CALGARY, Canada, November 12 /PRNewswire/ --

- Funds Flow From Operations increased by 37 per cent and Net Income increased by 63 per cent from Q3, 2006 - Working interest gross oil production increased by 40 per cent, to an average of 128,200 barrels per day - Continued step-out appraisal success at Taq Taq

Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) today announced its financial and operational results for the quarter ended September 30, 2007. 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 2007 and 2008.

This announcement coincides with the filing with the Canadian and UK securities regulatory authorities of Addax Petroleum's Financial Statements for the quarter ended September 30, 2007 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 at 11:00 a.m. Eastern Time/4:00 p.m. London, U.K. time today, Monday, November 12. 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: "The third quarter has been a record quarter for Addax Petroleum from both an operational and financial standpoint, continuing the strong growth momentum established in the first half of 2007. In addition to the steady growth in our Nigeria operations, we have made significant improvements at our fields in Gabon, both from an operational and production perspective. We also have made valuable progress at Taq Taq, delivering our most prolific step-out appraisal well to date. In the deepwater Joint Development Zone, we have significantly enhanced our portfolio with the addition of a 40 per cent interest in JDZ Block 1. Looking forward into 2008, we foresee another exciting year of high activity and growth."

Selected Financial Highlights - Petroleum sales before royalties in the third quarter of 2007 amounted to CAD$925 million, an increase of 58 per cent over petroleum sales before royalties of CAD$584 million in the third quarter of 2006. The growth in petroleum sales before royalties arose from the combination of increased petroleum sales volumes and increased average crude oil sales price, up by 10 per cent to CAD$74.31 per barrel (/bbl) as compared to CAD$67.60/bbl realized in the corresponding period in 2006. - Net income in the third quarter of 2007 was CAD$122 million, an increase of 63 per cent over net income of CAD$75 million in the third quarter of 2006. Net income per share (basic and diluted) increased by 53 per cent to CAD$0.78 per share in the third quarter of 2007 compared to CAD$0.51 per share in the corresponding period in 2006. - Funds Flow From Operations for the third quarter of 2007 increased 37 per cent to CAD$335 million compared to CAD$244 million for the corresponding period in 2006. Funds Flow From Operations increased by 30 per cent to CAD$2.15 per share (basic) in the third quarter of 2007 compared to CAD$1.65 per share in the corresponding quarter in 2006. On a diluted basis, Funds Flow From Operations per share increased by 25 per cent to CAD$2.06 per share in the third quarter of 2007 compared to CAD$1.65 per share in the corresponding period in 2006.

The following tables summarize the selected third quarter and first nine months financial highlights. ------------------------------------------------------------------------ Selected third quarter Quarter ended financial highlights September 30 ------------------ CAD$ million unless otherwise stated 2007 2006 Change ------------------------------------------------------------------------ Petroleum sales before royalties 925 584 58% Average crude oil sales price, CAD$/bbl 74.31 67.60 10% Net income 122 75 63% Funds Flow From Operations 335 244 37% Average shares outstanding (basic), million 155 148 5% Earnings per share, CAD$/share (basic) 0.78 0.51 53% Funds Flow From Operations per share, CAD$/share (basic) 2.15 1.65 30% Average shares outstanding (diluted), million 162 148 9% Earnings per share, CAD$/share (diluted) 0.78 0.51 53% Funds Flow From Operations per share, CAD$/share (diluted) 2.06 1.65 25% ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Selected first nine months Nine months ended financial highlights September 30 ------------------ CAD$ million unless otherwise stated 2007 2006 Change ------------------------------------------------------------------------ Petroleum sales before royalties 2,305 1,500 54% Average crude oil sales price, CAD$/bbl 67.27 65.34 3% Net income 302 190 59% Funds Flow From Operations 885 614 44% Average shares outstanding (basic), million 155 139 12% Earnings per share, CAD$/share (basic) 1.94 1.37 42% Funds Flow From Operations per share, CAD$/share (basic) 5.70 4.44 28% Average shares outstanding (diluted), million 158 139 14% Earnings per share, CAD$/share (diluted) 1.94 1.37 42% Funds Flow From Operations per share, CAD$/share (diluted) 5.59 4.44 26% ------------------------------------------------------------------------ ------------------------------------------------------------------------

