Addax Petroleum Share Discussion Threads

[leeson31] 14/4/2009 16:40

another quid up.. :p

[leeson31] 13/4/2009 17:14

upto cad32.5 in toronto....

[tamtam3] 11/4/2009 19:39

2000p is indeed coming close
Have a Happy Easter
TT

[leeson31] 11/4/2009 11:47

roll on 2000p p/sh.......

[scottishfield] 27/3/2009 20:30

G3A,

I think you have to sort of choose your entry, so to speak. If you're a long player, however, it doesn't really matter so much.

A bit in to start with, and then if if dips, a bit more, worked for me, but overall, the potential is brilliant, & I'm hoping to buy on the dips as it rises, over time.

Look at the frenzy at GKP (I have a position there) & to think that Axc is simarily placed (& yet, it would seem, un-noticed - that's fine).

Good luck whatever yr decision.

Good luck

S-F

[g3a] 27/3/2009 14:25

well done chaps, been follwing this but not in, more's the pity.

[scottishfield] 26/3/2009 19:19

Great, thanks for that, keep in touch etc,

S-F

[leeson31] 26/3/2009 19:15

aye you too. you wanna ask ya phone broker to put up the stock you want up on the bid on level 2, and if you get a seller to match of your stock you therefore buy at the the actual selling price. i find its best to use DMA for AXC.. re big spread.

cheers

[scottishfield] 26/3/2009 19:10

I'll try & get some more I think. jumped into Gkp (in a smallish way)yesterday, but this is (hopefully) one of my hold + add shares. good luck L

[leeson31] 26/3/2009 18:53

lovely n quiet here ScottishField. :p

i reckon next leg up will hit 1800p. i'll see soem at 2000p...

[scottishfield] 25/3/2009 14:16

They're chatting about us on the Hoil thread today. I must admit, I seem to have missed the Hoil rise. Staying put here of course.

[tamtam3] 21/3/2009 18:38

Tristone on Addax -- https://research.tristonecapital.com/Mid-Cap_IC_09-03-20.pdf
Tamtam

[evander3] 20/3/2009 08:11

Anyone know when the final results are due?

[leeson31] 18/3/2009 18:32

impressive;

Three Cretaceous reservoirs were tested separately and flowed at an aggregate
rate of 44,240 bbl/d of light oil, measured gravity of 48API with low gas oil
ratio. Two intervals in each of the Shiranish and Kometan reservoirs were
completed and tested independently due to the highly varying character of each,
as identified through the logs. The independent testing allowed for further
characterization of the flow behaviour of these intervals in addition to
assessing the most likely completion strategy for future development wells.The
Shiranish intervals tested were a 136 metre completion in the upper section
which flowed at a rate of 17,700 bbl/d and an 85 metre completion in the lower
section which flowed at a rate of 13,780 bbl/d. The Kometan intervals tested
were a 67 metre completion in the upper section which flowed at a rate of 19,380
bbl/d and a 49 metre completion in the lower section which flowed at a rate of
14,800 bbl/d. The Qamchuqa interval tested was a 136 metre completion which
flowed at a rate of 11,080 bbl/d. Oil flow rates from the above intervals were
restricted by a two-inch choke size. The aggregate rate of 44,240 bbl/d was
compiled using the Lower Shiranish, Upper Kometan and Qamchuqa intervals as
these were deemed by the Corporation to be more representative of previously
announced test results. Evaluation of these flow test results is ongoing.


The TT-10 well was drilled into the crest of the main Cretaceous formations in
the Taq Taq field, as identified on 3D seismic, where it encountered a gross oil
column of 530 metres. The TT-10 well was spudded by the Kurdistan-1 rig in
August and completed drilling in late December at a total depth of 2,247 metres.
Testing of the TT-10 well was delayed such that the well could be hooked up to
the early production system allowing for test oil to be monetised at a later
date. Interpretation of data acquired from the TT-10 well, including wireline
logging and core samples, confirmed the presence of a significant and extensive
fracture system in the tested formations as observed in the previous Cretaceous
appraisal wells.In addition, the log analysis performed indicates that matrix
porosity increases towards the centre of the field.

[leeson31] 18/3/2009 18:31

they hit 27.5 cad came off a bit, but lookin good... dow just rose heavily then, bodes well 4 tmrw...

[orvis] 18/3/2009 12:31

Taq Taq flow test results look amazing to me - will Toronto react this am?

