Taq-Taq Flows at 35,750 bbl/d for Addax

Addax Petroleum Corporation announced flow test results for the TT-08 well, the sixth appraisal and development well recently drilled on the Taq Taq field by Taq Taq Operating Company, the joint venture company formed by Genel Enerji and Addax Petroleum to carry out the petroleum operations in the Taq Taq license area.

Two reservoir intervals were tested separately and flowed at an aggregate rate of 35,750 bbl/d of light oil, measured gravity of 48 degrees API with low gas oil ratio. The intervals tested were a 298 meter completion interval in the Shiranish formation which flowed at a rate of 19,180 bbl/d and a 135 meter interval in the Kometan formation which flowed at a rate of 16,570 bbl/d. Oil flow rates from the Shiranish and Kometan intervals were restricted by a 128/64-in. choke size. The third formation, the Qamchuqa formation, was encountered as expected below the oil-water contact and was tested to obtain additional information on aquifer strength and fracture connectivity. Evaluation of these flow test results is ongoing.

Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "We are extremely pleased with the very high test rates achieved from the most recently tested flank well at Taq Taq which included the single highest flow rate from one formation in the program to date. We have now successfully completed the first appraisal phase for the Taq Taq field and have acquired a great deal of knowledge about the field in the process. The ongoing success of our appraisal program at Taq Taq continues to be very encouraging and is a significant further step towards our goal of producing first commercial oil in the second half of 2008."

The TT-08 well is a step-out well located approximately 1.7 kilometres east of the TT-04 well, which was located near the crest of the Taq Taq field, and is the second of two wells designed to appraise the flanks of the Taq Taq structure. The TT-08 well was spudded in mid-July and completed drilling in mid-December, after the rig returned from drilling TT-09, at a total depth of 2,366 metres. Testing of the TT-08 well commenced in mid-February, 2008. Interpretation of data acquired from the TT-08 well, including wireline and five metres of core, confirmed the presence of a significant and extensive fracture system in the tested formations as observed in the TT-04, TT-05, TT-06, TT-07 and TT-09 wells.

The TT-08 well is the sixth and final well in the first phase drilling and seismic appraisal program by Addax Petroleum and Genel Enerji. The second phase appraisal program will commence with the drilling of the next appraisal and development well, TT-10. The TT-10 well is also intended to test the shallower Pilaspi formation as well as the potential of the deeper Jurassic and Triassic. A second, larger drilling rig has been contracted by Addax Petroleum and Genel Enerji and is expected to be mobilized during the second quarter of 2008. The new rig will first spud the first exploration well at Kewa Chirmila before drilling the TT-10 well.

The results of the drilling and seismic appraisal programs are being integrated into a full field development plan which Addax Petroleum and Genel Enerji expect to commence implementing in 2008. The first stage of a full field development plan is expected to include an early production system with the goal of producing approximately 10 Mbbl/d during the second half of 2008 from the Taq Taq field.