Addax Issues Update on Gabon Acquisitions

Addax Petroleum Corporation is pleased to provide an operational update regarding its portfolio of oil exploration and production properties in Gabon that it acquired from Pan-Ocean Energy Corporation Limited in September of this year.

Mr. Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum commented, "We are delighted with the success Addax Petroleum has had in integrating our newly acquired operations in Gabon. The Corporation retained the majority of the former Pan-Ocean personnel and continues to build on the excellent relationship that Pan-Ocean had developed with the government of Gabon. In addition, recent appraisal and development drilling onshore and offshore continue to develop the portfolio's reserve base into productive capacity, while also providing encouraging indications which may allow Addax Petroleum to expand its reserve base in the country."

The exploration and development portfolio in Gabon is comprised primarily of the operated, onshore Maghena and Panthere NZE properties which contain respectively the Tsiengui and Obangue oil fields, the non-operated, onshore Awoun property which contains the Koula and Damier oil fields, and the non-operated, offshore Etame Marin property which contains the Etame oil field, the South Tchibala/Avouma oil field and the nearby Ebouri oil field.

The Corporation's onshore activities in Gabon have continued successfully with appraisal drilling at Tsiengui and Obangue and additional development drilling of the Tsiengui field. Since January 2006 a total of seven horizontal development wells have been successfully drilled and completed on the Tsiengui field and two on the Obangue field that were also completed as production wells. The most recent well at Tsiengui confirmed the thickening high quality Gamba sandstone towards the west of the field and the overall consistency of the Corporation's reservoir model. Based on the current reservoir model, it is anticipated that an additional 30 wells will be required to further develop the Tsiengui field. The latest Obangue well was a successful step-out to the east, beyond the limit of current 3D seismic data coverage, and found the reservoir structurally shallower than anticipated suggesting an easterly extension to the Obangue field not previously recognized with a thicker than expected Gamba sandstone in the oil column. The Corporation continues to analyze the Obangue drilling results, however, initial indications are that the results may lead to a substantial increase in the level of oil reserves currently booked for the Obangue field. In addition, a deviated appraisal well was spudded in September 2006 on the onshore Shell-operated Awoun property that will test the extent of the Koula field towards the west.

Production from the Tsiengui and Obangue fields continues to be limited awaiting commissioning of new processing and export capacity. The 33-kilometer 10-inch export pipeline from Tsiengui to the Coucal export facility (Total-operated) has been laid, hydro-tested and buried. The Corporation expects that the export pumping and metering station immediately downstream of the Coucal facility will be completed in the coming weeks such that the new production and export system is expected to be fully operational by mid-November with an export capacity of 30,000 bbls/d.

The 2006 appraisal and development drilling program onshore Gabon has been conducted by the Corporation using the Addax Petroleum-contracted Deutag T-48 drilling rig as well as the occasional use of the Simpler 101 drilling rig. Addax Petroleum is currently arranging for an additional land drilling rig to carry out development and appraisal drilling on the Panthere NZE property, predominantly on the Obangue field.

In the offshore Etame Marin property, two horizontal development wells are planned for the remainder of the year to develop the South Tchibala/Avouma field in addition to an exploration 3D seismic campaign over a prospect to the south-west of the Etame field. The South Tchibala/Avouma development is on track for commissioning by year end; the platform is in place and commissioning in progress, the 16 kilometer pipeline to the Etame field FPSO has been laid, tie-in to the FPSO is in progress and the drilling rig has arrived on location. The South Tchibala/Avouma field is expected to produce between 8,000 and 10,000 bbls/d (2,510 to 3,140 attributable to Addax Petroleum) from the two horizontal wells with production expected to start in the first quarter of 2007. Approval for the development of the nearby Ebouri field was received from the Gabonese authorities in September 2006. Installation of a jacket and a pipeline from the Ebouri field to the Etame FPSO are being planned for the second half of 2007 with the development drilling starting thereafter.

Addax Petroleum expects to achieve its anticipated 2006 exit production rate totaling approximately 18,000 bbls/d from the Corporation's participating interests in its onshore and offshore properties in Gabon.

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 barrels per day for 1998 to an average of approximately 83,000 barrels per day for the first eight months of 2006.

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