Addax Petroleum announces 2007 Year-End Reserves, Resources and 2007 Average Oil Production



    
    -   2007 Reserve Replacement Ratio of 302 per cent and Reserve Life Index
        of 9.7 years
    -   Year end 2007 Proved plus Probable oil reserves increase 26 per cent
        to 446.7 MMbbl
    -   Year end 2007 unrisked prospective oil resources of 2,246 MMbbl
        (risked 738 MMbbl)
    -   Year end 2007 contingent gas resources of 2,415 Bcf and 77.2 MMbbl of
        liquids
    

    CALGARY, Jan. 16 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the "Corporation") (TSX:AXC and LSE:AXC), today announces that its Board of
Directors has accepted a reserve report prepared by Netherland, Sewell &
Associates Inc., independent oil and natural gas reservoir engineers ("NSAI"
and the "NSAI Report"), that evaluates all of the Corporation's petroleum
reserves and certain resources. As at December 31, 2007, NSAI estimates gross
working interest proved plus probable reserves for the Corporation to be
446.7 MMbbl, representing an increase of approximately 26 per cent over the
quantities estimated by NSAI at the prior year-end. In addition, the
Corporation produced an average of 125,940 bbl/d of oil during 2007,
representing an increase of approximately 40 per cent over 2006 and close to
the 2007 target of 127,000 bbl/day. Average oil production for 2007 included
104,510 bbl/d from Nigeria and 21,430 bbl/d from Gabon.
    This announcement coincides with the filing of a material change report
by the Corporation which can be accessed through the Corporation's website at
www.addaxpetroleum.com and through www.sedar.com. The reserve estimates in
this release are based on forecast prices and costs. Except as otherwise
indicated, references to "$" and to "dollars" refer to the currency of the
United States of America.

    CEO's Comment

    Commenting today, Addax Petroleum's President and Chief Executive
Officer, Jean Claude Gandur, said: "I am pleased to report very strong
operational results for 2007. Our production performance was outstanding,
delivering 40 per cent growth over 2006. Strong production growth, combined
with a favourable oil price environment, has allowed us to continue to invest
in the growth of our reserves and resources base. I believe we have invested
well and have delivered strong reserves growth in each of our operations
areas, as laid out in our reserves disclosure. Growth in production and
reserves has been complimented and balanced with increases in our prospective
oil resources and contingent gas resources, providing a platform for continued
future growth. I believe our 2007 success in growing our production and adding
to our reserves and resources base represents a major accomplishment that
Addax Petroleum has achieved for its shareholders and stakeholders."

    The NSAI Report

    The NSAI 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 and in accordance with National Instrument 51-101. In addition to oil
reserves on the Corporation's license areas, the NSAI Report includes
prospective oil resources for the Corporation's license areas in West Africa
and contingent gas resources for the Corporation's Nigeria license areas.

    
    Selected Oil Reserves Highlights

    Highlights of oil reserves reported in the NSAI Report and the
Corporation's 2007 production, with comparatives to 2006 results, are as
follows:

    -   Total gross working interest proved plus probable reserves increased
        by approximately 26 per cent to 446.7 MMbbl as at December 31, 2007
        from 353.7 MMbbl as at December 31, 2006. The Corporation did not
        make reserves acquisitions or disposals in 2007 and the 2007 reserves
        additions arise primarily from the Corporation's operational
        activity, including extensions and discoveries, and favourable
        economic factors.

    -   In Nigeria, gross working interest proved plus probable reserves
        increased by approximately 22 per cent to 262.7 MMbbl as at
        December 31, 2007 from 215.4 MMbbl as at December 31, 2006 and oil
        production for 2007 averaged 104,510 bbl/d.

    -   In Gabon, gross working interest proved plus probable reserves
        increased by approximately 11 per cent to 109.4 MMbbl as at
        December 31, 2007 from 98.2 MMbbl as at December 31, 2006 and oil
        production for 2007 averaged 21,430 bbl/d.

    -   In the Kurdistan Region of Iraq, gross working interest proved plus
        probable reserves increased by approximately 86 per cent to
        74.6 MMbbl as at December 31, 2007 from 40.1 MMbbl as at December 31,
        2006, all of which are contained in the Taq Taq field. There was no
        oil production from the Taq Taq field during 2007.

    -   The Corporation's overall 2007 reserves replacement ratio was 302 per
        cent. The reserves replacement ratio is calculated by dividing the
        gross working interest proved plus probable reserve additions of
        139.0 MMbbl (before deduction of 2007 production of 46.0 MMbbl) by
        the 2007 production.

    -   The Corporation's 2007 reserve life index, based on proved plus
        probable reserves as at December 31, 2007 and average 2007 oil
        production, has decreased slightly to 9.7 years from 10.8 in 2006.
        The 2007 reserve life index is calculated by dividing the gross
        working interest proved plus probable reserves of 446.7 MMbbl as at
        December 31, 2007 by the 2007 production of 46.0 MMbbl. The
        Corporation's oil production for December, 2007 averaged
        143,600 bbl/day and included 117,200 bbl/day in Nigeria and
        26,400 bbl/day in Gabon.

