Addax Petroleum receives notification for international exports from the Kurdistan Region of Iraq

    KRG authorises commencement of crude oil exports from the Taq Taq field

    CALGARY, May 11 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or
the "Corporation") (TSX:AXC and LSE:  AXC) today announced that it has received
formal notification from the Kurdistan Regional Government ("KRG") of its
decision to commence the export of crude oil. The notification requests that
Addax Petroleum and Genel Energy International Ltd ("Genel Energy") prepare to
truck oil from the Taq Taq field to the Khurmala export station on or soon
after June 1, 2009. The crude oil will be marketed by the State Oil Marketing
Organization ("SOMO") and revenues will be directed to Addax Petroleum and
Genel Energy through the coordination of the KRG on terms to be agreed under
the framework of the production sharing contract. Crude oil delivered to the
Khurmala station will be exported via the Iraq-Turkey main export pipeline to
the Mediterranean port city of Ceyhan.
    Earlier in 2009, Addax Petroleum and Genel Energy submitted a full field
development plan for the Taq Taq field to the KRG which contemplates peak
production of up to 180,000 bbl/d. Existing facilities at the Taq Taq field
provide for production capacity of up to 40,000 bbl/d and the Corporation is
in the process of expanding the facilities to 70,000 bbl/d of capacity.
Following successful exports by truck, a pipeline is expected to be
constructed in support of the full field development.

    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 8.8 Mbbl/d for
1998 to an average of 136.5 Mbbl/d for 2008. Further information about Addax
Petroleum is available at or at

    Reader Advisory Regarding Forward-Looking Information

    Certain statements contained in this news release, including statements
related to commencement of international export of crude oil, plans to truck
oil to the Khurmala export station, export routing and marketing, approval of
full field development plan, completion of additional facilities, pipeline
construction, dates that areas will come on stream and expected production
therefrom, development plans and schedules, future capital expenditures,
business strategy and goals, and statements that contain words such as "may",
"will", "would", "could", "should", "anticipate", "believe", "intend",
"expect", "plan", "estimate", "budget", "outlook", "propose", "project", and
statements relating to matters that are not historical fact constitute
forward-looking information within the meaning of applicable Canadian
securities legislation.
    Forward-looking information is subject to known and unknown risks and
uncertainties attendant with oil and gas operations, and other factors, which
include, but are not limited to: imprecision of reserves and resources
estimates; ultimate recovery of reserves; commodity prices; general economic,
market and business conditions; industry capacity; competitive action by other
companies; refining and market margins; the ability to produce and transport
crude oil and natural gas to markets; weather and climate conditions; results
of exploration and development drilling and other related activities;
fluctuation in interest rates and foreign currency exchange rates; 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; international political
events; and expected rates of return. More specifically, production may be
affected by 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.
    In this news release the Corporation has made assumptions with respect to
the following:

    -  prices for oil sales;
    -  oil reserves and resource quantities and the discounted present value
       of future net cash flows from these reserves and the ultimate
       recoverability of reserves;
    -  timing and amount of future production, forecasts of capital
       expenditures and the sources of financing thereof;
    -  the amount, nature, timing and effects of capital expenditures;
    -  plans for drilling wells and the timing and location thereof;
    -  expectations regarding the negotiation and performance of contractual
    -  operating and other costs;
    -  business strategies and plans of management;
    -  anticipated benefits and enhanced shareholder value resulting from
       prospect development and acquisitions; and
    -  treatment under the fiscal terms of Production Sharing Contracts and
       governmental regulatory regimes.

    The Corporation's actual results could differ materially from those
anticipated in these forward-looking statements if the assumptions underlying
them prove incorrect, or if one or more of the uncertainties or risks
described above materializes. Risk factors are discussed in greater detail in
filings made by Addax Petroleum with the Canadian provincial securities
    Readers are strongly cautioned that the above list of factors affecting
forward-looking information is not exhaustive. Further, forward-looking
statements are made as at the date they are given and, except as required by
applicable law, Addax Petroleum does not intend, and does not assume any
obligation, to update any forward-looking statements, whether as a result of
new information or otherwise. The forward-looking statements contained in this
new release are expressly qualified by this advisory.

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. Mark Antelme, Press
Relations, Tel.: +44 (0) 20 3178 6242,

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890