Addax Reports 80% Jump in Proved, Probable Reserves

Addax Petroleum Corp. announced late Thursday that its Board of Directors has accepted a reserve report prepared by Netherland, Sewell & Associates Inc., independent oil and natural gas reservoir engineers ("NSAI" and the "NSAI Report"), that evaluates all of the Corporation's petroleum reserves.

As at December 31, 2006, NSAI estimates gross working interest proved plus probable reserves for the Corporation to be 353.7 MMbbl, representing an increase of approximately 80 percent over the quantities estimated by NSAI at the prior year-end. In addition, the Corporation 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.

This announcement coincides with the filing of a material change report by the Corporation which can be accessed through the Corporation's website at www.addaxpetroleum.com and through www.sedar.com. The reserve estimates in this release are based on forecast prices and costs. Except as otherwise indicated, references to "$" and to "dollars" refer to the currency of the United States of America.

CEO's Comment

Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "2006 has been Addax Petroleum's most active year to date and I am delighted that our efforts continue to strengthen significantly our existing reserves base. This excellent performance reflects continued reserves growth in Nigeria, our major producing area, combined with the acquisition of significant reserves in Gabon and drilling in the Kurdistan Region of Iraq. Growth in production and reserves are core to Addax Petroleum's value creation strategy. I believe our exceptional 2006 success in growing our production, adding to our reserves base and extending our reserve life represents a major accomplishment that Addax Petroleum has achieved for its shareholders and stakeholders."

Selected Reserve Report Highlights

The NSAI Report was prepared for the Corporation at the direction of Addax Petroleum's Technical and Reserves Committee, using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101.

The NSAI Report is limited to oil reserves on the Corporation's properties and does not include exploration and contingent resources. Highlights of the NSAI Report and the Corporation's 2006 production, with comparatives to 2005 results, where appropriate, are as follows:

	    -   Total gross working interest proved plus probable reserves increased
	        by approximately 80 percent to 353.7 MMbbl as at December 31, 2006
	        from 196.7 MMbbl as at December 31, 2005.
	    -   In Nigeria, gross working interest proved plus probable reserves
	        increased by approximately 10 percent to 215.4 MMbbl as at
	        December 31, 2006 from 196.7 MMbbl as at December 31, 2005 and oil
	        production for 2006 averaged 86,300 bbl/d.
	    -   In Gabon, gross working interest proved plus probable reserves are
	        estimated to be 98.2 MMbbl as at December 31, 2006. The Corporation
	        acquired the business of Pan-Ocean Energy Corporation Limited ("Pan-
	        Ocean") in Gabon in September 2006 which had reported gross working
	        interest proved plus probable reserves of 67.5 MMbbl as at
	        December 31, 2005 as estimated by Pan-Ocean's independent reserve
	        engineers. Since Addax Petroleum acquired the assets in Gabon in
	        September, the Corporation has achieved averaged daily production of
	        11,800 bbl/d and 3,750 bbl/d over the entire year.
	    -   In the Kurdistan Region of Iraq, gross working interest proved plus
	        probable reserves for the Corporation at the Taq Taq field are
	        estimated to be 40.1 MMbbl as at December 31, 2006. The Corporation
	        did not book any reserves for the Taq Taq field in 2005.
	    -   The Corporation's overall 2006 reserves replacement ratio was 5.8.
	        The reserves replacement ratio is calculated by dividing the gross
	        working interest proved plus probable reserve additions of
	        189.9 MMbbl (including acquisitions and before deduction of 2006
	        production of 32.9 MMbbl) by the 2006 production.
	    -   The Corporation's 2006 reserve life index, based on proved plus
	        probable reserves as at December 31, 2006 and average 2006 oil
	        production, has increased by 2.5 years to 10.8 years in 2006 from
	        8.3 in 2005. The 2006 reserve life index is calculated by dividing
	        the gross working interest proved plus probable reserves of
	        353.7 MMbbl as at December 31, 2006 by the 2006 production of 32.9
	        MMbbl.
	    -   Total gross working interest proved plus probable plus possible
	        reserves have increased by 72 percent to 480.4 MMbbl as at
	        December 31, 2006 from 278.7 MMbbl as at December 31, 2005. The
	        estimated net present value of future net revenue after taxes for the
	        gross working interest proved plus probable plus possible reserves as
	        at December 31, 2006, discounted at 10 percent, is $4,147 billion
	        based on forecast prices and costs.

	    The following table summarizes selected reserves information as at
December 31, 2006:

	                     Oil Reserves and Future Net Revenues
	         based on Forecast Prices and Costs as at December 31, 2006
	    -------------------------------------------------------------------------

	                                                                    Estimated
	                                                                    NPV10% of
	                                                                   Future Net
	                                                                     Revenue
	                                  Gross Working Interest Reserves   After Tax
	                                  -------------------------------- ----------
	                                                           Proved
	                                                             plus
	                                                Proved    Probable    Proved
	                                                  plus       plus       plus
	                                     Proved   Probable    Possible  Probable
	                                  -------------------------------- ----------
	                                     (MMbbl)    (MMbbl)    (MMbbl) ($million)

	    Nigeria                           116.0      215.4      292.9      1,997
	    Gabon                              66.0       98.2      121.4      1,175
	    Kurdistan Region of Iraq              -       40.1       66.1        134
	    Total                             182.0      353.7      480.4      3,306


	    The following table reconciles changes in gross working interest proved
plus probable reserves:


	            Reconciliation of the Corporation's Reserves based on
	                          Forecast Prices and Costs
	    -------------------------------------------------------------------------

	                                                   Gross Working Interest
	                                               Proved plus Probable Reserves
	                                              -------------------------------
	                                                            (MMbbl)

	    Estimated as at December 31, 2005                        196.7
	    Acquisitions net of Disposals                             99.6
	    Extensions                                                68.7
	    Technical Revisions and Economic Factors                  21.6
	    Production                                               (32.9)
	    Estimated as at December 31, 2006                        353.7
	    

Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and has increased its crude oil production from an average of 8,800 bbl/d for 1998 to an average of approximately 90,000 bbl/d for 2006.

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