[leeson31] 05/3/2009 07:10

its ceratinly overlooked Scottishfield!! A recovery in the oil price shoudl get the share price up a bit. huge spread on this, but, one your in, and into b/even or better, then its ok, its just that initial loss on entry..

cheers

[scottishfield] 04/3/2009 22:01

Tks leeson, I added today, great little share, could be exceptional going forward, considering the middle east connections. Very much overlooked imo, tks for the info etc & thread

[leeson31] 04/3/2009 21:34

Addax Petroleum Corporation
04 March 2009

?








Addax Petroleum announces RECORD results FOR 2008


* 41 per cent increase in Funds Flow From Operations to $1,850 million
* 63 per cent increase in Net Income to $784 million
* 8 per cent increase in Production to 136.5 Mbbl/d
* 20 per cent increase in Proved plus Probable Reserves to 536.7 MMbbl



Calgary, March 4, 2009 - /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the
"Corporation") (TSX:AXC and LSE:AXC), today announced its results for
the year ended December 31,
2008.The financial results are prepared in
accordance with Canadian GAAP and the reporting currency is
US dollars.


A conference call will be held for analysts and investors today Wednesday, March
4, 2009 at 11:00 a.m. Eastern Time / 4:00 p.m. London, U.K. Time. Full details
can be found at the end of this announcement.


CEO's Comment


Commenting today, Addax Petroleum's President and Chief Executive Officer,
Jean Claude Gandur, said: "I take great pleasure to report that Addax
Petroleum's 2008 performance has resulted in another year of record operational
performance, robust reserves growth and a significant increase in our
prospective oil resources. Despite a challenging environment in the fourth
quarter of 2008, Addax Petroleum achieved record production of 142.5 Mbbl/d in
the quarter and ended the year with a significant discovery at the Njaba
prospect. We advanced our early entrant position in the rapidly developing
Kurdistan Region of Iraq through the completion of a 30 Mbbl/d facility which is
expected to translate into first commercial oil production later this year. In
recognition of the current challenging environment, we have undertaken an
aggressive cost control program and are prudently managing our business to
protect our balance sheet and maintain ongoing liquidity. Addax Petroleum has
operated successfully in previous low oil price environments similar to the one
we are currently experiencing today and is positioning itself to do so again. I
would like to thank our employees, management, board of directors, business
partners and shareholders for their support and contribution to Addax
Petroleum's outstanding performance in 2008."


Selected 2008 Financial Highlights


The following table summarizes the selected financial highlights.


+---------------+--------+-------+--------+
| Selected | Year ended / |
| financial | as at December 31 |
| highlights | |
+---------------+-------------------------+
| $ | 2008 | 2007 | Change |
| million | | | |
| unless | | | |
| otherwise | | | |
| stated | | | |
+---------------+--------+-------+--------+
| Petroleum | 4,607 | 3,412 | 35% |
| sales | 94.38 | 72.94 | 29% |
| before | 48.7 | 46.8 | 4% |
| royalties | | | |
| Average | | | |
| crude oil | | | |
| sales | | | |
| price, | | | |
| $/bbl | | | |
| Sales | | | |
| volumes, | | | |
| MMbbl | | | |
+---------------+--------+-------+--------+
| | | | |
+---------------+--------+-------+--------+
| Funds | 1,850 | 1,313 | 41% |
| Flow | 784 | 482 | 63% |
| From | | | |
| Operations | | | |
| Net Income | | | |
+---------------+--------+-------+--------+
| | | | |
+---------------+--------+-------+--------+
| Weighted | 156 | 155 | 1% |
| average | 11.86 | 8.45 | 40% |
| common | 5.03 | 3.10 | 62% |
| shares | | | |
| outstanding | | | |
| (basic, | | | |
| millions) | | | |
| Funds Flow | | | |
| From | | | |
| Operations | | | |
| per share | | | |
| ($/basic | | | |
| share) | | | |
| Earnings | | | |
| per share | | | |
| ($/basic | | | |
| share) | | | |
+---------------+--------+-------+--------+
| | | | |
+---------------+--------+-------+--------+
| Weighted | 163 | 156 | 4% |
| average | 11.49 | 8.31 | 38% |
| common | 4.95 | 3.09 | 60% |
| shares | | | |
| outstanding | | | |
| (diluted, | | | |
| millions) | | | |
| Funds Flow | | | |
| From | | | |
| Operations | | | |
| per share | | | |
| ($/diluted | | | |
| share) | | | |
| Earnings | | | |
| per share | | | |
| ($/diluted | | | |
| share) | | | |
+---------------+--------+-------+--------+
| | | | |
+---------------+--------+-------+--------+
| Total | 5,317 | 3,847 | 38% |
| assets | 1,200 | 950 | 26% |
| Long-term | | | |
| debt, | | | |
| excluding | | | |
| convertible | | | |
| bonds | | | |
+---------------+--------+-------+--------+
| | | | |
+---------------+--------+-------+--------+
| Capital | 1,160 | 773 | 50% |
| Expenditures | 431 | 216 | 100% |
| - by Region | 56 | 83 | -33% |
| Nigeria | 47 | 16 | 194% |
| (excluding | 82 | 84 | -2% |
| deepwater) & | 1,776 | 1,172 | 52% |
| Cameroon | | | |
| Gabon | | | |
| Kurdistan | | | |
| Region of | | | |
| Iraq | | | |
| Deepwater | | | |
| Nigeria & | | | |
| JDZ | | | |
| Corporate, | | | |
| acquisitions, | | | |
| farm-in and | | | |
| license | | | |
| signature | | | |
| fees | | | |
| Total | | | |
+---------------+--------+-------+--------+
| | | | |
+---------------+--------+-------+--------+
| Capital | 1,376 | 822 | 67% |
| Expenditures | 318 | 266 | 20% |
| - by Type | 1,694 | 1,088 | 56% |
| Development | 82 | 84 | -2% |
| Exploration | 1,776 | 1,172 | 52% |
| & appraisal | | | |
| subtotal | | | |
| Corporate, | | | |
| acquisitions, | | | |
| farm-in and | | | |
| license | | | |
| signature | | | |
| fees | | | |
| Total | | | |
+---------------+--------+-------+--------+


