Addax Announces Public Offering

Addaz Petroleum Corp.

Addax Petroleum Corp. said Thursday that it has entered into an underwriting agreement and filed and obtained a receipt for a final short form prospectus relating to the distribution of 13,000,000 subscription receipts at a price of CDN$27.25 per subscription receipt for aggregate gross proceeds of CDN$354,250,000.

Each subscription receipt represents the right to receive one Addax Petroleum common share, without payment of additional consideration. Addax Petroleum has also granted to the underwriters an over-allotment option in respect of an additional 1,950,000 subscription receipts exercisable at any time not later than 30 days after closing of the offering. The closing of the offering is expected to take place on or about August 16, 2006.<> he subscription receipts will trade on the Toronto Stock Exchange under the symbol "AXC.R" on a "when issued" basis commencing on August 11, 2006.

Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum commented: "We would like to thank our existing and new shareholders for their support through this offering which is another important step in the evolution of Addax Petroleum as a public, high growth exploration and production company. The success of this offering is a resounding endorsement of our strategic vision."

The net proceeds of the offering will be used to fund a portion of the acquisition of certain subsidiaries of Pan-Ocean Energy Corporation Limited (the Acquisition), which was announced on July 20, 2006 and is expected to close on or about September 7, 2006.

The aggregate subscription proceeds, together with interest thereon, will be held in escrow by Computershare Trust Company of Canada and invested in short-term obligations of, or guaranteed by, the Government of Canada (and other approved instruments) pending completion of the Acquisition. In connection with the completion of the Acquisition, the escrowed funds will be released to Addax Petroleum and the outstanding subscription receipts will be converted into Addax Petroleum common shares.

This offering is being underwritten by a syndicate led by RBC Capital Markets, Merrill Lynch Canada Inc. and Scotia Capital Inc., and includes CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., UBS Securities Canada Inc., BNP Paribas (Canada) Securities Inc., FirstEnergy Capital Corp., Canaccord Capital Corporation and Peters & Co. Limited.

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 the largest independent oil producer in Nigeria and has increased its crude oil production from an average of 8,800 barrels per day for 1998 to an average of approximately 80,000 barrels per day for the first half of 2006.