Total 1,245 836 49% Capital Expenditures - by Type Development 970 563 72% Exploration appraisal 203 189 7% Subtotal 1,173 752 56% Corporate, acquisitions, farm-in and license signature fees 72 84 -14% Total 1,245 836 49% ------------------------------------------------------------------------- -------------------------------------------------------------------------

Selected New Business Highlights

- The third quarter of 2008 continued an active new business program for Addax Petroleum with the addition of two new exploration license areas to the Corporation's property portfolio and the increase of the Corporation's working interest in a deepwater exploration license area. In addition, Addax Petroleum received Federal Government of Nigeria approval for an integrated gas utilization initiative which could lead to the development and monetization of the Corporation's considerable gas resources in Nigeria.

- New business highlights for the third quarter of 2008 include the following:

Gabon

- Addax Petroleum acquired a 50 per cent interest in, and operatorship of, the Gryphon Marin license area. The Gryphon Marin license area covers a gross area of 2,409,200 acres (9,750 km(2)) and is immediately north of Addax Petroleum's Etame Marin license, offshore Gabon. As part of the acquisition, Addax Petroleum is inheriting a full suite of seismic data including approximately 3,900 km(2) of modern 3D seismic and 2,100 km of 2D seismic. Addax Petroleum's interest in Gryphon Marin is subject to two separate options held by a third party which could reduce Addax Petroleum's interest to 23.5 per cent for approximately 44 per cent of the gross license area. The Gryphon Marin license area is also subject to a 10 per cent back-in right held by the Government of Gabon for any development areas. The Gryphon Marin license area is in an exploration period ending in November 2009 and carries a commitment to drill two wells;

Kurdistan Region of Iraq

- Addax Petroleum acquired a 33.33 per cent interest in the Sangaw North Production Sharing Contract (PSC), effective September 2008. The Sangaw North license area is operated by Sterling Energy plc (Sterling) and is located approximately 80 kilometres southeast of Addax Petroleum's Taq Taq license. The Sangaw North PSC is subject to an assignment to the Korean National Oil Corporation which, when completed, will reduce Addax Petroleum's interest to 26.67 per cent. In addition, the Kurdistan Regional Government has the right to require that at a future date a government nominated entity be assigned 25 per cent which, if exercised, will further reduce Addax Petroleum's interest to 20 per cent. Under the terms of the acquisition, the consideration from Addax Petroleum comprises the reimbursement of Sterling's past costs as well as the funding of seismic acquisition and the drilling of an exploration well;

Joint Development Zone (JDZ)

- Addax Petroleum was awarded an additional 7.2 per cent participating interest in Block 4 of the JDZ. The award was made as a result of arbitration proceedings by a panel of the London Court of International Arbitration which confirmed that Addax Petroleum is entitled to the 7.2 per cent additional interest for no additional monetary consideration beyond the $18 million previously paid by Addax Petroleum. The award increases Addax Petroleum's interest in Block 4 to 45.5 per cent; and,

Gulf of Guinea Shallow Water (Nigeria and Cameroon)

- Addax Petroleum announced, together with its partners Chrome Oil Services Limited and Korea Gas Corporation, that it has received the approval from the Federal Government of Nigeria for its proposed implementation of an integrated gas utilization project in Nigeria. The integrated gas utilization project is intended to include the exploration and development of gas fields in Nigeria, including Addax Petroleum's OML137, and to secure the gas reserves necessary to commercialise a new liquefied natural gas production facility of up to 10 million tonnes per annum. It is also expected to provide domestic power generation capacity along with the provision of feedstock for the development of petrochemical facilities.

Selected Exploration and Appraisal Highlights

- During the third quarter of 2008, Addax Petroleum continued to progress the exploration program within its property portfolio through a seismic acquisition campaign onshore Gabon and Cameroon, appraisal work in the Kurdistan Region of Iraq and preparation work for exploration wells to be spudded in the fourth quarter.

- Exploration and appraisal highlights for the third quarter of 2008 include the following:

Gulf of Guinea Shallow Water (Nigeria and Cameroon)

- In the Iroko license area, Addax Petroleum has continued analysis on the core and fluid samples from the exploration well drilled in the second quarter of 2008. In addition, 3D seismic was acquired in the third quarter of 2008 and is currently being processed;

- Addax Petroleum is planning to enter the next exploration period in the Ngosso license, as the current period will expire in the first quarter of 2009. This next exploration period includes a commitment to drill one exploration well and to acquire additional 3D seismic data on the prospective northern part of the license area. The seismic acquisition campaign is planned to commence in the fourth quarter of 2008 and it is anticipated to be completed in the first quarter of 2009; and,

- The Corporation continued site preparation for the Okaka exploration well and the Adanga North Graben exploration well in the OML124 and OML123 license areas, respectively.

