Genel and Addax Report Results of Kurdistan Flow Test

Genel Enerji A.S. (Genel), part of the Cukurova Group, and Addax Petroleum Corporation on Monday reported flow test results for the recently drilled TT-04 well, the first well on the Taq Taq field drilled by Taq Taq Operating Company (TTOPCO), the joint venture company formed by Genel and Addax Petroleum to carry out the petroleum operations in the Taq Taq license area in northern Iraq.

Three reservoir intervals were tested separately and flowed at an aggregate rate of 29,790 bbls/d of light, 47 degrees API oil with low gas oil ratio. The intervals tested were a 106-meter perforated interval in the Shiranish formation that flowed at a rate of 3,940 bbls/d, a 55-meter perforated interval in the Kometan formation that flowed at a rate of 12,930 bbls/d, and a 86-meter bare foot interval in the Qamchuga formation that flowed at a rate of 12,920 bbls/d. Oil flow rates from the three intervals are in a 64/64" choke size. In each instance, the flow rates were constrained by the limited capacity of the surface test facilities. Evaluation of these flow test results is ongoing.

Commenting on the results, Dr. Ashti Hawrami, the Minister of Natural Resources of the Kurdistan Regional Government of Iraq, said; "This is a great achievement and we look forward to establishing our initial export of oil from the Taq Taq field in 2007. Additionally, we will be utilizing some of the oil resources to satisfy the local requirement for the refined products and power needs. We will continue our exploration campaign to achieve our export oil target of one million barrels per day of new oil from the Kurdistan Region over the next few years. This will make a significant contribution to the oil revenues of Iraq to be shared by all peoples of Iraq."

Commenting, Mehmet Sepil, Chief Executive Officer of Genel Enerji said: "We are very pleased with the test results of the TT-04 well. For the first time, a privately owned Turkish Oil Company is developing a major oil field. We believe that this project will make Genel Enerji a world-class exploration and production company in the international petroleum industry. This project will also generate wealth for the people of the Kurdistan Region and of Iraq while also helping to meet the urgent energy requirements of the region."

Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "This is a significant milestone for Addax Petroleum. The Taq Taq field has the potential to be a major source of reserves and production growth for the company. As demonstrated by these test results, the production potential of Taq Taq is truly significant and highlights the under-developed potential of the region. We believe that the Taq Taq field can deliver excellent value to the people of the Kurdistan Region and of Iraq and for our shareholders."

The TT-04 well is the first well drilled on the Taq Taq field, drilled using the TTOPCO-owned drilling rig and located some 500 meters from the TT-01 well, the Taq Taq field discovery well drilled in 1978. TT-04 was spudded in mid-May and reached a total depth of 2,286 meters in early September.

Interpretation of data acquired, including wireline static reservoir pressure data, indicate the presence of a significant and extensive fracture system and a single oil column in the Taq Taq field through the Shiranish, Kometan and Qamchuga formations in excess of 500 meters. The TT-04 well was the first of a three well drilling program by Genel and Addax Petroleum. The drilling of the second appraisal and development well, TT-05, is now in progress.

The Taq Taq field is located in the Kurdistan Region of Iraq some 60 kilometers northeast of Kirkuk, 85 kilometers northeast of Erbil and 120 northwest of Sulaimaniyah.

Genel Enerji A.S. is a Turkish registered company and owned by the Turkish Cukurova Group. The Cukurova Group is among Turkey's largest industrial and commercial conglomerates with numerous investments ranging from automotive, telecommunications, media, textiles, energy and information technology services.

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 91,500 barrels per day for the third quarter of 2006.