Addax Petroleum announces acquisition in Kurdistan region of Iraq

    33.33 per cent interest in Sangaw North Production Sharing Contract

    CALGARY, Oct. 9 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or
the "Corporation") (TSX:AXC and LSE:AXC), today announces that it has acquired
a 33.33 per cent interest in the Sangaw North Production Sharing Contract
("PSC"). The Sangaw North license area is operated by Sterling Energy plc
("Sterling") and is located approximately 80 kilometers southeast of the
Corporation's Taq Taq field.
    Commenting today, Addax Petroleum's President and Chief Executive
Officer, Jean Claude Gandur, said: "We are pleased to expand our activities in
the Kurdistan Region of Iraq to include the highly prospective Sangaw North
license area. Given our successful drilling campaign at Taq Taq, we intend to
assist our partner to expedite exploration drilling. We believe that
exploration success at Sangaw North would offer attractive synergies with the
development of Taq Taq for the benefit of all the people of Iraq and our
    The Sangaw North PSC covers a gross area of approximately 121,600 acres
(492 km(2)). Petroleum exploration activity to date includes field studies and
the acquisition of 310 km of 2D seismic which is expected to be completed in
November of this year. The Sangaw North license area contains a large surface
anticline, a number of surface oil seeps and the operator is targeting to spud
an exploration well in mid-2009.
    The Sangaw North PSC is subject to an assignment to the Korean National
Oil Corporation which, when completed, will reduce the Corporation's interest
to 26.67 per cent. In addition, the Kurdistan Regional Government has the
right to require that at a future date a government nominated entity is
assigned 25 per cent which, if exercised, will further reduce the
Corporation's interest to 20 per cent.
    Under the terms of the acquisition, the consideration from Addax
Petroleum comprises the reimbursement of Sterling's past costs as well as
funding the seismic campaign and the drilling of the first exploration well.
This reimbursement is funded from the Corporation's existing financing
facilities and the future costs will be included in the Corporation's 2009
capital budget which is expected to be funded entirely from the Corporation's
funds flow from operations. The Corporation continues to have substantial
funding capacity within its existing financing facilities.

    About Addax Petroleum

    Addax Petroleum is an international oil and gas exploration and
production company with a strategic focus on 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 136,000 bbl/d for the first half of 2008.
Further information about Addax Petroleum is available at, or the Corporation's website,

    Legal Notice - Forward-Looking Statements

    Forward-looking information includes, but is not limited to, exploration
drilling plans for Sangaw North, completion of an acquisition agreement with
the Korean National Oil Corporation, KRG back-in rights, reference to business
strategy and goals, future capital and other expenditures, existing and future
financial capacity, the submission of development plans, project development
schedules and results, results of exploration activities and dates by which
certain areas may be developed or may come on-stream, 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:
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; 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

For further information:

For further information: Mr. Craig Kelly, Investor Relations, Tel.: +41
(0) 22 702 95 68,; Mr. Chad O'Hare, Investor
Relations, Tel.: +41 (0) 22 702 94 10, chad.o'; 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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