Addax Petroleum Share Discussion Threads

[zengas] 13/9/2007 18:58

Leeson -

Should see some analyst coverage etc.

Still very cheap and i don't think too many have noticed it yet.

The current and growing 140,000 bopd could be substantially boosted over the coming months.

Acquistions ($1.6b available).
Taq Taq.
Ramp up of production from current producing assets.
Development of non producing assets.

[leeson31] 13/9/2007 18:38

www.afren.com has OPERATIONS, and all projects with detaisl to refer to for reference.

thanks

[leeson31] 13/9/2007 18:37

Hi Zengas, you knwo that its been reported that AFren is "an addax in the making" ? Fox davies have a report on them.

Heres my nav figures...
Afren
P2 Reserves. guestimates. 25 aug 07

Okoro Setu WI50% ; P2 32Mbo * $4 (average of $3 to $5 for industry) = $128m
devided by 267m shares = 47.9 cents = 24pence (50 % WI = 12pence)

Ogedeh 50% WI ; 5 to 15 mbo recoverable so I'll use just P2 10mbo
10mbo * $4 = $40m / 267m shares = 15cents = 7.5p
50% WI = 3.75p

OFA 32.5% WI stated as 150mbo, I'll use P2 at 100mbo * $4 = $400m
$400m / 267m shares = $1.50 = 75pence 32.5% WI = 25 pence

Eremor 50% WI D1 + D3 reservoirs Ive used P2 20mbo ( upto 30mbo per reservoir so I've used a lower figure to be conservative for the conined two reservoirs) so, 20mbo * $4 = $80m / 267m shares = 30cents = 15pence so 50% WI = 7.5p

Congo Brazaville - La Noumbi 14% WI 50 to 75mbo as stated, so i'll use P2 50mbo. 50mbo * $4 = $200m / 267m shares = 75cents = 37.5pence so 14% WI = 5.25p


Gabon

-Themis Martin (TM) 8 prospects and 12.86% WI I've used P2 10mbo * $4 = $40m / 267m shares = 15cents = 7.5pence so 12.86% WI = 0.96pence lets call its 1pence.

-Iris martin (IM) 12.86% WI Ive used same as TM, same figures, so value = 1p

-Ibekelia (I) 20% WI Ive use same figures as TM and I but 205 WI = 1.5pence


Angola Cabinda Block B - 5% WI (heads of agreement) Very well know area for big reserves in next adjacent block. Ive used ....... P2 100mbo so, 100mbo * $4 = $400m / 267m shares = $1.49 = 75pence and 5% WI = 3.75p

So,

Okoro Setu = 12p
Ogedeh = 3.75p
Ofa = 25p
Eremor = 7.5p
Conga Braz = 5.25p
Gabon TM = 1p
Gabon IM = 1p
Gabon Ibek = 1.5p
Angola Bl B = 3.75p

Total = 60.75p


Cash USD100million (aug 07)/ 267m shares = 37cents = 18.7 pence.

Total projects + cash value = 60.75p + 18.7 pence = 79.45p

So were worth at least 79.45p.

Now, lets look at Obo -1

Im just going to Use the rumoured 1bill barrels oil. * $4 = $4billion / 267m shares = $14.98 = £7.49 our WI = 4.4% so 4.4% WI = 32.9p

Which added to the above 79.45p figure comes to £1.12 (mcap would be £299million)

The income of funds and New Acquisitions that we know will be forthcoming as per the last rns on 21 aug 07 means there will be further value to add.


if you get time, could you agre them ? or if necassry, disagree them ?

much appreciated.

Leeson

[leeson31] 13/9/2007 18:21

cheers Zengas

Roll on 2400p

L€€$on

[leeson31] 13/9/2007 18:16

Zengas, ive used your post on a premium thread, i hope u do nt mind mate.

i agree this should be circa 2400p

cheers ears

[leeson31] 13/9/2007 18:13

ZENGAS - 13 Sep'07 - 17:52 - 42 of 42


Production NOW exceeding 140,000 bls day beating the 2007 year end target which was forecasted to be between 127k - 133k bopd.

Net backs Q1 2007 $42.07/b after Royalties and lifting costs based on oil price at $57.86/b.

Q2 Oil revenues were $753m (oil price average $68.21/b) on 123,000 bopd.

Revenues should now be running at circa $3.8b per year on current 140,000 bopd and growing. (over $10m per day !!!).

