Addax Petroleum Secures Drillship for Gulf of Guinea Program

Addax Petroleum has entered into an agreement with Aban Abraham Pte Ltd, a wholly owned subsidiary of Aban Offshore Limited for the provision of the Aban Abraham drillship to start drilling operations as early as the second quarter of 2008.

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "I am delighted that Addax Petroleum has secured the necessary drilling capability on competitive terms. This contract will enable us to advance our plans to demonstrate the considerable value in our highly prospective Gulf of Guinea deep water exploration portfolio which we have assembled throughout 2006. Our contract with Aban will enable us to complete an extensive exploration and appraisal program which I believe has the potential to realize considerable value for Addax Petroleum, its shareholders and stakeholders."

The contract, which has been entered into jointly by Addax Petroleum and Sinopec, requires Aban to drill up to ten wells in total comprising five firm well slots and five optional well slots. Well slots will be allocated under a separate agreement between Addax Petroleum and Sinopec. It is intended that firm well slots will be allocated to Addax Petroleum to satisfy its minimum work commitments on operated blocks in the deep water Gulf of Guinea. The Aban contract anticipates that the Aban Abraham will start drilling operations as early as the second quarter of 2008 once it has completed a drilling campaign for a third party operator. Payments under the contract are based on a day rate charging structure and a maximum day rate of $410,000, to be allocated appropriately to Addax Petroleum and its relevant co-venturers.

Addax Petroleum holds interests in four deep water licenses in the Gulf of Guinea. These are Blocks 2, 3 and 4 in the Joint Development Zone ("JDZ") between Nigeria and the Republic of Sao Tome and Principe and OPL291 offshore Nigeria. Addax Petroleum operates JDZ Block 4 and OPL291 and JDZ Blocks 2 and 3 are operated by Sinopec and Anadarko, respectively. Under the terms of the production sharing contracts for the Addax Petroleum operated properties, the co-venturers have committed to minimum work programs that include three exploration wells on JDZ Block 4 and one well on OPL291. The Aban contract ensures that Addax Petroleum, as operator on behalf of the co-venturers, will have the drilling capacity required to meet its minimum work program obligations. Addax Petroleum's deep water exploration portfolio is summarized in the following table:

	      Addax Petroleum's Gulf of Guinea Deep Water Exploration Portfolio

	                                    Addax                 Interest
	                                  Petroleum              Carried by  Minimum
	                                Participating    Net       Addax      Well
	    Area     Block   Operator      Interest     Acres    Petroleum   Program
	                                     (%)       (acres)      (%)      (gross)
	      JDZ      2     Sinopec        14.3%       24,500      7.3%        1
	               3     Anadarko       15.0%       24,700     10.0%        1
	               4        AP          38.3%       81,100     17.7%        3
	    Nigeria  OPL291     AP          72.5%      230,600     27.5%        1

The Aban Abraham is a deep water drill ship currently undergoing extensive refurbishment and modification at the Sembawang Shipyard in Singapore. The Aban Abraham was built in Holland in 1976 as a world class second generation drillship named the Pelerin. The drillship was operated from 1976 to 2002 in water depths of up to approximately 1,400 meters (4,600 feet) offshore west Africa, Norway, eastern Canada and Brazil and then cold-stacked until 2006 when purchased by Aban. When refurbishment is completed, scheduled for later this year, the drill ship will be capable of drilling in water depths of up to 2,100 meters (6,900 feet) having been upgraded from second generation to fourth generation capability. Once commissioned, the Aban Abraham will undertake drilling operations for a third party operator before starting drilling operations for Addax Petroleum.

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 in 2006.

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