New Business Highlights - As previously announced on September 25, 2007, the Corporation has agreed to acquire a 40 per cent working interest in Block 1 of the Joint Development Zone ("JDZ") from a subsidiary of ExxonMobil for a consideration of CAD$78 million and 2 per cent of Addax Petroleum's share of profit oil produced from Block 1. Completion of the acquisition is subject to the approval of the Joint Development Authority of the JDZ. Upon completion of the acquisition, Addax Petroleum will have working interests in JDZ Blocks 1, 2, 3 and 4. Selected Operational Highlights - Average working interest oil production in the third quarter of 2007 was 128.2 thousand barrels per day (Mbbl/d), an increase of 40 per cent over third quarter 2006 average oil production of 91.5 Mbbl/d. Nigeria production increased by 17 per cent to 104.5 Mbbl/d in the third quarter of 2007 compared to 89.1 Mbbl/d in the corresponding period in 2006. Gabon contributed 23.7 Mbbl/d in the third quarter of 2007 compared to 2.4 Mbbl/d in the third quarter of 2006, when the Gabon production assets were acquired. Total oil production during the quarter was 11.8 MMbbl, as compared to oil sales volumes of 12.4 MMbbl during the quarter. - Continued step-out appraisal success in the Taq Taq field in the Kurdistan Region of Iraq and exploration success in OML137 offshore Nigeria, where a potentially significant gas discovery was made at Udele West at the start of the third quarter. - Capital expenditures, excluding new business acquisition considerations, farm-in fees and license signature fees, increased by 47 per cent to CAD$281 million in the third quarter of 2007, up from CAD$191 million in the third quarter of 2006. Development capital expenditures totaled CAD$250 million in the third quarter of 2007, an increase of 92 per cent over third quarter 2006 development capital expenditures of CAD$130 million. Exploration and appraisal capital expenditures decreased to CAD$31 million in the third quarter of 2007 from CAD$61 million in the third quarter of 2006. - Throughout the third quarter of 2007, the Corporation directly operated seven drilling rigs, four offshore Nigeria, one onshore Nigeria and two onshore Gabon, and indirectly operated one further drilling rig in the Kurdistan Region of Iraq through its joint venture company, Taq Taq Operating Company. - Development project highlights in the third quarter of 2007 include: Nigeria - four new development wells were drilled, three on OML123 and one on OML124; - all four new wells were placed on production during the quarter; - surface facilities development was ongoing at the OML123 license area. Gabon - six development wells were drilled on the Corporation's onshore license areas; - five of the six new onshore wells were placed on production; - surface facilities development was ongoing at the onshore Maghena and offshore Etame license areas. - Exploration and appraisal activity and highlights in the third quarter of 2007 include: Gulf of Guinea Shallow Water (Nigeria and Cameroon) - one exploration well was drilled on OML137, offshore Nigeria resulting in the Udele West discovery; - as previously reported on July 12, 2007, the Udele-2 discovery well discovered seven gas bearing intervals with individual gross gas columns of between 41 and 113 feet, 542 feet in aggregate. The discovery well was suspended and the Corporation intends to re-enter and deepen the well and carry out flow tests over selected intervals at a later date; - in Cameroon, the Corporation contracted for a shallow-draft drilling rig to start shallow water exploration drilling on the Ngosso license area in the first quarter of 2008. Dredging work is ongoing to provide access to the planned drilling location. Gabon - the Corporation has started a 3D seismic survey over the southern portion of the Maghena and Awoun license areas. The Corporation anticipates that the 3D survey, once acquired, processed and interpreted, will provide valuable information in the further development, appraisal and exploration of this area which contains the Obangue, Koula and Damier fields. Gulf of Guinea Deep Water (Nigeria and JDZ) - technical studies are ongoing to evaluate exploration prospect drilling locations. Kurdistan Region of Iraq - as previously announced on September 6, 2007, a successful step-out appraisal well, TT-07, was drilled and tested at an aggregate rate of 37.6 Mbbl/d from three separate intervals. The TT-07 well was drilled approximately 2.9 kilometres south- southeast of the crestally-located TT-04 well; - during the third quarter, the TT-08 and TT-09 step-out appraisal wells were spudded approximately 1.7 kilometers east and approximately 1.7 kilometers south west of the TT-04 well, respectively. Both wells are being drilled with the purpose of appraising the flanks of the Taq Taq field. - presently, the TT-09 well has been drilled to total depth and is being prepared for flow testing, the results of which will be announced following the completion of testing; - drilling of the TT-08 well has progressed to just above the reservoir and the remainder of the well will be drilled and tested following the TT-09 flow testing; - acquisition of a 3D seismic survey over the Taq Taq field and 2D seismic surveys over the Kewa Chermila area and east of Taq Taq were concluded in the third quarter. - Operating netbacks in the third quarter of 2007 increased by 15 per cent to CAD$54.94/bbl compared to CAD$47.90/bbl in the third quarter of 2006. Unit operating expenses in the third quarter of 2007 decreased slightly by 3 per cent to CAD$6.29/bbl compared to the third quarter 2006 level of CAD$6.47/bbl, reflecting unit cost improvements due to increased production and sales which was partially offset by increasing operating costs due to industry demand.