* Petroleum sales before royalties in 2008 amounted to $4,607 million, an increase
of 35 per cent over petroleum sales before royalties of $3,412 million in 2007.
The increase in petroleum sales before royalties was primarily driven by a 29
per cent increase in average crude oil sales price in 2008 to $94.38 per barrel
(/bbl) as compared to $72.94/bbl realized in 2007 and an increase of 8 per cent
in the average gross working interest oil production. The Corporation
experienced a build up of crude oil inventory in the fourth quarter of
approximately 540 Mbbl (equivalent to approximately 5.9 Mbbl/d) as production
volumes exceeded sales volumes. This crude oil inventory is expected to decline
in the first half of 2009.
* Funds Flow From Operations for the fourth quarter of 2008 decreased 26 per cent
to $318 million ($2.03 per basic share) compared to $428 million ($2.75 per
basic share) in the fourth quarter of 2007. On an annual basis, Funds Flow From
Operations for 2008 increased 41 per cent to $1,850 million ($11.86 per basic
share) compared to $1,313 million ($8.45 per basic share) in 2007.
* Net Income for the fourth quarter of 2008 decreased 98 per cent to $3 million
($0.02 per basic share) compared to $180 million ($1.16 per basic share) in the
fourth quarter of 2007. On an annual basis, Net Income for 2008 increased 63 per
cent to $784 million ($5.03 per basic share) compared to $482 million ($3.10 per
basic share) in 2007.
* Capital expenditures, excluding corporate and acquisition costs, totaled $521
million in the fourth quarter of 2008 and were comprised of $406 million for
development and $115 million for exploration and appraisal activities. Capital
expenditures, excluding corporate and acquisition costs, increased by 56 per
cent to $1,694 million in 2008 from $1,088 million in 2007. Development capital
expenditures totaled $1,376 million in 2008, an increase of 67 per cent over
development capital expenditure of $822 million in 2007. Exploration and
appraisal capital expenditures totaled $318 million in 2008, a 20 per cent
increase over exploration and appraisal capital expenditures of $266 million in
2007.
* Corporate and acquisition costs associated with new business activities were $82
million in 2008 as compared to $84 million in 2007. New business activities
included the acquisition of four new exploration license areas for the
Corporation's property portfolio, the increase of the Corporation's working
interest in one exploration license area and the commencement of an integrated
gas utilization project in Nigeria.

* Bank debt increased in 2008 by $250 million to $1,200 million and is currently
drawn under two facilities that consist of a $1.6 billion senior secured
reducing revolving borrowing base facility (of which $1.3 billion can be drawn
as debt) and a $500 million senior unsecured revolving facility that was entered
into during the year.



