Addax Petroleum

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Address
16 Avenue Eugne Pittard
CH-1206 Geneva
Switzerland
Tel +41 22 702 9400
Fax +41 22 702 9590
Web http://www.addaxpetroleum.com

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Capex

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.

Future Plans

Production

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).

Production

Addax produced an average of 125,940 bbl/d of oil during 2007, representing an increase of approximately 40 per cent over 2006 and close to the 2007 target of 127,000 bbl/day. Average oil production for 2007 included 104,510 bbl/d from Nigeria and 21,430 bbl/d from Gabon.

Addax produced an average of 90,050 bbl/d of oil during 2006, representing an increase of 38% over 2005. Average oil production for 2006 included 86,300 bbl/d from Nigeria, which exceeded the target production level of 85,000 bbl/d, and 3,750 bbl/d from Gabon.

Reserves

As at December 31, 2007, NSAI estimates gross working interest proved plus probable reserves for Addax to be 446.7 MMbbl, representing an increase of approximately 26 per cent over the quantities estimated by NSAI at the prior year-end.

• 2007 Reserve Replacement Ratio of 302 per cent and Reserve Life Index of 9.7 years
• Year end 2007 Proved plus Probable oil reserves increase 26 per cent to 446.7 MMbbl
• Year end 2007 unrisked prospective oil resources of 2,246 MMbbl (risked 738 MMbbl)
• Year end 2007 contingent gas resources of 2,415 Bcf and 77.2 MMbbl of liquids

Who's Who

Jean Claude Gandur
Chief Executive Officer and Director
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James Pearce
Chief Operating Officer
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Michael Ebsary
Chief Financial Officer
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David Codd
Chief Legal Officer and Corporate Secretary
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Peter Dey
Chairman
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Brian Anderson
Director
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James Davie
Director
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Stephen Paul de Heinrich
Director
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Gerry Macey
Director
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Afolabi Oladele
Director
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Wesley Twiss
Director and Chairman of the Audit Committee
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Offices

Switzerland
Head Office
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Canada
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