Gabon

- Addax Petroleum completed a 2D seismic acquisition campaign on the Maghena license area and commenced a 2D seismic acquisition on the Epaemeno license which is expected to be completed in the fourth quarter of 2008. In addition, ongoing seismic interpretation and processing continues on the Remboue and Maghena license areas; and,

- The Corporation continued site preparation for the Andok exploration well in the Maghena license area.

Kurdistan Region of Iraq

- Through the Taq Taq Operating Company (TTOPCO), a joint venture between Addax Petroleum and Genel Enerji A.S., Addax Petroleum imported a second, larger drilling rig (Kurdistan-1) and commenced the drilling of the TT-10 appraisal well in the third quarter of 2008;

- Since the end of the third quarter of 2008, the Corporation also announced the successful appraisal of the Eocene Pila Spi formation in the Taq Taq field with the TT-11 well. The TT-11 well was spudded in early September 2008 and reached a total depth of 1,000 metres in early October 2008 encountering a gross oil column of 52 metres with a flow test of 470 bbl/d; and,

- There has also been ongoing 3D seismic interpretation and extensive core analysis studies for the Taq Taq field as well as site preparation for the drilling of the Kewa Chirmila exploration well during the third quarter of 2008.

Gulf of Guinea Deep Water (Nigeria and JDZ)

- During the third quarter of 2008, Addax Petroleum continued to conduct technical studies evaluating the exploration prospect drilling locations of its deep water licenses.

Selected Operational Highlights

- Average gross working interest oil production in the third quarter of 2008 was 131,320 barrels per day (bbl/d) representing an increase of approximately 2 per cent over the 2007 average production of 128,160 bbl/d. Average oil production in the third quarter of 2008 included 103,630 bbl/d from Nigeria and 27,690 bbl/d from Gabon compared to a 2007 third quarter average production level of 104,510 bbl/d and 23,650 bbl/d, respectively.

- Development project highlights in the third quarter of 2008 include:

Nigeria

- drilled five successful development wells which included two oil production and two appraisal wells in OML123 and one oil production well in OML126;

- placed a total of two new wells on production in the quarter, representing one of the five development wells drilled in the quarter and one drilled in a previous quarter;

- performed three workovers in OML124;

- approximately 8,000 bbl/d was shut-in at Oron West South (OML123) due to facility constraints associated with contractor delays in the installation of new pipelines. Partial production from Oron West South commenced early in the fourth quarter of 2008; and

- continued preparation of the Kita Marine and Antan field development plans.

Gabon

- drilled six successful development wells onshore of which four were oil production wells in the Addax Petroleum operated Tsiengui field in the Maghena license area and two were oil production wells in the Tsiengui West field in the Awoun license area;

- placed a total of four new wells on production in the Tsiengui field in the quarter of which three were drilled in the quarter and one was drilled in the previous quarter;

- three wells were put on gas lift in conjunction with the start of injection into the gas cap for pressure support in the Tsengui field. While production from the Tsiengui field has been somewhat lower than expected, new wells brought on production are expected to offset the decline from existing producers;

- the third-party operator of the Awoun license continues with the development of the Koula field with production start-up expected towards mid 2009; and,

- continued ongoing surface facilities development at the onshore Addax Petroleum operated Tsiengui and Obangue fields, the onshore third party operated Koula field, the offshore third party operated Ebouri field and continued with the extension of the Corporation's onshore oil export pipeline system.

Kurdistan Region of Iraq

- an early production system has been installed and commissioned, and TTOPCO is targeting to commence commercial oil production attributable to Addax Petroleum's working interest in the fourth quarter of 2008; and,

- existing production facilities are being expanded in the fourth quarter of 2008 with a further capacity increase planned in 2009.

- Operating netbacks in the third quarter of 2008 increased 50 per cent to $82.43/bbl compared to $54.94/bbl in the third quarter of 2007. Unit operating expenses in the third quarter of 2008 increased to $8.12/bbl, an increase of 29 per cent over the 2007 level of $6.29/bbl, due to cost inflation pressures for the provision of services, an increase in the number of well workovers and security related costs in Nigeria, an increase in personnel related costs to support the growing operations in Gabon and local currency appreciation relative to the US dollar.