Selected Operational Highlights


The following table summarizes selected operational information.
+----------------------------------------------+---------+--------+---------+
| Selected operational results | Year ended / |
| | as at December 31 |
+----------------------------------------------+----------------------------+
| | 2008 | 2007 | Change |
+----------------------------------------------+---------+--------+---------+
| Annual average gross working interest oil production (Mbbl/d) |
+---------------------------------------------------------------------------+
| Nigeria (offshore) | 100.7 | 97.1 | 4% |
| Nigeria (onshore) | 7.3 | 7.4 | -1% |
| Nigeria sub-total | 108.0 | 104.5 | 3% |
+----------------------------------------------+---------+--------+---------+
| | | | |
+----------------------------------------------+---------+--------+---------+
| Gabon (offshore) | 6.7 | 6.4 | 5% |
| Gabon (onshore) | 21.8 | 15.0 | 45% |
| Gabon sub-total | 28.5 | 21.4 | 33% |
+----------------------------------------------+---------+--------+---------+
| | | | |
+----------------------------------------------+---------+--------+---------+
| Total | 136.5 | 125.9 | 8% |
+----------------------------------------------+---------+--------+---------+
| |
+---------------------------------------------------------------------------+
| Prices, expenses and netbacks ($/bbl) |
+---------------------------------------------------------------------------+
| Average realized price | 94.38 | 72.94 | 29% |
| Operating expense | 8.53 | 6.70 | 27% |
| Operating netback | 68.42 | 53.70 | 27% |
+----------------------------------------------+---------+--------+---------+
| |
+---------------------------------------------------------------------------+
| Gross working interest oil reserves (MMbbl) |
+---------------------------------------------------------------------------+
| Proved | 214.2 | 233.3 | -8% |
| Proved plus Probable | 536.7 | 446.7 | 20% |
| Proved plus Probable plus | 738.4 | 580.3 | 27% |
| Possible | | | |
+----------------------------------------------+---------+--------+---------+
| |
+---------------------------------------------------------------------------+
| Gross working interest best estimate prospective oil resources (MMbbl) |
+---------------------------------------------------------------------------+
| Unrisked | 2,772 | 2,246 | 23% |
| Risked | 825 | 738 | 12% |
+----------------------------------------------+---------+--------+---------+
| |
+---------------------------------------------------------------------------+
| Gross working interest best estimate contingent gas resources |
+---------------------------------------------------------------------------+
| Gas (Bcf) | 2,820 | 2,415 | 17% |
| Associated gas liquids (MMbbl) | 83.5 | 77.2 | 8% |
+----------------------------------------------+---------+--------+---------+


* Average gross working interest oil production in 2008 was 136,450 bbl/d, an
increase of approximately 8 per cent over the 2007 average production of 125,940
bbl/d. Average oil production for 2008 included 107,980 bbl/d from Nigeria and
28,470 bbl/d from Gabon.
* Total gross working interest proved plus probable reserves, as evaluated in
accordance with National Instrument 51-101 by Netherland, Sewell &
Associates ("NSAI") as at December 31, 2008, increased by approximately 20 per
cent to 536.7 MMbbl from 446.7 MMbbl as at December 31, 2007. The Corporation
did not make reserves acquisitions or disposals during the year and the 2008
reserve additions arose primarily from the Corporation's operational activity,
including extensions and discoveries. Proved reserves decreased by 8 per cent in
the same period as NSAI has not assigned proved reserves to wells without
production test results. Addax Management elected not to test the Kita Marine
appraisal wells in 2008, where 34.0 MMbbl of proved plus probable (2P) reserves
were added during the year, given Addax Petroleum had previously tested the
initial discovery in 2007 and has adequate data to submit a Field Development
Plan to the Government. Similarly, 42.0 MMbbl of 2P reserves were added from the
Njaba well but there were no proved (1P) reserves booked due to the fact that
the well was drilled late in the year and had not been production tested within
the year. Management expects a portion of these reserves to be reclassified as
1P reserves through additional drilling in 2009.
* The Corporation's overall 2008 reserves replacement ratio was 281 per cent. The
reserves replacement ratio is calculated by dividing the gross working interest
2P reserve additions of 140.0 MMbbl (before deduction of 2008 production of
49.9 MMbbl) by the 2008 production.
* Development project highlights in 2008 include:

Nigeria
* drilled 12 successful new development wells offshore, 10 in OML123 and two in
OML126, all of which were placed on production during the year;
* drilled two successful new development wells onshore in OML124, all of which
were placed on production during the year;
* initial production from the Inagha field in OML123; and,
* ongoing full field development at the Adanga North Horst field in OML123 and at
the Okwori field in OML126.

