ERHC Energy Inc (ERHE)

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Addax Petroleum Announces First Quarter 2007 Results
Tuesday May 8, 8:00 am ET


First Quarter Funds Flow From Operations increases by 50 per cent
/NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA OR JAPAN/
CALGARY, May 8 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC - News), an international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East, today announced its results for the quarter ended March 31, 2007. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars.
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This announcement coincides with the filing with the Canadian securities regulatory authorities of Addax Petroleum's Financial Statements for the quarter ended March 31, 2007 and related Management's Discussion and Analysis. Copies of these documents may be obtained via www.sedar.com and the Corporation's website, www.addaxpetroleum.com.

CEO's Comment

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "We have had a very good start to 2007. Our first quarter financial performance has been strong, based on solid operating netbacks and operational performance that is delivering growth in line with our expectations. In addition to operational delivery, our exploration and appraisal results have been encouraging. Our efforts to demonstrate and realize value in our exploration portfolio, including on currently producing license areas, at Taq Taq and the deep water Gulf of Guinea, are progressing well. I am also very pleased to have recently concluded our first new business acquisition of 2007, which was in Gabon and complements our existing business there. I look forward to concluding our secondary listing on the London Stock Exchange in the near future, which I believe will be an important contribution to our objectives of maximising value for our shareholders."


Selected Financial Highlights

- Petroleum sales before royalties in the first quarter of 2007
amounted to $627 million, an increase of 59 per cent over petroleum
sales before royalties of $394 million in the first quarter of 2006.
The growth in petroleum sales before royalties arose from increased
petroleum production and sales, partially offset by a 3 per cent
decline in average crude oil sales price to $57.86 per barrel (/bbl)
as compared to $59.41/bbl realized in the corresponding period in
2006.

- Net income in the first quarter of 2007 was $79 million
($0.51 per share), an increase of 39 per cent over net income of
$57 million ($0.44 per share) in the first quarter of 2006.

- Funds Flow From Operations for the first quarter of 2007 increased
50 per cent to $263 million ($1.70 per share) compared to
$175 million ($1.36 per share) for the corresponding period in 2006.

- The Corporation's $1.0 billion acquisition facility was refinanced
with a $1.5 billion five-year term facility, subsequently
successfully syndicated and increased to $1.6 billion.

- The Corporation was added to the Standard & Poor ("S&P")/TSX
Composite Index and the S&P/TSX Capped Energy Index, effective
March 19, 2007.

The following table summarizes the selected financial highlights.

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Selected financial highlights Quarter ended
March 31
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$ million unless otherwise stated 2007 2006 Change
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Petroleum sales before royalties 627 394 59%
Average crude oil sales price, $/bbl 57.86 59.41 (3%)
Net income 79 57 39%

Earnings per share, $/share 0.51 0.44 16%
Average shares outstanding (basic & diluted),
million 155 128 21%

Funds Flow From Operations 263 175 50%
Funds Flow From Operations per share, $/share 1.70 1.36 25%
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Selected Operational Highlights

- Average working interest gross oil production in the first quarter of
2007 was 116 thousand barrels per day (Mbbl/d), an increase of
45 per cent over first quarter 2006 average oil production of
80 Mbbl/d. Gabon contributed 18 Mbbl/d in the first quarter of 2007
(no contribution in the first quarter of 2006) and Nigeria production
increased by 22 percent to 98 Mbbl/d compared to 80 Mbbl/d in the
corresponding period in 2006.

- Capital expenditures increased by 20% to $216 million in the first
quarter of 2007, up from $180 million in the first quarter of 2006,
excluding new business acquisition considerations, farm-in fees and
license signature fees. Development capital expenditures totaled
$146 million in the first quarter of 2007, a decrease of 16 per cent
over first quarter 2006 development capital expenditure of
$173 million. Exploration and appraisal capital expenditures
increased to $70 million in the first quarter of 2007 from $7 million
in the first quarter of 2006.

- Throughout the first quarter of 2007, the Corporation operated seven
drilling rigs: three offshore Nigeria, one onshore Nigeria, two
onshore Gabon - of which one was subsequently released - and one in
the Kurdistan Region of Iraq. A second full-time land rig was
contracted into Gabon at the end of the first quarter and is
currently being assembled in readiness to start drilling during the
current quarter.

- Development project highlights in the first quarter of 2007 include:

Nigeria

- development drilling activity comprised drilling six new
development wells, three on OML123, one on OML126 and two on
OML124;
- of these six new wells, the OML123 and OML124 wells were placed on
production while the new OML126 development well is awaiting tie-
back;
- ongoing surface facilities development at the Oron and Adanga
fields on OML123.

Gabon

- three development wells were drilled on the Corporation's onshore
license areas;
- a total of five new production wells were placed on production
comprising two of the three new wells drilled in the quarter, a
further two previously drilled onshore wells and one development
well in the non-operated offshore license area;
- ongoing surface facilities development at the Maghena and Etame
license areas.

