Addax Petroleum Commissions Production & Export System in Gabon

Addax Petroleum has completed the commissioning of a new production and export system from its Maghena property onshore Gabon. This commissioning of the new system provides the capacity to alleviate the constraints which had been restricting the export capacity from the Corporation's Tsiengui and Obangue fields to just over 5,000 barrels per day. The new system was commissioned on Sunday, November 26 and is currently flowing at a rate of approximately 8,000 barrels per day.

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "The commissioning of the new onshore production and export system in Gabon is an important step in the development of our onshore properties in the country. With the removal of current export constraints via the new system, we expect to reach our targeted 2006 exit rate of 18,000 barrels per day of production from our onshore and offshore properties in Gabon. The new production and export system will also assist us in continuing the rapid growth of Addax Petroleum's total production to a targeted average of approximately 130,000 barrels per day from all of the Corporation's properties in 2007."

The new production and export system is comprised of a 30,000 barrel per day central production facility at the Tsiengui field, a 30-kilometre, 10-inch pipeline from Maghena to the Total Gabon operated Coucal facility and additional heating and pumping capacity at Coucal. The system then ties into the main northern export trunk line and the export terminal at Cap Lopez in Port Gentil, Gabon. The new production and export system has a current export capacity of 20,000 barrels per day and the Corporation expects to increase the capacity to 30,000 barrels per day in the first half of 2007 with the installation of additional heating and pumping facilities at Coucal.