Gabon
* drilled 23 development wells on the Corporation's onshore and offshore license
areas, of which 21 were placed on production during the year;
* ongoing surface facilities development at the onshore Maghena, Panthere NZE and
Awoun license areas;
* completed installation of the platform and pipeline from the offshore Ebouri
field to the Etame Marin floating production storage and offloading vessel; and,
* completed the extension of the Corporation's onshore export system, including a
new 38-kilometre, 12-inch pipeline which will allow for further increases in
production by availing of spare capacity through the Shell operated Rabi
station. The Corporation expects the expanded export system to be commissioned
in the second quarter of 2009.

Kurdistan Region of Iraq
* an early production system was installed and commissioned at Taq Taq allowing
production capacity of up to 30 Mbbl/d and intermittent sales were commenced in
the local market; and,
* environmental studies and front end engineering and design associated with an
export pipeline were completed and Addax Petroleum is currently investigating
long-lead items required for the construction of the export pipeline.

* Total gross working interest unrisked prospective oil resources increased by
approximately 23 per cent to 2,772 MMbbl as at December 31, 2008 from 2,246
MMbbl as at December 31, 2007. Risked prospective oil resources increased by
approximately 12 per cent to 825 MMbbl as at December 31, 2008 from 738 MMbbl as
at December 31, 2007.Of the unrisked prospective oil resources as at December
31, 2008, 1,359 MMbbl or 49 per cent relate to the Corporation's Deep Water Gulf
of Guinea portfolio, 1,030 MMbbl or 37 per cent to onshore Nigeria and shallow
water offshore Nigeria and Cameroon, 248 MMbbl or 9 per cent to Gabon,
predominantly offshore, and 136 MMbbl or 5 per cent to the Kurdistan Region of
Iraq.
* Total gross working interest best estimate contingent gas resources increased by
approximately 17 per cent to 2,820 Bcf as at December 31, 2008 from 2,415 Bcf as
at December 31, 2007. Best estimate liquids associated with contingent gas
resources increased by approximately 8 per cent to 83.5 MMbbl as at December 31,
2008 from 77.2 MMbbl as at December 31, 2007. The largest additions are in
OML137 where 411 Bcf and 8.7 MMbbl were added arising from the Corporation's
successful appraisal efforts during 2008.
* Average realized sales price for the fourth quarter of 2008 decreased 44 per
cent to $49.28/bbl compared to $88.46/bbl in the fourth quarter of 2007. The
decrease was primarily driven by a 38 per cent decrease in the average dated
Brent benchmark price in the fourth quarter of 2008 as compared to the fourth
quarter of 2007 and the timing of the crude oil liftings.
* Royalties as a percentage of sales increased in the fourth quarter of 2008
compared to the first nine months of 2008 primarily due to activities in Gabon.
Gabon offshore Royalty Oil as a percentage of revenues increased in the fourth
quarter of 2008 as Royalty Oil is determined in the production month, rather
than in the month sold. Inventory levels for Etame grew early in the quarter and
were sold later in the quarter while the average sales price had fallen.
* Operating netbacks in 2008 increased 27 per cent to $68.42/bbl compared to
$53.70/bbl in 2007. Unit operating expenses in 2008 increased to $8.53/bbl, an
increase of 27 per cent over the 2007 level of $6.70/bbl, due to cost inflation
for the provision of services, an increase in the number of well workovers and
security related costs in Nigeria, an increase in personnel related costs to
support the growing operations in Gabon and local currency appreciation relative
to the US dollar.



Selected Exploration and Appraisal Highlights
* Exploration and appraisal activity and highlights in 2008 include:

Gulf of Guinea Shallow Water (Nigeria and Cameroon)
* drilled a highly successful exploration well in OML124, onshore Nigeria, which
discovered the Njaba prospect. Significant quantities of oil were discovered for
which 42.0 MMbbl of probable reserves were booked at year end 2008. An appraisal
well was also drilled in the northern area of the Ossu field in OML124 that
expanded the areal extent of the field by proving the presence of oil north of a
saddle separating the main field from an independent block;
* drilled four successful appraisal wells in OML123, offshore Nigeria, that
appraised the Adanga, Kita Marine and Oron West fields. Notably, in March 2008,
the KTM-6 well encountered an aggregate gross oil column of 173 feet over four
zones and resulted in 34.0 MMbbl of 2P oil reserves being booked at year end
2008. During the fourth quarter of 2008, Addax Petroleum drilled the Adanga
North Graben prospect in OML123 and encountered gas;
* drilled two successful appraisal wells in OML137, offshore Nigeria, on the
Ofrima North discovery, one of which confirmed the western extension of the H42
oil reservoir and the other discovered 62 feet of oil and 92 feet of
liquids-rich gas in deeper horizons; and,
* drilled four exploration wells in the Ngosso and Iroko license areas offshore
Cameroon. At Ngosso, the Odiong and Tali exploration prospects were drilled
mid-2008, whereby the Tali sidetrack established a gross hydrocarbon column of
79 feet while the two Ngosso exploration wells were plugged and abandoned. The
Iroko exploration well encountered hydrocarbons in the main objective interval.

