Addax Posts Q1 Results: Exports Approved for Taq Taq, Drilling to Commence

Addax Petroleum announced its results for the quarter ended March 31, 2009. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars.

CEO's Comment

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said, "Addax Petroleum continues to deliver strong operating cash flows and healthy netbacks despite a significantly lower oil price environment. As part of the Corporation's ongoing commitment to maintain liquidity and to operate under a balanced budget approach, certain development activities were postponed in order to maintain a concerted focus on exploration.

"The stage has been set for our high impact projects to make for an exciting year. We are extremely pleased to have recently received a confirmation from the Kurdistan Regional Government that crude oil exports will commence from the Taq Taq field. In addition, with the recently contracted Deepwater Pathfinder drillship, the Corporation has entered a new and significant phase of exploration in the highly prospective Deepwater Gulf of Guinea. While the original schedule had us commencing drilling in the JDZ Block 4 in the fourth quarter, we understand that the drillship may now arrive earlier in the second half of 2009."

Dividend Declaration

The Board of Directors of the Corporation declared a dividend of CDN$0.10 per share on May 12, 2009 which is payable on June 18, 2009 to shareholders of record on June 4, 2009. During the first quarter of 2009, the Corporation declared a dividend of CDN$0.10 per share. In accordance with Canada Revenue Agency Guidelines, dividends paid by the Corporation during the period are eligible dividends.

Recent Developments

In May 2009, the Corporation received formal notification from the Kurdistan Regional Government that international exports of crude oil from the Taq Taq licence area will commence on or soon after June 1, 2009.

In April 2009, the Corporation completed drilling one exploration well at the Okwori East prospect in the OML126 licence area offshore Nigeria where the well was plugged and abandoned as a dry hole.


The Corporation's production outlook for 2009 continues to be in line with previous guidance provided. Addax Petroleum expects annual average working interest gross oil production for 2009 to be between 132 and 137 Mbbl/d.