    -   Total gross working interest proved plus probable plus possible
        reserves have increased by 21 per cent to 580.3 MMbbl as at
        December 31, 2006 from 480.4 MMbbl as at December 31, 2006.

    The following table summarises selected reserves information as at
December 31, 2007:

                     Oil Reserves and Future Net Revenues
         based on Forecast Prices and Costs as at December 31, 2007
    -------------------------------------------------------------------------

                                                                   Estimated
                                                                   NPV10% of
                                                                  Future Net
                                                                    Revenue
                             Gross Working Interest Reserves       After Tax
                            ---------------------------------    ------------
                                                     Proved
                                                      plus
                                         Proved     Probable         Proved
                                          plus        plus            plus
                              Proved    Probable    Possible        Probable
                            ---------------------------------    ------------
                              (MMbbl)    (MMbbl)     (MMbbl)       ($million)

    Nigeria                    154.2      262.7       348.7            3,659
    Gabon                       79.1      109.4       128.2            2,099
    Kurdistan Region of Iraq       -       74.6       103.4              640
    Total                      233.3      446.7       580.3            6,398


    The following table reconciles changes in gross working interest proved
plus probable reserves:

                 Reconciliation of the Corporation's Reserves
                     based on Forecast Prices and Costs
    -------------------------------------------------------------------------

                                                   Gross Working Interest
                                               Proved plus Probable Reserves
                                              -------------------------------
                                                           (MMbbl)

    Estimated as at December 31, 2006                       353.7
    Acquisitions net of Disposals                             0.0
    Discoveries and Extensions                               40.8
    Technical Revisions                                      66.0
    Economic Factors                                         32.2
    Production                                              (46.0)
    Estimated as at December 31, 2007                       446.7


    Selected Prospective Oil Resources Highlights

    Highlights of prospective oil resources reported in the NSAI Report, with
comparatives to 2006 results, are as follows:

    -   Prospective oil resources were reported for the majority of the
        Corporation's license areas in West Africa, including the recently
        acquired JDZ Block 1. Prospective oil resources were not reported for
        the Taq Taq license area in the Kurdistan Region of Iraq and the
        majority of the Corporation's license areas onshore Gabon. In each
        instance, data collection and evaluation at year-end 2007 were
        insufficiently advanced to identify prospective resources.

    -   Total gross working interest best estimate unrisked prospective oil
        resources were 2,246 MMbbl as at December 31, 2007. Risked
        prospective oil resources increased by approximately 10 per cent to
        738 MMbbl as at December 31, 2007 from 670 MMbbl as at December 31,
        2006.

    -   Of the year-end 2007 risked prospective oil resources, 476 MMbbl or
        64 per cent relate to the Corporation's Deep Water Gulf of Guinea
        portfolio, 210 MMbbl or 28 per cent to onshore Nigeria and shallow
        water offshore Nigeria and Cameroon, and 51 MMbbl or 8 per cent to
        Gabon, predominantly offshore.


    The following table summarises selected prospective oil resources
information as at December 31, 2007:

                Estimates of the Corporation's Prospective Oil
               Resources in West Africa as at December 31, 2007
    -------------------------------------------------------------------------

                                                          Best Estimate
                                                   Prospective Oil Resources
                                                   -------------------------
                                                          Unrisked    Risked

                                                           (MMbbl)    (MMbbl)

    Shallow water and onshore Nigeria
      OML123                                                  401        110
      OML124                                                   82         16
      OML126                                                  250         37
      OML137                                                   74         15
      Sub-total                                               807        178

    Shallow water Cameroon
      Ngosso                                                  100         32
      Sub-total                                               100         32

    Deep Water Gulf of Guinea
      JDZ (1, 2, 3 & 4)                                       727        313
      OPL291, Nigeria                                         477        163
      Sub-total                                             1,204        476

    Gabon
      Onshore                                                  31          8
      Offshore                                                105         43
      Sub-total                                               136         51

    -------------------------------------------------------------------------
    Total                                                   2,246        738
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Totals may not add because of rounding


    Selected Contingent Gas Resources Highlights

    Highlights of contingent gas resources reported in the NSAI Report, with
comparatives to 2006 results, are as follows:

    -   Contingent gas resources reported are limited to the Corporation's
        producing license areas in the shallow water and onshore license
        areas in Nigeria only. 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 Corporation
        is presently formulating commercial development proposals these
        contingent gas resources.

    -   Total gross working interest best estimate contingent gas resources
        increased by approximately 71 per cent to 2,415 Bcf as at
        December 31, 2007 from 1,412 Bcf as at December 31, 2006. Best
        estimate liquids associated with contingent gas resources increased
        by approximately 106 per cent to 77.2 MMbbl as at December 31, 2007
        from 37.4 MMbbl as at December 31, 2006.