Gabon
* drilled two successful appraisal wells at the Ebouri field in the Etame Marin
license area, offshore Gabon, and commenced production in late January 2009;
* completed 2D seismic data acquisition over the Corporation's Remboué license
area and the northern part of the Epaemeno license area, both onshore Gabon;
and,
* drilled one exploration well on the Andok prospect in the fourth quarter of 2008
in the Maghena license area onshore Gabon where hydrocarbon shows were
encountered in the main objective interval and through an up-dip sidetrack.

Kurdistan Region of Iraq
* drilled and tested two cretaceous appraisal wells on the Taq Taq field (TT-08
and TT-09) with aggregate flow rates ranging from 16.2 Mbbl/d to 35.8 Mbbl/d;
* drilled and tested one Pila Spi appraisal well on the Taq Taq field (TT-11) with
a flow rate of 470 bbl/d from a gross oil column of 52 metres. The oil tested
from the Pila Spi is a much heavier oil than that from the cretaceous formations
and the Corporation believes that significantly higher rates can be achieved
with the installation of artificial lift; and,
* drilled one cretaceous appraisal well (TT-10) that will be tested in the first
quarter of 2009.

Gulf of Guinea Deep Water (Nigeria and JDZ)
* continued to conduct technical studies evaluating the exploration prospect
drilling locations of the Corporation's deep water licenses that contain working
interest unrisked prospective oil resources of 1,359 MMbbl (493 MMbbl risked).
The Corporation plans to drill its first high impact exploration well in the
Deep Water Gulf of Guinea in late 2009 at the Kina prospect in Block 4 of the
Joint Development Zone.Chevron Corp. has notified the Nigeria/Sao Tome Joint
Development Authority of its intent to move into the second exploration phase
for Block 1.



Selected New Business Highlights


* 2008 continued an active new business program for Addax Petroleum with the
addition of four new exploration license areas to the Corporation's property
portfolio and the increase of the Corporation's working interest in a deepwater
exploration license area. In addition, Addax Petroleum received Federal
Government of Nigeria approval for an integrated gas utilization initiative
which could lead to the development and monetization of the Corporation's
considerable gas resources in Nigeria.
* New business highlights in 2008 include:

Gulf of Guinea Shallow Water (Nigeria and Cameroon)
* the Corporation was awarded a 40 per cent interest in Oil Prospecting License
("OPL") 227, offshore Nigeria, subject to receipt of the formal deed of
assignment.The OPL227 license area covers approximately 851 km2 (210,300 gross
acres) and is located to the north-east of the Shell-operated OML79 license area
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;
* Addax Petroleum signed a Production Sharing Contract ("PSC") with the Republic
of Cameroon, relating to the Iroko exploration license area. Under the PSC,
Addax Petroleum acquired a 100 per cent interest in the Iroko license area and
is the operator.The Iroko license area covers an area of 16 km2 (3,900 gross
acres) and lies approximately 30 kilometres offshore Cameroon adjacent to the
Corporation's OML123 license area in Nigeria; and,
* Addax Petroleum announced, together with its partners Chrome Oil Services
Limited and Korea Gas Corporation, that it has received the approval from the
Federal Government of Nigeria for its proposed implementation of an integrated
gas utilization project in Nigeria. The integrated gas utilization project is
intended to include the exploration and development of gas fields in Nigeria,
including Addax Petroleum's OML137, and to secure the gas reserves necessary to
commercialize a new liquefied natural gas production facility of up to 10
million tonnes per annum. It is also expected to provide domestic power
generation capacity along with the provision of feedstock for the development of
petrochemical facilities. The project is still in the preliminary stages of
development.

Gabon
* Addax Petroleum acquired an additional 18 per cent working interest in, and
operatorship of, the Iris Marin license area where the Corporation now holds a
51.33 per cent working interest. The Iris Marin license area is an exploration
permit of approximately 403 km² (99,600 gross acres) in the southern Gabon
basin; and,
* Addax Petroleum acquired a 68.75 per cent interest in, and operatorship of, the
Gryphon Marin license area. The Gryphon Marin license area covers a gross area
of 9,750 km2 (2,409,200 gross acres) and is immediately north of Addax
Petroleum's Etame Marin license, offshore Gabon. The Corporation plans to
commence exploration activities in Gryphon Marin with the spudding of two wells
during the first half of 2009.

