ERHC Energy Inc (ERHE)

[RUBY1100]

Addax announces results of exploration potential study
Tuesday May 22, 7:44 am ET


/NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA OR JAPAN/
Unrisked prospective oil resources estimated to be 1,307 MMbbl, approximately 3.7 times the Corporation's Proved plus Probable reserves
CALGARY, May 22 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX: AXC - News), today announces the results of a prospective oil and contingent gas resources report prepared by Netherland, Sewell & Associates Inc., independent oil and natural gas reservoir engineers ("NSAI" and the "NSAI Resources Report"), issued in connection with the Corporation's previously announced intended secondary listing on the London Stock Exchange. The NSAI Resource Report evaluates the Corporation's identified prospective oil resources and contingent gas resources. The NSAI Resource Report is contained within the UK listing prospectus which is available at www.addaxpetroleum.com.
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As at December 31, 2006, NSAI estimates working interest best estimate unrisked gross prospective oil resources for the Corporation to be 1,307 MMbbl and the corresponding risked estimate to be 670 MMbbl. In addition, NSAI estimates working interest best estimate gross contingent gas resources for the Corporation's properties to be 1,583 Bcf. The prospective oil resources and contingent gas resources are in addition to the Corporation's proved, probable and possible reserves as reported by the Corporation on January 18, 2007.

CEO's Comment

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "The independent assessment by NSAI of our prospective oil and contingent gas resources clearly demonstrates the upside potential of Addax Petroleum. We have built and continue to build a true E&P company that has a balance of both significant cash flow generating production and high impact exploration potential. We have also assembled the capabilities required, including a high quality exploration team, for us to develop and realize on the substantial upside identified in the NSAI Resource Report."

The NSAI Resources Report was prepared for the Corporation at the direction of Addax Petroleum's Technical and Reserves Committee, using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") and in accordance with National Instrument 51-101. In this context, the prospective oil resources are defined as those quantities of oil estimated to be contained in accumulations yet to be discovered while the contingent gas resources are defined as those quantities of gas estimated to be potentially recoverable from known accumulations but are not currently economic. All prospective oil resource estimates referred to in this press release denote, if discovered, recoverable quantities reported as the most likely or best estimates and limited to the Corporation's working interest after giving effect to government back-in rights, where applicable. All contingent gas resource estimates referred to in this press release relate to the Corporation's working interest in its producing Nigeria license areas and denote discovered recoverable quantities prior to giving effect to government back-in rights, if any.

Selected Prospective Oil Resources Highlights

In undertaking its assessment of prospective oil resources, NSAI relied upon the prospect, lead and work-in-progress inventory developed by Addax Petroleum as at December 31, 2006. At that time, the Corporation's prospect and lead inventory was more developed in some license areas and less so in others. The Corporation considers its exploration prospect inventory to be well developed for its shallow water and onshore Nigeria license areas, to be partially developed for its Cameroon and deepwater Gulf of Guinea license areas, to be predominantly undeveloped in its license areas in Gabon and yet to be developed the Kurdistan Region of Iraq. Development of a complete exploration prospect inventory for each license area includes the acquisition, processing, interpretation of seismic or geological mapping of prospects.

The following table summarises selected prospective oil resources information as at December 31, 2006:


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Best Estimate
Number of Overall Prospective Oil Resources
prospects Chance of -------------------------
Area reviewed Success Unrisked Risked
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acres % MMbbl MMbbl
Shallow water
-------------
and onshore
-----------
Nigeria
-------
OML123 90,700 29 61% 179 110
OML124 74,100 2 44% 36 16
OML126 178,300 3 39% 94 37
OML137 209,800 4 36% 137 50
Okwok 9,000 - - - -
Sub-total 561,900 38 48% 446 214

Shallow water
-------------
Cameroon
--------
Ngosso 70,300 9 70% 37 26
Sub-total 70,300 9 70% 37 26

Deep Water
----------
Gulf of
-------
Guinea
------
JDZ (2,3 &
4) 130,300 18 79% 286 225
OPL291,
Nigeria 230,600 2 36% 456 164
Sub-total 360,900 20 52% 742 389

Gabon
-----
Onshore 317,200 3 35% 17 6
Offshore 973,300 12 55% 65 36
Sub-total 1,290,500 15 51% 82 42

Kurdistan
---------
Region of
---------
Iraq
----
Taq Taq 105,800 - - - -
Sub-total 105,800 - - - -
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Total 2,389,400 82 51% 1,307 670
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Since December 31, 2006, Addax Petroleum has undertaken exploration activity on its OML123 and OML137 license areas, offshore Nigeria. On OML123, the Corporation successfully explored and appraised the Antan prospect, whereas on OML137, the Corporation is currently drilling the Ofrima North prospect and has encountered gas and oil zones.
Selected Contingent Gas Resource Highlights

In respect of contingent gas resources, the NSAI Resource Report is limited to the Corporation's producing license areas in the shallow water and onshore license areas in Nigeria. They are categorized as contingent because the commerciality of the gas resources and the Corporation's rights to produce the gas resources have yet to be established.

The following table summarises selected contingent gas resources information as at December 31, 2006, including associated gas liquids quantities:


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Contingent Gas Resources(1) Associated Gas Liquids(2)
(Bcf) (MMbbl)
-------------------------------------------------------------------------
OML123 974 14.7
OML124 362 22.7
OML126 69 0.0
Okwok 7 0.0
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Total 1,412 37.4
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(1) includes deductions for plant fuel and extraction of gas liquids
(2) includes LPG and C5+

The Corporation is presently in negotiation with Nigerian government authorities for the development of the contingent gas resources from the Corporation's license areas.
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 8,800 bbl/d for 1998 to an average of approximately 116,000 bbl/d for the first quarter of 2007. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.

Important Information

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, exchange or transfer any securities of Addax Petroleum. The value of Addax Petroleum's common shares can go down as well as up and past performance cannot be relied on as a guide to future performance.

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.

For further information

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]