- Exploration and appraisal activity and highlights in the first
quarter of 2007 include:

Gulf of Guinea Shallow Water (Nigeria and Cameroon)

- five exploration and appraisal wells were drilled offshore Nigeria
in the quarter, three on OML123 and two on OML126, resulting in
the discovery and successful appraisal of a new accumulation,
demonstrating extensions in two producing fields, and one
unsuccessful exploration and appraisal well;
- in OML123, the Antan-1X exploration well discovered a new
accumulation which encountered three oil-bearing reservoir
intervals with approximately 104 feet of aggregated net pay. One
of the three reservoir intervals was tested and flowed at a rate
of approximately 470 bbl/d of 15 degrees API oil. The true flow
potential of the interval was not reached because of sand control
measures implemented during the test. The Antan discovery was
successfully appraised by the Antan-2X well, a down-dip step-out
well approximately 0.8 kilometers from the Antan-1X well, which
encountered approximately 41 feet of net oil pay in aggregate; the
well confirmed the oil water contact in one of the Antan-1X well
intervals and discovered oil in two deeper intervals that were not
recorded by the Antan-1X well. The Antan-2X well was not tested;
- successful field extension appraisal wells were drilled on the
Ebughu and Okwori fields in OML123 and OML126, respectively.
Subsequently, three development wells have been drilled, two of
which are on production and one awaiting tie back.
- the fifth exploration and appraisal well, on the Nda West prospect
in OML126, was unsuccessful;
- the Corporation relinquished 50 per cent of the OPL225 exploration
license area pursuant to the terms and conditions of the relevant
production sharing contract. OPL225 was subsequently renamed as
OML137;
- in Cameroon, there has been no field or drilling activity. The
Corporation plans to start exploration drilling on the Ngosso
license area later in 2007 and drilling rig selection is on-going;

Gabon

- one successful exploration and appraisal well was drilled on the
previously discovered but undeveloped onshore Autour field. The
well is presently suspended, awaiting flow testing;
- the Corporation, under the terms of the Panthere NZE license area
production sharing contract, relinquished the Mokabou and Pomarin
areas and retained the Autour area.

Gulf of Guinea Deep Water (Nigeria and JDZ)

- technical studies are ongoing to evaluate exploration prospect
drilling locations;
- as reported on March 6, 2007, the Corporation has contracted the
Aban Abraham, a deep water drillship, to be available as early as
the second quarter of 2008 in the Corporation's deep water license
areas.

Kurdistan Region of Iraq

- as reported on March 1, 2007, the TT-05 well tested at an
aggregate rate of 26.6 Mbbl/d from two separate intervals;
- the TT-06 well was spudded approximately 3.6 kilometres north-
northwest of the TT-05 and presently the TT-06 well is being
prepared for flow testing, the results of which will be announced
following the completion of testing;
- recently, the TT-07 well was spudded approximately 2.2 kilometres
southeast of the TT-05 well location.

- Operating netbacks in the first quarter of 2007 increased by
2 per cent to $42.05/bbl compared to $41.24/bbl in the first quarter
of 2006. Unit operating expenses increased to $7.84/bbl, an increase
of 10 per cent over the first quarter 2006 level of $7.13/bbl. Unit
operating costs in the first quarter of 2007 reflect the relatively
high current unit operating cost associated with the Corporation's
operations in Gabon.

The following table summarizes selected operational information.
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Selected operational highlights Quarter ended
March 31
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2007 2006 Change
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Annual average working interest
gross oil production (Mbbl/d)
Nigeria (offshore) 92.1 77.1 19%
Nigeria (onshore) 5.8 3.3 76%
Nigeria sub-total 97.9 80.4 22%
Gabon (offshore) 6.3 - -
Gabon (onshore) 12.0 - -
Gabon sub-total 18.3 - -
Total 116.1 80.4 45%

Prices, expenses and netbacks ($/bbl)
Average realized price 57.86 59.41 (3%)
Operating expense 7.84 7.13 10%
Operating netback 42.05 41.24 2%
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Dividend
The Board of Directors of the Corporation has declared a dividend of CDN$0.05 per share for the first quarter of 2007. The dividend is payable on June 14, 2007 to shareholders of record on May 31, 2007. A dividend of CDN$0.05 per share was declared and paid in the first quarter of 2007 relating to the fourth quarter of 2006.

Recent Developments

Since the end of the first quarter, the Corporation has made a number of announcements, including:


- On April 10, the Corporation announced the acquisition of a
50 per cent interest in and operatorship of the Epaemeno exploration
license area, onshore Gabon. The Epaemeno license area lies
immediately north of the Corporation's Maghena and Awoun license
areas; and
- On April 22, the Corporation announced its intention to undertake a
secondary listing of its shares on the London Stock Exchange.

Outlook
The Corporation's outlook for 2007 is in line with guidance provided to date. Addax Petroleum expects annual average working interest gross oil production to approximate 127 to 133 Mbbl/d from its Nigeria and Gabon operations.

The Corporation will host a management presentation to financial analysts on May 29, 2007 in London and intends to provide further guidance for 2007 and future years at that time.

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'' 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 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.

Analyst Conference Call

Financial analysts are invited to participate in a conference call today Tuesday, May, 8 at 11:00 a.m. Eastern 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:


To listen to the conference call, please call one of the following:
Toronto: 416 644 3415
Toll-free (Canada and the U.S): 1 800 731 5319
Toll-free (U.K.): 00 800 0000 2288
Toll-free (Switzerland): 00 800 0022 8228


A replay of the call will be available at [phone] or [phone], passcode 21227718 (followed by the number sign) until Tuesday, May 22, 2007.
For further information

Mr. Michael Ebsary, Chief Financial Officer, Tel.: [phone], [e-mail]
Mr. Patrick Spollen, Investor Relations, Tel.: [phone], [e-mail]
Mr. Craig Kelly, Investor Relations, Tel.: [phone], [e-mail]
Mr. Mac Penney, Press Relations, Tel.: [phone], [e-mail]
Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: [phone], [e-mail]