Kurdistan Region of Iraq
* Addax Petroleum acquired a 33.33 per cent interest in the Sangaw North PSC,
effective September 2008. The Sangaw North license area contains a large surface
anticline, a number of surface oil seeps and is located approximately 80
kilometres southeast of Addax Petroleum's Taq Taq license. During the fourth
quarter of 2008, an assignment to the Korean National Oil Corporation was
completed which reduced Addax Petroleum's interest to 26.67 per cent. The
Corporation completed the acquisition of 2D seismic on the license area in
fourth quarter of 2008 and plans to drill an exploration well within the
exploration period.

Joint Development Zone ("JDZ")
* Addax Petroleum was awarded an additional 7.2 per cent participating interest in
Block 4 of the JDZ as a result of an arbitration award by a panel of the London
Court of International Arbitration. The award increased Addax Petroleum's
interest in Block 4 to 45.5 per cent.



Dividends


The Corporation declared and paid aggregate dividends in 2008 of CDN$0.40 per
share. A dividend of CDN$0.10 per share was declared on March 3, 2009, payable
on April 2, 2009 to shareholders of record on March 19, 2009. In accordance
with Canada Revenue Agency Guidelines, dividends paid by the Corporation during
the period are eligible dividends.


Recent Developments


In January 2009, the Corporation announced a significant discovery from the
Njaba 2 well in the eastern part of the OML124 license area in Nigeria. The
discovery resulted in Addax Petroleum booking 42.0 MMbbl of probable reserves
from this well as at December 31, 2008.


In January 2009, the Corporation commenced production from the Ebouri field in
the Etame Marin license area, offshore Gabon.


In February 2009, the operator completed drilling the North Etame exploration
well in the Corporation's Etame Marin license area offshore Gabon. The well
encountered lower than anticipated hydrocarbons, was water bearing and is
expected to be plugged and abandoned.

2009 Outlook & Capital Budget


For 2009, Addax Petroleum has budgeted total capital expenditures of
approximately $1.6 billion (excluding acquisitions), which are expected to
result in total production averaging between 140 Mbbl/d to 145 Mbbl/d from its
Nigeria and Gabon operations. This budget is consistent with the Corporation's
philosophy of funding capital expenditures from internally generated cash flow
and has been determined using the average Brent Crude price of $60/bbl. Should
the prevailing Brent Crude price continue to be below $60/bbl for the balance of
2009, Addax Petroleum intends, and has the flexibility, to reduce its capital
expenditures such that total capital expenditures continue to be funded by
internally generated cash flow. An average Brent Crude price of $40/bbl would
result in a reduction of capital expenditures to approximately $1 billion and
the associated reduced drilling and facilities expenditures would result in
Addax Petroleum's total production for 2009 averaging between 132 Mbbl/d and 137
Mbbl/d.


Regulatory Filings


This announcement coincides with the filing with the Canadian and U.K.
securities regulatory authorities of Addax Petroleum's Audited Consolidated
Financial Statements for the year ended December 31, 2008 and related
Management's Discussion and Analysis, as well as Addax Petroleum's Annual
Information Form including the Corporation's Statement of Reserves Data and
Other Information, Report of the Independent Qualified Reserves Evaluator and
Report of Management and Directors. Copies of these documents may be obtained
via www.sedar.com, www.londonstockexchange.com and the Corporation's website,
www.addaxpetroleum.com.


These documents can be accessed at the following links


Audited Consolidated Financial Statements for the year ended December 31,
2008




Management's Discussion &
Analysis


f


Annual Information
Form




CEO & CFO Responsibility Statements





Analyst Conference Call


Financial analysts are invited to participate in a conference call today
Wednesday, March, 4, 2009 at 11:00 a.m. Eastern Time / 4:00 p.m. London,
U.K. time with Mr. Jean Claude Gandur, President and Chief Executive Officer,
Mr. Michael Ebsary, Chief Financial Officer and Mr. James Pearce, Chief
Operating Officer. The media and shareholders may participate on a listen only
basis. To participate in the conference call, please dial one of the following:


Toronto:416 644 3420
Toll-free (Canada and the US):1 800 731 5319
Toll-free (UK): 00 800 2288 3501
Toll-free (Switzerland):00 800 2288 3501


A replay of the call will be available at [phone] or [phone],
passcode 21296229# until Wednesday, March 18, 2009.


