Addax Petroleum acquires shallow water exploration license in Nigeria

    Acquires 40 per cent interest in OPL227 offshore Nigeria

    CALGARY, June 11 /CNW/ - Addax Petroleum Corporation (TSX: AXC and LSE:
AXC) ("Addax Petroleum" or the "Corporation") announces today that it has been
awarded a 40 per cent interest in Oil Prospecting License ("OPL") 227,
offshore Nigeria. Addax Petroleum's co-participants in the OPL227 license area
are Express Petroleum & Gas Company Limited ("Express") and Petroleum
Prospects International Limited ("PPI"), both of which are indigenous Nigerian
oil companies. The OPL227 license area is located in the shallow water
offshore of the western Niger Delta Basin, one of the most prolific petroleum
basins in the world.
    Commenting, Jean Claude Gandur, President and Chief Executive Officer of
Addax Petroleum said: "Addax Petroleum continues to demonstrate its commitment
to Nigeria and add to its extensive exploration portfolio with this
acquisition. Exploration in our core area of Nigeria is a cornerstone to Addax
Petroleum's growth strategy and we are excited to be acquiring a substantial
interest in a license that is in a highly prospective area but has seen very
little modern exploration activity to date. We are also pleased that Addax
Petroleum has been selected by Express and PPI to be their partner of choice
for OPL227 and we look forward to working more closely with both
    The OPL227 license area covers approximately 851 km(2) (210,300 acres)
and is adjacent to and to the north-east of the Shell-operated OML79 license
area. OML79 contains Shell's EA field development which is reported to have
commenced production in 2002 and to contain approximately 350 MMbbl of
remaining recoverable oil. There have been four wells drilled in the OPL227
license area, all between 1974 and 1988, all of which encountered hydrocarbons
in non-commercial quantities or shows. In addition, there has been minimal 2D
seismic and no 3D seismic data acquired on OPL227 to date.
    Under the terms of the award, Addax Petroleum received a 40 per cent
interest in OPL227 while Express and PPI received interests of 39 per cent and
21 per cent, respectively. Express is the operator while Addax Petroleum will
conduct technical operations in its capacity as technical advisor. In return,
Addax Petroleum has paid a farm-in fee to Express and PPI and a signature
bonus to the Federal Government of Nigeria, and is obligated to fund 80 per
cent of a work program comprising a minimum of 500 km(2) of 3D seismic
acquisition during the exploration period, while Express will fund the
remaining 20%. Addax Petroleum will also initially fund 80 per cent of all
capital and operating costs on OPL227, with Express funding the remaining 20
per cent, and will be entitled to a higher than pro-rata share of the net
production from OPL227 until all capital costs have been recovered after which
all parties will be entitled to their pro rata share of production.

    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, or the Corporation's website,

    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, reference to statements with respect to the proposed transaction, the
anticipated benefit of the transaction on the Corporation's business strategy
and goals, future capital and other expenditures, reserves and resources
estimates, 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, financing and capital activities,
contingent liabilities and government approvals. 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: the risks associated with the
finalisation of a Joint Operating Agreement and Technical Services Agreement,
the risk that any applicable conditions of the proposed acquisition may not be
satisfied, 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; he 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

For further information:

For further information: Mr. Patrick Spollen, Investor Relations, Tel.:
+41 (0) 22 702 95 47,; Mr. Craig Kelly,
Investor Relations, Tel.: +41 (0) 22 702 95 68,; Ms. Marie-Gabrielle Cajoly, Press Relations,
Tel.: +41 (0) 22 702 94 44,; Mr.
Nick Cowling, Press Relations, Tel.: (416) 934-8011,; Mr. James Henderson, Press Relations, Tel.: +44 (0)
20 7743 6673,; Mr. Alisdair Haythornthwaite,
Press Relations, Tel.: +44 (0) 20 7743 6676,

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