The following table summarizes selected operational information: ------------------------------------------------------------------------- Selected third quarter Quarter ended operational highlights September 30 2008 2007 Change ------------------------------------------------------------------------- Quarter average gross working interest oil production (Mbbl/d) Nigeria (offshore) 95.8 96.1 0% Nigeria (onshore) 7.8 8.4 -7% Nigeria sub-total 103.6 104.5 -1% Gabon (offshore) 6.5 6.3 3% Gabon (onshore) 21.2 17.4 22% Gabon sub-total 27.7 23.7 17% Total 131.3 128.2 2% Prices, expenses and netbacks ($/bbl) Average realized sales price 110.32 74.31 48% Operating expenses 8.12 6.29 29% Operating netback 82.43 54.94 50% ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Selected first nine months Nine months ended operational highlights September 30 2008 2007 Change ------------------------------------------------------------------------- Quarter average gross working interest oil production (Mbbl/d) Nigeria (offshore) 98.9 95.0 4% Nigeria (onshore) 7.4 7.2 3% Nigeria sub-total 106.3 102.2 4% Gabon (offshore) 6.8 6.3 8% Gabon (onshore) 21.3 14.0 52% Gabon sub-total 28.1 20.3 38% Total 134.4 122.5 10% Prices, expenses and netbacks ($/bbl) Average realized sales price 109.82 67.27 63% Operating expenses 8.58 6.58 30% Operating netback 82.00 49.81 65% ------------------------------------------------------------------------- -------------------------------------------------------------------------

CALGARY, Canada, November 10 /PRNewswire/ --

Dividend

CALGARY, Canada, November 10 /PRNewswire/ --

During the third quarter of 2008, the Corporation paid a dividend of CDN$0.10 per share. The Board of Directors of the Corporation declared a dividend of CDN$0.10 per share on November 7, 2008 which is payable on December 11, 2008 to shareholders of record on November 27, 2008. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends.

CALGARY, Canada, November 10 /PRNewswire/ --

Outlook

CALGARY, Canada, November 10 /PRNewswire/ --

The Corporation has completed its budget outlook for the remainder of 2008 and for 2009. Addax Petroleum's budgeting process is continually driven by the strategy of reinvesting free cash flow generated from producing operations and the approach is to adjust the capital program in light of prevailing oil prices in order to achieve this without recourse to additional financing. The Corporation believes that this philosophy of funding its capital expenditures with internally generated cash flow, augmented from time to time with the use of existing debt facilities, will retain balance sheet strength and the financial flexibility to expand the Corporation's operations and property portfolio. The Corporation seeks to reinvest internally generated funds on an economic basis, balanced between development and exploration activities.

CALGARY, Canada, November 10 /PRNewswire/ --

- Selected highlights for 2008 include:

Production Guidance

- working interest gross oil production from Nigeria and Gabon is expected to average approximately 136 to 140 Mbbl/d, in line with the previous guidance range. Average production for October 2008 was in excess of 140 Mbbl/d;

Capital Expenditure Estimate

- the Corporation's capital expenditure estimate for 2008 is $1,602 million, excluding new business acquisition considerations, farm- in fees and license signature fees, relative to its previously reported full year estimate of $1,615 million;

- estimated development capital expenditures amount to $1,294 million split 74 per cent to Nigeria and the remaining 26 per cent to Gabon. Development drilling is the largest item, accounting for $790 million or 61 per cent of the development estimate; and,

- estimated 2008 exploration and appraisal capital expenditures amount to $302 million, resulting in four discoveries to date in 2008 (44 per cent success rate) and the pursuit of extensive seismic programs to build the Corporation's resources base. Expenditures are split $145 million in Nigeria (excluding the deepwater license areas) and Cameroon, $51 million in the deepwater Gulf of Guinea and the JDZ, $50 million in Gabon and $56 million for the highly successful appraisal of Taq Taq.

Addax Petroleum's capital expenditure budget for 2009 totals $1,600 million. The Corporation expects to fund this capital budget from internally generated cash flow plus the receipt in early 2009 of certain expected year-end working capital items based on an estimated $60 per barrel Brent oil price together with the 2009 production guidance.

In particular, the Corporation's development budget for 2009 includes 54 development wells, comprised of 23 oil production wells in Nigeria (18 at OML123 and five at OML126, both offshore) and 31 in Gabon (five oil production and two gas/water injection wells at Maghena, 18 oil production and four gas/water injection wells at Panthere, both onshore, and two oil production wells at Etame, offshore). Addax Petroleum's drilling strategy is intended to strengthen and maintain production at plateau levels on the existing producing assets in Nigeria and allow for continued production growth in Gabon through the ongoing development of Addax Petroleum-operated onshore fields. The Corporation will reinvest the cash flow generated from this production base into an ambitious exploration and appraisal program to accelerate the Corporation's reserves and resources additions. Addax Petroleum's exploration and appraisal budget for 2009 includes the drilling of up to 12 wells in all regions of operations, including the Corporation's first deepwater exploration well.