Capital Markets Day


Addax Petroleum will host a Capital Markets Day presentation to financial
analysts and investors on Monday, March 23, 2009 in London, UK and Tuesday,
March 24, 2008 in Toronto, Canada. The Corporation's senior management team will
discuss the Corporation's most recent operating results and expectations
regarding future operations. A live webcast of the presentations will be made
available and the Capital Markets Day presentation materials will be available
on the Corporation's website at www.addaxpetroleum.com prior to the event.
Interested attendees are encouraged to contact any of the individuals listed at
the end of this announcement in order to register in advance.


Reader Advisory Regarding Forward-Looking Information


Certain statements contained in this news release, including statements related
to future capital expenditures, business strategy and goals, future commodity
prices, reserves and resources estimates, drilling plans, development plans and
schedules, future seismic activity, production levels and sources of growth
thereof, results of exploration activities and dates that areas may come
on-stream, royalties payable, contingent liabilities 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 and natural gas;
* oil and gas reserve 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 rights;
* 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 commissions.


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.


Non-GAAP Measures


Addax Petroleum defines "Funds Flow From Operations" or "FFFO" as net cash from
operating activities before changes in non-cash working capital. Management
believes that in addition to net income, FFFO is a useful measure as it
demonstrates Addax Petroleum's ability to generate the cash necessary to repay
debt or fund future growth through capital investment. Addax Petroleum also
assesses its performance utilizing Operating Netbacks which it defines as the
per barrel pre-tax profit margin associated with the production and sale of
crude oil and is calculated as the average realized sales price less royalties
and operating expenses, on a per barrel basis. FFFO and Operating Netback are
not recognized measures under Canadian GAAP. Readers are cautioned that these
measures should not be construed as an alternative to net income or cash flow
from operating activities determined in accordance with Canadian GAAP or as an
indication of Addax Petroleum's performance. Addax Petroleum's method of
calculating these measures may differ from other companies and accordingly, it
may not be comparable to measures used by other companies.

[leeson31] 03/3/2009 07:58

looks like the markets will opne positively...

[scottishfield] 02/3/2009 16:26

Good buying op tomorrow morning

[leeson31] 02/2/2009 07:54

aye, i have a wee wedge full.....

[g3a] 02/2/2009 07:49

Any of you guys actually holding this?

Very tight spread, the tightest I've seen it since I've been watching for the last few months.

Oil price still seems to be on the wane though?

[mariachi] 02/2/2009 02:14

KNOC Goes Solo in Iraq Oil Project

By Kim Tong-hyung
Staff Reporter

The state-run Korea National Oil Corporation (KNOC) is confident it can go it alone in a massive oil development project in Iraq, after talks with Korean companies over forming a consortium fell through, industry sources said Sunday.

KNOC signed a contract with the Kurdish Regional Government last September on exploration and production sharing for eight oil blocks in northern Iraq, five located near Irbil and the other three near Sulaymaniyah.

The eight blocks have estimated oil reserves of 7.2 billion barrels, and the deal gives the Koreans the rights over 1.9 billion barrels, KNOC said.

The Koreans, in exchange, promised to spend around $2.1 billion to build power facilities, water services, sewage systems and other infrastructure.

However, KNOC had struggled to reach an agreement with builders such as Hyundai Engineering and Construction, Ssangyong Construction and Doosan Construction over how to balance the financing of the infrastructure project.

According to industry sources, KNOC will be part of a consortium of Korean firms, which also includes SK Energy, in developing the Bazian oil block.

However, KNOC is now planning to go it alone in the remaining seven oil blocks, although it will remain open to talks about consortiums down the road.

KNOC is about to announce plans to initiate a $600 million project, which is the first part of the aforementioned infrastructure project, officials said.

KNOC officials were unavailable for comment.

Under the deal with the Kurdish government, KNOC has acquired an 80 percent stake in Qush Tappa; a 60 percent stake in Sangaw South; 20 percent in Bazian; 20 percent in Sangaw North; and 15 percent each in K15, K16, K17 and K21 blocks in Hawler.

----

AXC has an interest in South Sangaw.

[leeson31] 28/1/2009 19:48

aye, addax is a bit like that, a rare breed you might say :p

chartwise - we've gotta be at lows, surely. A rising oil price imho should get the addax share price upto circa 1500p, then 2000p in due course.

Cheers