• 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 announces 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.
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.
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