$1.6b available for acquisitions.
$1.2b capital development budget on current projects.

Possible recoverable 1.3 B barrels of NEW unrisked reserves (670m risked) + 1.6 tcf of discovered gas (not booked) in addition to current booked reserves.

Additionally for 2008 possible full field development in .
45% of the (> 48degree oil) Taq Taq field under the Kurdistan regional government.

TT04 - 3 intervals total 29,790 bopd.
TT05 - 2 intervals total 26,550 bopd.
TT06 - 3 intervals total 18,900 bopd (well may have poss formation damage).
TT07 - 3 intervals total 37,560 bopd.

Total 4 Taq Taq wells = 112,770 bopd. (45% = 50,700 bopd from tests).

TT08 spudded mid July.
TT09 also in progress.

Market Cap = £2.785 billion and 140,000 bopd.

Trading at a substantial discount to Tullow Oil = £3.97 billion market cap and current 70,000 boepd. Revenues are less than one third of what Addax has.
www.yuuguu.com/share
Both companies have similar oil/gas reserves. Tullow 490 mboe P2 at June 2007. Addax 354 mbo (no gas) P2 at December 2006 with significant upgrade to come.
Addax gas (264 mboe) is not booked due to no sales agreement.

Addax should be trading at a minimum of what Tullow is now and which should be a minimum of 45% higher than where the share price currently is - ie £17.90 to £26.00.

Huge war chest for ($1.6b) acquistions and massive income stream + serious potential in Taq Taq not yet factored plus $1.2b for development spend on a large range of both producing and non producing assets.

[zengas] 13/9/2007 17:52

Production NOW exceeding 140,000 bls day beating the 2007 year end target which was forecasted to be between 127k - 133k bopd.

Net backs Q1 2007 $42.07/b after Royalties and lifting costs based on oil price at $57.86/b.

Q2 Oil revenues were $753m (oil price average $68.21/b) on 123,000 bopd.

Revenues should now be running at circa $3.8b per year on current 140,000 bopd and growing. (over $10m per day !!!).

$1.6b available for acquisitions.
$1.2b capital development budget on current projects.

Possible recoverable 1.3 B barrels of NEW unrisked reserves (670m risked) and 'ONLY' from currently studied prospects + 1.6 tcf of discovered gas (not booked) in addition to current booked reserves.

Additionally for 2008 possible full field development.
45% of the (> 48degree oil) Taq Taq field under the Kurdistan regional government.

TT04 - 3 intervals total 29,790 bopd.
TT05 - 2 intervals total 26,550 bopd.
TT06 - 3 intervals total 18,900 bopd (well may have poss formation damage).
TT07 - 3 intervals total 37,560 bopd.

Total 4 Taq Taq wells = 112,770 bopd. (45% = 50,700 bopd from tests).

TT08 spudded mid July.
TT09 also in progress.

Market Cap = £2.785 billion and 140,000 bopd.

Trading at a substantial discount to Tullow Oil = £3.97 billion market cap and current 70,000 boepd. Revenues are less than one third of what Addax has.

Both companies have similar oil/gas reserves. Tullow 490 mboe P2 at June 2007. Addax 354 mbo (no gas) P2 at December 2006 with significant upgrade to come.
Addax gas (264 mboe) is not booked due to no sales agreement.

Addax should be trading at a minimum of what Tullow is now and which should be a minimum of 45% higher than where the share price currently is - ie £17.90 to £26.00.

Huge war chest for ($1.6b) acquistions and massive income stream + serious potential in Taq Taq not yet factored plus $1.2b for development spend on a large range of both producing and non producing assets.

[leeson31] 13/9/2007 13:31

i dont mind paying circa 8 quid per gallon of petrol, just as long as my oil stocks reflect the oil price

:-)

is quite happily buy a 1 litre vehicle lol

[pixi] 13/9/2007 13:21

The price of New-York-listed light sweet crude oil soared to $79.91 a barrel in trading today, breaking the previous record of £78.77 set last month.

The Scotsman, 13th September 2007

Some analysts see oil at $100 per barrel by the end of this year.

For a rough calc: 140,000 bbls per day x $70 per barrel = $9,800,000.00 per day from Nigeria and Gabon only, ignoring the Iraqi discoveries.