The following tables summarize the selected third quarter and first nine months operational information. ------------------------------------------------------------------------ Selected third quarter Quarter ended operational highlights September 30 ------------------ 2007 2006 Change ------------------------------------------------------------------------ Annual average working interest gross oil production (Mbbl/d) Nigeria (offshore) 96.1 85.1 13% Nigeria (onshore) 8.4 4.0 110% Nigeria sub-total 104.5 89.1 17% Gabon (offshore) 6.3 1.4 350% Gabon (onshore) 17.4 1.0 1640% Gabon sub-total 23.7 2.4 888% Total 128.2 91.5 40% Prices, expenses and netbacks (CAD$/bbl) Average realized price 74.31 67.60 10% Operating expense 6.29 6.47 (3%) Operating netback 54.94 47.90 15% ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Selected first nine months Nine months ended operational highlights September 30 ------------------ 2007 2006 Change ------------------------------------------------------------------------ Annual average working interest gross oil production (Mbbl/d) Nigeria (offshore) 95.0 79.4 20% Nigeria (onshore) 7.2 3.7 95% Nigeria sub-total 102.2 83.1 23% Gabon (offshore) 6.3 0.5 1160% Gabon (onshore) 14.0 0.4 3400% Gabon sub-total 20.3 0.9 2156% Total 122.5 84.0 46% Prices, expenses and netbacks (CAD$/bbl) Average realized price 67.27 65.34 3% Operating expense 6.58 6.81 (3%) Operating netback 49.81 46.49 7% ------------------------------------------------------------------------ ------------------------------------------------------------------------

Dividends

The Board of Directors of the Corporation has declared a dividend of CAD$0.05 per share for the third quarter of 2007. The dividend is payable on December 14, 2007 to shareholders of record on November 30, 2007. A dividend of CAD$0.05 per share was declared and paid in the third quarter of 2007 relating to the second quarter of 2007. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends.

Outlook

The Corporation has completed its budget outlook for the remainder of 2007 and for 2008. Addax Petroleum's budgeting process is continually driven by the philosophy of funding its capital expenditures with internally generated cash flow, augmented from time to time with the use of debt, while also retaining balance sheet strength and financial flexibility to expand the Corporation's operations and property portfolio. The Corporation seeks to reinvestment internally generated funds on an economic basis, balanced between development and exploration activities. In particular, the Corporation's development budget for 2008 is focused on building and maintaining production to plateau levels on existing producing assets in Nigeria, continued production growth in Gabon through the ongoing development of Addax Petroleum operated onshore fields and potential first production from the Kurdistan Region of Iraq. The Corporation will reinvest the cash flow generated from this production base into an ambitious exploration and appraisal program which is designed to accelerate reserves and resources additions to continue the growth of the company. Addax Petroleum's exploration and appraisal budget for 2008 includes the drilling of up to 15 wells in all regions of operations, including the Corporation's first deepwater exploration well.