CALGARY, Canada, November 10 /PRNewswire/ --

- Selected highlights for 2009 include:

Production Guidance

- working interest gross oil production in 2009 is expected to average between 140 and 145 Mbbl/d, an increase of up to 7 per cent over 2008;

- oil production from Nigeria is expected to show modest growth averaging between 108 and 112 Mbbl/d. The expected production from Nigeria includes further increases from OML123 plus relatively flat production from OML124, partially offset by declines from OML126 which were originally anticipated in 2007;

- oil production from Gabon is expected to average between 31 and 34 Mbbl/d. The expected production from Gabon consists of continued growth from the Corporation's onshore license areas while maintaining production levels from the offshore license area; and,

- production guidance for 2009 does not include any oil production from the Kurdistan Region of Iraq. The Corporation, together with its partners Genel Enerji and the Kurdistan Regional Government, plans to conclude its export pipeline studies in 2009 and complete the second and third stages of the early production system to enable total production capacity of up to 60 Mbbl/d.

Budgeted Capital Expenditure

- the Corporation's capital expenditure budget for 2009 is $1,600 million, excluding new business acquisition considerations, farm- in fees and license signature fees;

- budgeted development capital expenditures amount to $1,251 million split 68% per cent to Nigeria, 27% to Gabon and the remaining 5% to the Kurdistan Region of Iraq. Development drilling is the largest item, accounting for $734 million or 59 per cent of the development budget; and,

- budgeted exploration and appraisal capital expenditures amount to $345 million including $173 million in Nigeria (excluding the deepwater license area) and Cameroon, $50 million in deepwater Nigeria and the JDZ, $86 million in Gabon and $36 million in the Kurdistan Region of Iraq. The Corporation plans to drill 12 exploration and appraisal wells in 2009 including three in Nigeria, one in Cameroon, five in Gabon, one in Deepwater Gulf of Guinea and two in the Kurdistan Region of Iraq.

The following table summarizes the Corporation's current oil production guidance and capital expenditure budget for 2008 and 2009:

------------------------------------------------------------------------- 2008 and 2009 Outlook Highlights 2008 2009 Change ------------------------------------------------------------------------- Oil Production Guidance, Mbbl/d Nigeria 106 to 111 108 to 112 1 - 2% Gabon 28 to 31 31 to 34 10 - 11% Total 136 to 140 140 to 145 3 - 4% Capital Expenditure Budget - by Region, $ million Nigeria (excluding deepwater) Cameroon 1,101 1,028 -7% Gabon 388 425 10% Deepwater Nigeria JDZ 51 50 -2% Kurdistan Region of Iraq 56 93 66% Corporate 6 4 -33% Total 1,602 1,600 0% Capital Expenditure Budget - by Type, $ million Development 1,294 1,251 -3% Exploration appraisal 302 345 14% Corporate 6 4 -33% Total 1,602 1,600 0% ------------------------------------------------------------------------- -------------------------------------------------------------------------

CALGARY, Canada, November 10 /PRNewswire/ --

In addition, Addax Petroleum has compiled a contingent capital investment budget totalling approximately $850 million, some of which could be invested in 2009 should the prevailing oil prices exceed the levels anticipated by the base $1.6 billion capital investment budget. The contingent capital budget includes approximately $300 million for identified exploration targets, with the balance for development projects.

CALGARY, Canada, November 10 /PRNewswire/ --

Analyst Conference Call

CALGARY, Canada, November 10 /PRNewswire/ --

Financial analysts are invited to participate in a conference call and webcast today Monday, November 10, at 11:00 a.m. 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:

CALGARY, Canada, November 10 /PRNewswire/ --

Toronto: +1-416-644-3416 Toll-free (Canada and the U.S): +1-800-733-7560 Toll-free (U.K.): +44(0)-800-2288-3501 Toll-free (Switzerland): +41(0)-800-2288-3501

CALGARY, Canada, November 10 /PRNewswire/ --

A replay of the call will be available at +1-416-640-1917 or +1-877-289-8525, passcode 21277906 followed by the number sign until Wednesday, November 26, 2008.

Investors are invited to listen to the live webcast of the presentation via the following link:

http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2465980

The presentation slides for the above will be available prior to the conference call and webcast on Addax Petroleum's website at http://www.addaxpetroleum.com.

CALGARY, Canada, November 10 /PRNewswire/ --

Legal Notice - Forward-Looking Statements

CALGARY, Canada, November 10 /PRNewswire/ --

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 may, will, should, could, would, anticipate, believe, intend, expect, plan, estimate, budget, outlook 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, assumptions 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 assumptions and 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, production 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.

CALGARY, Canada, November 10 /PRNewswire/ --

Non-GAAP Measures

CALGARY, Canada, November 10 /PRNewswire/ --

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.

CALGARY, Canada, November 10 /PRNewswire/ --

For further information: For additional information, please contact: Mr. Michael Ebsary, Chief Financial Officer, Tel.: +41(0)22-702-94-03, michael.ebsary@addaxpetroleum.com; Mr. Craig Kelly, Investor Relations, Tel.: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Mr. Chad O'Hare, Investor Relations, Tel.: +41(0)22-702-94-10, chad.o'hare@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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