[pixi] 11/9/2007 12:15

My buy of 500 at 1699p. What I like about Addax is that it is already producing oil from various countries and has progressively increased production:

Selected Operational Highlights

* Average working interest gross oil production in the second quarter of
2007 was 123.0 thousand barrels per day (Mbbl/d), an increase of 54 per cent
over second quarter 2006 average oil production of 79.9 Mbbl/d. Nigeria
production increased by 30 percent to 104.1 Mbbl/d compared to 79.9 Mbbl/d
in the corresponding period in 2006. Gabon contributed 18.9 Mbbl/d in the
second quarter of 2007 (no contribution in the second quarter of 2006).
Total oil production during the quarter was 11.2 MMbbl, as compared to oil
sales volumes of 11.0 MMbbl during the quarter.
* Continued exploration success in OML137 offshore Nigeria, where oil and
gas discoveries were made at Ofrima North and, at the start of the third
quarter, Udele West, and step-out appraisal success at the Taq Taq field in
the Kurdistan Region of Iraq.
* Capital expenditures, excluding new business acquisition considerations,
farm-in fees and license signature fees, increased by 52 per cent to $261
million in the second quarter of 2007, up from $172 million in the second
quarter of 2006. Development capital expenditures totaled $174 million in
the second quarter of 2007, an increase of 28 per cent over second quarter
2006 development capital expenditure of $136 million. Exploration and
appraisal capital expenditures increased to $87 million in the second
quarter of 2007 from $36 million in the second quarter of 2006.
* Throughout the second quarter of 2007, the Corporation directly operated
six drilling rigs: three offshore Nigeria, one onshore Nigeria and two
onshore Gabon, and through its joint venture company, Taq Taq Operating
Company, one further drilling rig in the Kurdistan Region of Iraq.

When the Iraqi HCL is approved to attract further foreign investment, Addax will be well placed to capitalise.

[kiwi3] 06/9/2007 16:32

this stock doesn't seem to have too many followers over here.....considering it is producing 123,000 barrels a day already and that is without the taq taq field i believe....over 600,000 shares traded so far in canada

[leeson31] 06/9/2007 16:25

60p mark up too

[kiwi3] 06/9/2007 16:23

great rns out this morning again...tt-07 flows at 37560 barrels a day.....great news

[kiwi3] 03/9/2007 16:31

ok....thanks....did anyone see the article in investors chronicle last week...believe it was tipped as one of their buys of the week...

[peetle] 03/9/2007 16:29

Yes - labor (sic) day. It's a US and Canadian holiday.

[kiwi3] 03/9/2007 16:13

is the canadian market closed today....does anyone know..

[leeson31] 03/9/2007 10:19

it would be rude not to.

:-)

[peetle] 03/9/2007 10:15

Thanks Leeson. I (and a horde of others) rather hope PET will be doing the same sort of thing shortly - and having a share price in the £ teens range, from the current £1.30-odd to boot.

And apologies for blatant, OT ramping...

[leeson31] 03/9/2007 10:09

nice 1 peetle

leeson

[kiwi3] 02/9/2007 19:42

evidently tipped in investors chronicle last week....can anyone update us on the article....thanks in advance

[leeson31] 29/8/2007 13:30

RNS Number:6647B
Addax Petroleum Corporation
07 August 2007



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
AUSTRALIA OR JAPAN

Addax Petroleum announces SECOND QUARTER 2007 results

* Funds Flow From Operations increased by 46 per cent and net income
increased by 74 per cent
* Working interest gross oil production increased by 54 per cent, to an
average of 123,000 barrels per day
* Continued exploration success offshore Nigeria and step-out appraisal
success at Taq Taq

Calgary, August 7, 2007 - /CNW/ - Addax Petroleum Corporation ("Addax Petroleum"
or the "Corporation") (TSX:AXC and LSE:AXC) today announced its financial and
operational results for the quarter ended June 30, 2007. The financial results
are prepared in accordance with Canadian GAAP and the reporting currency is US
dollars.

This announcement coincides with the filing with the Canadian and UK securities
regulatory authorities of Addax Petroleum's Financial Statements for the quarter
ended June 30, 2007 and related Management's Discussion and Analysis. Copies of
these documents may be obtained via www.sedar.com, www.londonstockexchange.com
and the Corporation's website, www.addaxpetroleum.com.

