Addax Petroleum awarded additional interest in deep water exploration license in Joint Development Zone



    Additional 7.2 per cent interest in JDZ Block 4 license area

    CALGARY, July 16 /CNW/ - Addax Petroleum Corporation (TSX: AXC and LSE:
AXC) ("Addax Petroleum" or the "Corporation") announces today that it has been
awarded an additional 7.2 per cent participating interest in Block 4 of the
Nigeria/Sao Tome and Principe Joint Development Zone ("JDZ") by an independent
arbitration tribunal. The award increases Addax Petroleum's interest in the
license area from 38.3 per cent to 45.5 per cent. Addax Petroleum is also the
operator of Block 4.
    Commenting, Jean Claude Gandur, President and Chief Executive Officer of
Addax Petroleum said: "This award further enhances our leading position in
this world class exploration region. I am very excited about the prospective
oil resources of Addax Petroleum's entire deepwater portfolio and I am looking
forward to launching our high impact drilling campaign. Due to our interests
across four JDZ license areas, a focused drilling strategy will be undertaken
to include a consecutive exploration campaign of up to 10 wells across the
region to demonstrate the full potential of these assets. I believe these
exploration assets will be an important contributor to the growth of the
company and will deliver value to our shareholders."
    In 2007, Addax Petroleum and ERHC Energy Inc. ("ERHC") entered into
arbitration proceedings in respect of a 9 per cent participating interest in
JDZ Block 4 that had been committed to a third party. When that party failed
to fulfil its obligations, the 9 percent reverted to Addax Petroleum and ERHC.
Under the arbitration proceedings, Addax Petroleum claimed entitlement to 7.2
per cent of the 9 percent interest, subject to the carried costs associated
with the balance, being the 1.8 per cent to which ERHC was entitled. A panel
of the London Court of International Arbitration confirmed that Addax
Petroleum is entitled to the 7.2 per cent additional interest for no
additional monetary consideration beyond the $18 million previously paid by
Addax Petroleum to ERHC. Addax Petroleum will continue to carry the costs
associated with ERHC's 19.5 per cent interest in JDZ Block 4.
    Addax Petroleum has contracted to commence drilling operations in JDZ
Block 4 in the fourth quarter of 2008, but believes that the drilling rig will
not be delivered until the second half of 2009. In the interim, the
Corporation continues to seek a rig of opportunity to drill the 458 MMbbl Kina
prospect in JDZ Block 4 as early as the fourth quarter of 2008.
    The JDZ was established in 2001 following the ratification of a formal
bilateral treaty between Nigeria and the island nation of Sao Tome and
Principe. The JDZ is located approximately 200 kilometres offshore Nigeria and
is adjacent to deepwater areas where several large petroleum discoveries have
been made. As at December 31, 2007, NSAI estimates the total best estimate
unrisked prospective oil resources for identified prospects in the JDZ to be
2,323.1 MMbbl (990.5 MMbbl risked), of which the Corporation's working
interest is 726.6 MMbbl (313.0 MMbbl risked), and the total best estimate
unrisked prospective oil resources for the Kina Prospect to be 458.0 MMbbl
(172.5 MMbbl risked).

    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 139,100 bbl/d for the first quarter of
2008. Further information about Addax Petroleum is available at www.sedar.com,
www.londonstockexchange.com or the Corporation's website,
www.addaxpetroleum.com.

    Information about Resources Estimates

    Resources information in this news release is set out in greater detail
in Addax Petroleum's Annual Information Form dated March 13, 2008 ("AIF"),
which is available on the SEDAR website, www.sedar.com, the London Stock
Exchange Market News website, www.londonstockexchange.com or the Corporation's
website, www.addaxpetroleum.com. Resources information in this news release in
respect of the JDZ is derived from NSAI's Estimate of Reserves and Future
Revenue, Contingent Resources, and Prospective Resources report dated January
11, 2008 and is subject to the risks, limitations and other relevant factors
in respect of such resource estimates as set out in Addax Petroleum's AIF.
    Prospective resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective resources have both an
associated chance of discovery and a chance of development. The prospective
oil resources indicate exploration opportunities and development potential in
the event a commercial discovery is made and should not be construed as
reserves or contingent resources. There is no certainty that any portion of
the resources will be discovered. If discovered, there is no certainty that it
will be commercially viable to produce any portion of the resources.

    Legal Notice - Forward-Looking Statements

    Certain statements in this news 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 in this news release includes, but is not limited
to, project development schedules and results, results of exploration
activities and dates by which certain areas may be developed or may come
on-stream, the Corporation's business strategy and goals, future capital and
other expenditures and reserves and resources estimates. 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; volatility of prices of oil and
natural gas; general economic, market and business conditions; industry
capacity; competitive action by other companies; refining and marketing
margins; the ability to produce and transport crude oil and natural gas to
markets; 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 news release is made as of the
date of this news 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 news 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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ADDAX PETROLEUM CORPORATION

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