    -   The largest additions are in OML137 where 926 Bcf and 25.3 MMbbl were
        added arising from the Corporation's successful exploration efforts
        during 2007.


    The following table summarises selected contingent gas resources
information as at December 31, 2007, including associated gas liquids
quantities:

                  Estimates of the Corporation's Contingent
               Gas Resources in Nigeria as at December 31, 2007

    -------------------------------------------------------------------------
                      Contingent Gas Resources(1)   Associated Gas Liquids(2)
                                (Bcf)                        (MMbbl)
    -------------------------------------------------------------------------
    OML123                     1,000                           27.9
    OML124                       381                           22.2
    OML126                       106                            1.8
    OML137                       926                           25.3
    Okwok                          2                            0.0
    -------------------------------------------------------------------------
    Total                      2,415                           77.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) after deductions for plant fuel and extraction of gas liquids
    (2) includes LPG and C5+
    

    About Addax Petroleum

    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 126,000 bbl/d for 2007. Further
information about Addax Petroleum is available at www.addaxpetroleum.com or at
www.sedar.com.

    Legal Notice - Forward-Looking Statements

    Certain statements in this press release constitute forward-looking
statements under applicable securities legislation. Such statements are
generally identifiable by the terminology used, such as "anticipate",
"believe", "intend", "expect", "plan", "estimate", "budget", "outlook", "may",
"will", "should", "could" , "would" or other similar wording. Forward-looking
information includes, but is not limited to, reference to business strategy
and goals, future capital and other expenditures, reserves and resources
estimates, drilling plans, construction and repair activities, the submission
of development plans, seismic activity, production levels and the sources of
growth thereof, project development schedules and results, results of
exploration activities and dates by which certain areas may be developed or
may come on-stream, royalties payable, financing and capital activities,
contingent liabilities, environmental matters, government approvals and
completion of current negotiations. By its very nature, such forward-looking
information requires Addax Petroleum to make assumptions that may not
materialize or that may not be accurate. This forward-looking information is
subject to known and unknown risks and uncertainties and other factors, which
may cause actual results, levels of activity and achievements to differ
materially from those expressed or implied by such information. Such factors
include, but are not limited to: imprecision of reserves and resources
estimates; ultimate recovery of reserves; prices of oil and natural gas;
general economic, market and business conditions; industry capacity;
competitive action by other companies; fluctuations in oil prices; refining
and marketing margins; the ability to produce and transport crude oil and
natural gas to markets; the ability to market and sell natural gas under its
production sharing contracts; the effects of weather and climate conditions;
the results of exploration and development drilling and related activities;
fluctuation in interest rates and foreign currency exchange rates; the ability
of suppliers to meet commitments; actions by governmental authorities,
including increases in taxes; decisions or approvals of administrative
tribunals; changes in environmental and other regulations; risks attendant
with oil and gas operations, both domestic and international; international
political events; expected rates of return; and other factors, many of which
are beyond the control of Addax Petroleum. More specifically, production may
be affected by such factors as exploration success, start-up timing and
success, facility reliability, reservoir performance and natural decline
rates, water handling, and drilling progress. Capital expenditures may be
affected by cost pressures associated with new capital projects, including
labour and material supply, project management, drilling rig rates and
availability, and seismic costs. These factors are discussed in greater detail
in filings made by Addax Petroleum with the Canadian provincial securities
commissions.
    Readers are cautioned that the foregoing list of important factors
affecting forward-looking information is not exhaustive. Furthermore, the
forward-looking information contained in this press release is made as of the
date of this press release and, except as required by applicable law, Addax
Petroleum does not undertake any obligation to update publicly or to revise
any of the included forward-looking information, whether as a result of new
information, future events or otherwise. The forward-looking information
contained in this press release is expressly qualified by this cautionary
statement.





For further information:

For further information: Mr. Patrick Spollen, Investor Relations, Tel.:
+41 (0) 22 702 95 47, patrick.spollen@addaxpetroleum.com; Mr. Craig Kelly,
Investor Relations, Tel.: +41 (0) 22 702 95 68,
craig.kelly@addaxpetroleum.com; Ms. Marie-Gabrielle Cajoly, Press Relations,
Tel.: +41(0) 22 702 94 44, marie-gabrielle.cajoly@addaxpetroleum.com; Mr. Nick
Cowling, Press Relations, Tel.: (416) 934-8011, nick.cowling@cossette.com; Mr.
James Henderson, Press Relations, Tel.: +44 (0) 20 7743 6673,
james.henderson@pelhampr.com; Mr. Alisdair Haythornthwaite, Press Relations,
Tel.: +44 (0) 20 7743 6676, alisdair.haythornthwaite@pelhampr.com

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