A conference call will be held for analysts and investors at 11:00 a.m. Eastern
Time / 4:00 p.m. London, U.K. time today, Tuesday August, 7. 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: "Once again we have delivered strong and solid quarterly
results. I am delighted to report further production growth which, together with
good cost discipline, enables us to continue delivering strong financial and
operational performance. We believe that we have excellent reinvestment
opportunities, demonstrated in the quarter by our exploration successes offshore
Nigeria and step-out appraisal success at Taq Taq. We continue to build a
platform for growth for Addax Petroleum. During the quarter, we increased our
capital base through a well-received convertible bond issue and completed our
secondary listing on the London Stock Exchange which I expect to be an important
contributor to our objective of maximising shareholder value."

Selected Financial Highlights

* Petroleum sales before royalties in the second quarter of 2007 amounted
to $753 million, an increase of 44 per cent over petroleum sales before
royalties of $523 million in the second quarter of 2006. The growth in
petroleum sales before royalties arose predominantly from increased
petroleum sales volumes as the average crude oil sales price increased
slightly by 1 per cent to $68.21 per barrel (/bbl) as compared to $67.85/bbl
realized in the corresponding period in 2006.
* Net income in the second quarter of 2007 was $101 million, an increase
of 74 per cent over net income of $58 million in the second quarter of 2006.
Net income per share increased by 59 per cent to $0.65 per share (basic) in
the second quarter of 2007 compared to $0.41 per share (basic) in the
corresponding period in 2006.
* Funds Flow From Operations for the second quarter of 2007 increased 46
per cent to $287 million compared to $196 million for the corresponding
period in 2006. Funds Flow From Operations per share increased by 32 per
cent to $1.85 per share (basic) in the second quarter of 2007 compared to
$1.40 per share (basic) in the corresponding quarter in 2006.
* In May, the Corporation successfully issued $300 million of senior
unsecured convertible bonds due in 2012.
* Also in May, the Corporation was introduced to the Official List and to
trading on the Main Market of the London Stock Exchange.

The following tables summarize the selected second quarter and first half
financial highlights.

------------------------------ ------------ -------
Selected second quarter financial highlights Quarter ended June 30
$ million unless otherwise stated 2007 2006 Change
------------------------------ ------ ------- -------
Petroleum sales before royalties 753 523 44%
Average crude oil sales price, $/bbl 68.21 67.85 1%
Net income 101 58 74%
Earnings per share, $/share (basic) 0.65 0.41 59%
Average shares outstanding (basic), million 155 140 11%
------------------------------ ------ ------- -------
Funds Flow From Operations 287 196 46%
Funds Flow From Operations per share (basic),
$/share 1.85 1.40 32%
------------------------------ ------ ------- -------

------------------------------ ------------ -------
Selected first half financial highlights Half Year ended June 30
$ million unless otherwise stated 2007 2006 Change
------------------------------ ------ ------- -------
Petroleum sales before royalties 1,380 917 50%
Average crude oil sales price, $/bbl 63.09 63.95 (1%)
Net income 180 114 58%
Earnings per share, $/share (basic) 1.16 0.85 36%
Average shares outstanding (basic), million 155 134 16%
------------------------------ ------ ------- -------
Funds Flow From Operations 550 370 49%
Funds Flow From Operations per share (basic),
$/share 3.55 2.76 29%
------------------------------ ------ ------- -------


Selected Operational Highlights

* Average working interest gross oil production in the second quarter of
2007 was 123.0 thousand barrels per day (Mbbl/d), an increase of 54 per cent
over second quarter 2006 average oil production of 79.9 Mbbl/d. Nigeria
production increased by 30 percent to 104.1 Mbbl/d compared to 79.9 Mbbl/d
in the corresponding period in 2006. Gabon contributed 18.9 Mbbl/d in the
second quarter of 2007 (no contribution in the second quarter of 2006).
Total oil production during the quarter was 11.2 MMbbl, as compared to oil
sales volumes of 11.0 MMbbl during the quarter.
* Continued exploration success in OML137 offshore Nigeria, where oil and
gas discoveries were made at Ofrima North and, at the start of the third
quarter, Udele West, and step-out appraisal success at the Taq Taq field in
the Kurdistan Region of Iraq.
* Capital expenditures, excluding new business acquisition considerations,
farm-in fees and license signature fees, increased by 52 per cent to $261
million in the second quarter of 2007, up from $172 million in the second
quarter of 2006. Development capital expenditures totaled $174 million in
the second quarter of 2007, an increase of 28 per cent over second quarter
2006 development capital expenditure of $136 million. Exploration and
appraisal capital expenditures increased to $87 million in the second
quarter of 2007 from $36 million in the second quarter of 2006.
* Throughout the second quarter of 2007, the Corporation directly operated
six drilling rigs: three offshore Nigeria, one onshore Nigeria and two
onshore Gabon, and through its joint venture company, Taq Taq Operating
Company, one further drilling rig in the Kurdistan Region of Iraq.
* Development project highlights in the second quarter of 2007 include:

Nigeria

- four new development wells were drilled, all on OML123 and all four
new wells were placed on production during the quarter;

- surface facilities development was ongoing at the Oron and Adanga
fields on OML123.

Gabon

- two development wells were drilled on the Corporation's onshore
license areas;

- a total of three new wells were placed on production, all onshore,
comprising the two development wells drilled in the quarter and one
previously drilled well;

- surface facilities development was ongoing at the onshore Maghena and
offshore Etame license areas.

* Exploration and appraisal activity and highlights in the second quarter
of 2007 include:

Gulf of Guinea Shallow Water (Nigeria and Cameroon)

- two exploration wells were drilled offshore Nigeria in the quarter, both
on OML137 resulting in the two discoveries, Ofrima North and Udele West,
the latter at the start of the third quarter;

- as reported on July 12, 2007, the Ofrima-2 exploration well, drilled on
the Ofrima North structure, discovered a 140 feet gross oil bearing
interval which, based on static pressure data measurements, is
anticipated to be a light oil of approximately 39 degrees API, and three
gas bearing intervals with individual gross gas columns of 29, 43 and 158
feet. A second exploration well, Udele-2, discovered seven gas bearing
intervals with individual gross gas columns of between 41 and 113 feet,
542 feet in aggregate. Both discovery wells were suspended and the
Corporation intends to re-enter each well to carry out flow tests over
selected intervals later in the year.

- in Cameroon, the Corporation recently contracted for a drilling rig to
start exploration drilling on the Ngosso license area later in 2007.

Gabon

- the Corporation has started a 3D development and appraisal seismic survey
over the southern portion of the Maghena license area. The Corporation is
working to extend seismic acquisition to cover the southern portion of
the adjacent Awoun license area, operated by Shell Gabon and in which the
Corporation has a 40 per cent working interest. The Corporation
anticipates that the 3D survey, once acquired, processed and interpreted,
will provide valuable information in the further development, appraisal
and exploration of this area which contains the Obangue, Koula and Damier
fields;

- as reported on April 10, 2007, the Corporation acquired a 50 per cent
interest in and operatorship of the Epaemeno exploration license area,
which lies immediately north of the Corporation's Maghena and Awoun
license areas onshore Gabon. The Epaemeno acquisition is subject to the
consent of the government of Gabon.

Gulf of Guinea Deep Water (Nigeria and JDZ)

- technical studies are ongoing to evaluate exploration prospect
drilling locations.

Kurdistan Region of Iraq

- as reported on June 4, 2007, a successful step-out appraisal well, TT-06,
was drilled and tested at an aggregate rate of 18.9 Mbbl/d from three
separate intervals. The TT-06 well was drilled approximately 3.6
kilometres north-northwest of the crestally-located TT-05 well;

- during the second quarter, the TT-07 well was spudded approximately 2.2
kilometres southeast of the TT-05 well location. Presently, the TT-07
well is being prepared for flow testing, the results of which will be
announced following the completion of testing;

- recently, the TT-08 well was spudded approximately 1.1 kilometers north
of the TT-05 well location with the objective of appraising the flank of
the field;

- a 2D seismic survey commenced over the Kewa Chermila area and was
recently concluded, following which a 3D seismic survey was started over
the Taq Taq field.

* Operating netbacks in the second quarter of 2007 increased by 4 per cent
to $51.17/bbl compared to $49.17/bbl in the second quarter of 2006. Unit
operating expenses in the second quarter of 2007 decreased by 18 per cent to
$5.75/bbl compared to the second quarter 2006 level of $6.99/bbl, reflecting
unit cost improvements on the upgraded replacement FPSO on OML123 offshore
Nigeria.

The following tables summarize the selected second quarter and first half
operational information.

