Addax Petroleum announces agreement to acquire interest in deepwater Joint Development Zone



    To acquire a 40 per cent working interest in JDZ Block 1

    CALGARY, Sept. 25 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the "Corporation") (TSX:AXC and LSE:AXC), today announces that its has
agreed to acquire Esso Exploration and Production Nigeria-Sao Tome (One)
Limited's 40 per cent working interest in Block 1 of the Joint Development
Zone (the "JDZ"). The JDZ lies in the deepwater between Nigeria and Sao Tome
and Principe in the Gulf of Guinea which is one of the most prolific petroleum
regions in the world.
    Commenting today, Addax Petroleum's President and Chief Executive
Officer, Jean Claude Gandur, said: "This acquisition will expand and
consolidate our leading position in this world class exploration region. The
addition of Block 1 to our existing interests in JDZ Blocks 2, 3 and 4 is
consistent with our strategy that a focused, JDZ-wide exploration campaign
will demonstrate the full potential of the region and bring about its earliest
development. In that respect, Block 1 is particularly important as it already
contains a well which encountered hydrocarbons and has several further
prospects. I believe this acquisition to be an important building block in our
broader deepwater Gulf of Guinea portfolio that will deliver value to our
shareholders and stakeholders."
    Addax Petroleum and Esso Exploration and Production Nigeria-Sao Tome
(One) Limited have entered into a sale and purchase agreement whereby Addax
Petroleum has agreed to acquire Esso Exploration and Production Nigeria-Sao
Tome (One) Limited's 40 per cent working interest in Block 1 and, as
consideration, to pay US$77.6 million and 2 per cent of Addax Petroleum's
share of profit oil produced from Block 1. Completion of the sale and purchase
agreement is subject to the approval of the Joint Development Authority of the
JDZ.
    Block 1 is operated by Chevron, which holds a 45.9 per cent working
interest. Block 1 is located approximately 300 kilometres offshore Nigeria in
water depths ranging from 1,600 to 1,900 metres, directly west of JDZ Block 2
and directly north of JDZ Blocks 3 and 4. Block 1 contains the only well
drilled to date in the JDZ, Obo-1, which is significant because it encountered
hydrocarbons when drilled in 2006. There are no further exploration
commitments on Block 1 during the current exploration period.
    Addax Petroleum continues to hold the largest acreage position in the
JDZ, as tabulated below.

    
    -------------------------------------------------------------------------
                     Addax Petroleum's working interest
                     ----------------------------------
    Block              %                     Acres               Operator
    -------------------------------------------------------------------------
    Block 1          40.00%                  69,600               Chevron
    Block 2          14.33%                  24,500               Sinopec
    Block 3          15.00%                  24,700              Anadarko
    Block 4          38.30%                  81,100          Addax Petroleum
    -------------------------------------------------------------------------
    Total                                   199,900
    -------------------------------------------------------------------------
    

    The oil prospectivity of Blocks 2, 3 and 4, but not Block 1, as announced
by Addax Petroleum on May 22, 2007, was previously assessed by the
Corporation's independent reservoir engineers, Netherland, Sewell and
Associates ("NSAI"). NSAI reviewed 18 prospects on Blocks 2, 3 and 4 and
estimated unrisked and risked prospective oil resources respectively to be
286 MMbbl and 225 MMbbl attributable to Addax Petroleum's working interest as
at December 31, 2006.
    The Corporation, along with Sinopec, has contracted the Aban Abraham
deepwater drillship to drill up to ten exploration and appraisal wells,
commencing during the fourth quarter of 2008, in the JDZ and at OPL291, the
Corporation's other deepwater Gulf of Guinea license area.

    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 123,000 bbl/d for the second quarter of
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", "could", "should", "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, the ability to consolidate a
JDZ-wide exploration position, the prospectivity of JDZ Block 1 and the
ability to satisfy all of the conditions of the JDZ Block 1, including the
approval of the Joint Development Authority. 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 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. Mac
Penney, Press Relations, Tel.: (416) 934-8011, mac.penney@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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ADDAX PETROLEUM CORPORATION

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