Addax Petroleum announces update to continued appraisal program at Taq Taq



    TT-09 appraisal well flows at an aggregate rate of 16,170 barrels per day

    CALGARY, Jan. 21 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the "Corporation") (TSX:AXC and LSE:AXC) today announced flow test results
for the TT-09 well, the fifth appraisal and development well recently drilled
on the Taq Taq field by Taq Taq Operating Company, the joint venture company
formed by Genel Enerji A.S. ("Genel") 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 16,170 bbl/d of light oil, measured gravity of 48 degrees API with low
gas oil ratio. The intervals tested were a 231 meter completion interval in
the Shiranish formation which flowed at a rate of 2,580 bbl/d and a 104 meter
interval in the Kometan formation which flowed at a rate of 13,590 bbl/d. The
testing of the third formation, the Qamchuqa formation, experienced completion
problems and produced test results which the Corporation believes are not
representative of the formation. Oil flow rates from the Shiranish and Kometan
intervals were restricted by 40/64" and 128/64" choke sizes respectively.
Evaluation of these flow test results is ongoing.
    Commenting, Jean Claude Gandur, President and Chief Executive Officer of
Addax Petroleum said: "The 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. We are
pleased with the positive and proactive nature of our partners in the
Kurdistan Regional Government and we are delighted that Addax Petroleum has
been and continues to be at the forefront of the development of this fast
emerging oil region."
    TT-09 is a step-out well located approximately 1.7 kilometres southwest
of the TT-04 well, which was located near the crest of the Taq Taq field.
TT-09 is the first of two wells designed to appraise the flanks of the Taq Taq
structure. The TT-09 well was spudded the last day of August and completed
drilling in the end of October at a total depth of 2,444 metres. Testing of
TT-09 commenced in mid-December, 2007. Interpretation of data acquired from
TT-09, including wireline and 27 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 and TT-07 wells.
    The TT-09 well is the fifth of a six well drilling and seismic appraisal
program by Addax Petroleum and Genel. The drilling of the sixth appraisal
well, TT-08, has been completed and is being prepared for flow testing. The
TT-08 well is located approximately 1.7 kilometres east of the TT-04 well
along the minor axis of the Taq Taq field. In addition to the ongoing drilling
program, Addax Petroleum and Genel have recently completed shooting 290 square
kilometres of 3D seismic over the Taq Taq field. The results of the drilling
and seismic appraisal program are being integrated into a full field
development plan which Addax Petroleum and Genel 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.
    Addax Petroleum and Genel have also recently finalized the acquisition of
175 kilometres of 2D seismic over the Kewa Chirmila prospect and surrounding
area, which is in the same license area as the Taq Taq field. A second, larger
drilling rig has been contracted by Addax Petroleum and Genel and is expected
to be mobilized for spudding the first exploration well at Kewa Chirmila
during the second quarter of 2008.

    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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