------------------------------ ------------ -------
Selected second quarter operational highlights Quarter ended June 30
2007 2006 Change
------------------------------ ------------ -------
Annual average working interest gross oil production (Mbbl/d)
Nigeria (offshore) 96.6 76.1 27%
Nigeria (onshore) 7.5 3.8 97%
Nigeria sub-total 104.1 79.9 30%
Gabon (offshore) 6.4 -- --
Gabon (onshore) 12.5 -- --
Gabon sub-total 18.9 -- --
Total 123.0 79.9 54%

Prices, expenses and netbacks ($/bbl)
------------------------------ ------ ------- -------
Average realized price 68.21 67.85 1%
Operating expense 5.75 6.99 (18%)
Operating netback 51.17 49.17 4%
------------------------------ ------ ------- -------

------------------------------ ------------ -------
Selected first half operational highlights Half year ended June 30
2007 2006 Change
------------------------------ ------------ -------
Annual average working interest gross oil production (Mbbl/d)
Nigeria (offshore) 94.4 76.6 23%
Nigeria (onshore) 6.6 3.5 89%
Nigeria sub-total 101.0 80.1 26%
Gabon (offshore) 6.4 -- --
Gabon (onshore) 12.2 -- --
Gabon sub-total 18.6 -- --
Total 119.6 80.1 49%

Prices, expenses and netbacks ($/bbl)
------------------------------ ------ ------- -------
Average realized price 63.09 63.95 (1%)
Operating expense 6.72 7.05 (5%)
Operating netback 46.75 45.51 3%
------------------------------ ------ ------- -------

Dividend

The Board of Directors of the Corporation has declared a dividend of CDN$0.05
per share for the second quarter of 2007. The dividend is payable on September
13, 2007 to shareholders of record on August 30, 2007. A dividend of CDN$0.05
per share was declared and paid in the second quarter of 2007 relating to the
first quarter of 2007. In accordance with Canada Revenue Agency Guidelines,
dividends paid by the Corporation during the period are eligible dividends.

AOG Shareholding in Addax Petroleum Corporation

As reported on July 20 and July 31 last, the Corporation's largest shareholder,
the Addax & Oryx Group Ltd. ("AOG"), has reduced its shareholding in Addax
Petroleum to approximately 55.5 million shares, representing approximately 36
per cent of the Corporation's issued shares. The reduction in AOG's shareholding
in the Corporation took place when some shareholders in AOG exchanged their
shares in AOG for shares in the Corporation already held by AOG. The beneficial
interests of the Corporation's executive management in Addax Petroleum remain
unaltered as a result of the reduction of AOG's shareholding.

Outlook

The Corporation's outlook for 2007 is in line with guidance provided to date.
Addax Petroleum expects average working interest gross oil production to
approximate 127 to 133 Mbbl/d from its Nigeria and Gabon operations in 2007.
Capital expenditure in 2007 is forecast to total $1,150 million, a decrease from
$1,178 million, with $340 million allocated for exploration and $810 million for
development expenditures. Forecast capital expenditures are allocated as
follows: $750 million is forecast to be spent on Nigerian producing assets, $30
million to be spent on Nigerian non-producing assets, and $240 million to be
spent on Gabon producing assets, $90 million on Taq Taq and $40 million on other
assets, primarily on JDZ and Cameroon.

Please see below links to the associated Interim Management Discussion &
Analysis and Consolidated Financial Statements:

Interim MD&A:


Consolidated Financial Statements:


Legal Notice - Forward-Looking Statements

Certain statements in this press 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" or other similar wording. Forward-looking information
includes, but is not limited to, reference to business strategy and goals,
future capital and other expenditures, reserves and resources estimates,
drilling plans, construction and repair activities, 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, royalties payable, financing and capital activities, contingent
liabilities, and environmental matters. 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; 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
ability to market and sell natural gas under its production sharing contracts;
the effects of weather and climate conditions; 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 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 statement.

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 profit margin associated with the production and sale of crude oil
and is calculated as the funds flow from operations per barrel sold, prior to
corporate charges. 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 determined in accordance with Canadian GAAP or
as an indication of Addax Petroleum's performance. Addax Petroleum's method of
calculating this measure may differ from other companies and accordingly, it may
not be comparable to measures used by other companies

[dadair] 28/8/2007 19:50

dont have my plimsoles with me . sry
:-)

[surfer2] 25/8/2007 22:33

p/e anyone?