- Selected highlights for 2007 include: Production Guidance - working interest gross oil production is expected to average approximately 127 Mbbl/d, in line with the guidance range of 127 to 133 Mbbl/d; - oil production from Nigeria is expected to remain ahead of guidance reflecting better than anticipated performance from OML124 and OML126, partially offset by lower than expected production from OML123; - oil production from Gabon is expected to continue to improve from the third quarter into the fourth quarter, but on average will be below guidance for the year. Export pipeline constraints for onshore production from a third party operator is the principal factor for lower than expected production. Well production capacity is per guidance but total production is less than guidance for the reason noted above. Capital Expenditure Estimate - the Corporation's revised capital expenditure estimate for 2007 is CAD$1,072 million, excluding new business acquisition considerations, farm-in fees and license signature fees, relative to its previously reported full year estimate of CAD$1,150 million; - estimated development capital expenditures amount to CAD$817 million split 74 per cent to Nigeria and the balance to Gabon. Development drilling is the largest item, accounting for CAD$518 million or 63 per cent of the development estimate; - estimated exploration and appraisal capital expenditures amount to CAD$251 million including CAD$138 million in Nigeria (excluding the deepwater license area) which has resulted in three promising discoveries in the first nine months of 2007 and CAD$76 million for the successful appraisal of Taq Taq. - Selected highlights for 2008 include: Production Guidance - working interest gross oil production in 2008 is expected to average between 140 and 145 Mbbl/d, an increase of approximately 10 to 14 per cent over 2007; - oil production from Nigeria is expected to show modest growth averaging between 106 and 111 Mbbl/d. The expected production from Nigeria includes further increases from OML123 plus flat production from OML124, partially offset by decline from OML126 which was originally anticipated in 2007 but has not been observed; - oil production from Gabon is expected to average between 31 and 36 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. Addax Petroleum expects that oil production from onshore Gabon will continue to be partially constrained by a third party operator through most of 2008, although the Corporation has commenced the extension of its export system which, once commissioned, will allow for further production increases by availing of spare capacity through the Shell-operated Rabi station; - production guidance for 2008 does not include any oil production from the Kurdistan Region of Iraq, although the Corporation, together with its partners Genel Enerji and the Kurdistan Regional Government, is planning for the installation of an early production system for the Taq Taq field. The early production system is expected to commence as early as the second half of 2008 and would include oil production of approximately 10 Mbbl/d from Taq Taq (approximately 4 Mbbl/d working interest to Addax Petroleum). Budgeted Capital Expenditure - the Corporation's capital expenditure budget for 2008 is CAD$1,509 million, excluding new business acquisition considerations, farm-in fees and license signature fees; - budgeted development capital expenditures amount to CAD$1,175 million split 73% per cent to Nigeria, 23% to Gabon and the balance to the Kurdistan Region of Iraq. Development drilling is the largest item, accounting for CAD$636 million or 54 per cent of the development budget; - budgeted exploration and appraisal capital expenditures amount to CAD$330 million including CAD$175 million in Nigeria (excluding the deepwater license area) and Cameroon, CAD$90 million in deepwater Nigeria and the JDZ, CAD$42 million in Gabon and CAD$23 million in the Kurdistan Region of Iraq. The Corporation plans to drill up to 15 exploration and appraisal wells in 2008. The Corporation is endeavouring to start exploration drilling on its deepwater license areas as soon as possible in 2008. The Corporation is actively seeking a drilling rig of opportunity to accelerate its deepwater drilling program and mitigate scenarios in which the Aban Abraham drilling rig, already contracted to start drilling in late 2008, may be delayed.

The following table summarises the Corporation's current oil production guidance and capital expenditure budget for 2007 and 2008: ------------------------------------------------------------------------ 2007 and 2008 Outlook Highlights 2007 2008 Change ------------------------------------------------------------------------ Oil Production Guidance, Mbbl/d Nigeria 106 106 to 111 0 - 5% Gabon 21 31 to 36 48 - 71% Total 127 140 to 145 10 - 14% Capital Expenditure Budget - by Region, CAD$ million Nigeria (excluding deepwater) & Cameroon 744 1,034 39% Gabon 228 307 35% Deepwater Nigeria & JDZ 20 90 350% Kurdistan Region of Iraq 76 74 (3%) Corporate 4 4 0% Total 1,072 1,509 41% Capital Expenditure Budget - by Type, CAD$ million Development 817 1,175 44% Exploration & appraisal 251 330 31% Corporate 4 4 0% Total 1,072 1,509 41% ------------------------------------------------------------------------ ------------------------------------------------------------------------

Finally, the Corporation expects to report its 2007 year-end petroleum reserves and resources estimates, prepared independently and in accordance with National Instrument 51-101, in the second half of January, 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, government approvals and completion of current negotiations. 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.

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.

Analyst Conference Call

Financial analysts are invited to participate in a conference call today Monday, November 12 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 listen to the conference call, please call one of the following: Toronto: +1-416-644-3418 Toll-free (Canada and the U.S): +1-800-732-0232 Toll-free (U.K.): 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 21251977 (followed by the number sign) until Monday, November 26, 2007.

A webcast will be available at the following URL:

http://www.axisto.com/webcasting/investis/addax-petroleum/q3-2007-results/

For further information: Mr. Michael Ebsary, Chief Financial Officer, Tel.: +41(0)22-702-94-03, michael.ebsary@addaxpetroleum.com; 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