Addax Announces Results of Exploration Potential Study

Addax Petroleum Corp. on Wednesday announced the results of a prospective oil and contingent gas resources report prepared by Netherland, Sewell & Associates Inc. ("NSAI" and the "NSAI Resources Report").

The NSAI Resource Report was issued in connection with Addax's previously announced intended secondary listing on the London Stock Exchange. It evaluates the Corporation's identified prospective oil resources and contingent gas resources, and it is contained within the UK listing prospectus available at www.addaxpetroleum.com.

As at December 31, 2006, NSAI estimates working interest best estimate unrisked gross prospective oil resources for the Corporation to be 1,307 MMbbl and the corresponding risked estimate to be 670 MMbbl. In addition, NSAI estimates working interest best estimate gross contingent gas resources for the Corporation's properties to be 1,583 Bcf. The prospective oil resources and contingent gas resources are in addition to the Corporation's proved, probable and possible reserves as reported by the Corporation on January 18, 2007.

CEO's Comment

Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "The independent assessment by NSAI of our prospective oil and contingent gas resources clearly demonstrates the upside potential of Addax Petroleum. We have built and continue to build a true E&P company that has a balance of both significant cash flow generating production and high impact exploration potential. We have also assembled the capabilities required, including a high quality exploration team, for us to develop and realize on the substantial upside identified in the NSAI Resource Report."

The NSAI Resources Report was prepared for the Corporation at the direction of Addax Petroleum's Technical and Reserves Committee, using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") and in accordance with National Instrument 51-101. In this context, the prospective oil resources are defined as those quantities of oil estimated to be contained in accumulations yet to be discovered while the contingent gas resources are defined as those quantities of gas estimated to be potentially recoverable from known accumulations but are not currently economic. All prospective oil resource estimates referred to in this press release denote, if discovered, recoverable quantities reported as the most likely or best estimates and limited to the Corporation's working interest after giving effect to government back-in rights, where applicable. All contingent gas resource estimates referred to in this press release relate to the Corporation's working interest in its producing Nigeria license areas and denote discovered recoverable quantities prior to giving effect to government back-in rights, if any.

Selected Prospective Oil Resources Highlights In undertaking its assessment of prospective oil resources, NSAI relied upon the prospect, lead and work-in-progress inventory developed by Addax Petroleum as at December 31, 2006. At that time, the Corporation's prospect and lead inventory was more developed in some license areas and less so in others. The Corporation considers its exploration prospect inventory to be well developed for its shallow water and onshore Nigeria license areas, to be partially developed for its Cameroon and deepwater Gulf of Guinea license areas, to be predominantly undeveloped in its license areas in Gabon and yet to be developed the Kurdistan Region of Iraq. Development of a complete exploration prospect inventory for each license area includes the acquisition, processing, interpretation of seismic or geological mapping of prospects.

The following table summarizes selected prospective oil resources information as at December 31, 2006:

    -------------------------------------------------------------------------
                                                          Best Estimate
                            Number of   Overall     Prospective Oil Resources
                            prospects  Chance of    -------------------------
                      Area   reviewed   Success      Unrisked         Risked
    -------------------------------------------------------------------------
                     acres                 %            MMbbl          MMbbl
    Shallow water
    -------------
     and onshore
     -----------
     Nigeria
     -------
      OML123        90,700      29        61%             179            110
      OML124        74,100       2        44%              36             16
      OML126       178,300       3        39%              94             37
      OML137       209,800       4        36%             137             50
      Okwok          9,000       -         -                -              -
      Sub-total    561,900      38        48%             446            214

    Shallow water
    -------------
     Cameroon
     --------
      Ngosso        70,300       9        70%              37             26
      Sub-total     70,300       9        70%              37             26

    Deep Water
    ----------
     Gulf of
     -------
     Guinea
     ------
      JDZ (2,3 &
       4)          130,300      18        79%             286            225
      OPL291,
       Nigeria     230,600       2        36%             456            164
      Sub-total    360,900      20        52%             742            389

    Gabon
    -----
      Onshore      317,200       3        35%              17              6
      Offshore     973,300      12        55%              65             36
      Sub-total  1,290,500      15        51%              82             42

    Kurdistan
    ---------
     Region of
     ---------
     Iraq
     ----
      Taq Taq      105,800       -         -                -              -
      Sub-total    105,800       -         -                -              -
    -------------------------------------------------------------------------
    Total        2,389,400      82       51%            1,307            670
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Since December 31, 2006, Addax Petroleum has undertaken exploration activity on its OML123 and OML137 license areas, offshore Nigeria. On OML123, the Corporation successfully explored and appraised the Antan prospect, whereas on OML137, the Corporation is currently drilling the Ofrima North prospect and has encountered gas and oil zones.

Selected Contingent Gas Resource Highlights

In respect of contingent gas resources, the NSAI Resource Report is limited to the Corporation's producing license areas in the shallow water and onshore license areas in Nigeria. They are categorized as contingent because the commerciality of the gas resources and the Corporation's rights to produce the gas resources have yet to be established.

The following table summarizes selected contingent gas resources information as at December 31, 2006, including associated gas liquids quantities:

    
    -------------------------------------------------------------------------
                    Contingent Gas Resources(1)     Associated Gas Liquids(2)
                              (Bcf)                          (MMbbl)
    -------------------------------------------------------------------------
    OML123                     974                             14.7
    OML124                     362                             22.7
    OML126                      69                              0.0
    Okwok                        7                              0.0
    -------------------------------------------------------------------------
    Total                    1,412                             37.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) includes deductions for plant fuel and extraction of gas liquids
    (2) includes LPG and C5+
    

The Corporation is presently in negotiation with Nigerian government authorities for the development of the contingent gas resources from the Corporation's license areas.

Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on West 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 116,000 bbl/d for the first quarter of 2007.