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Addax Petroleum announces successful oil and gas appraisal offshore Nigeria

Thursday May 1, 8:39 am ET

http://biz.yahoo.com/cnw/080501/addax_oil_appraisal.html?.v=1

Successful appraisal in OML137 extends Ofrima North discovery

TORONTO, May 1 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC) announced today the successful appraisal of the Ofrima North discovery in OML137, offshore Nigeria.


Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "Our continued exploration success on OML137 is tremendous for Addax Petroleum. We have already booked a considerable amount of oil reserves for Ofrima North at the end of 2007 and we believe that the most recent discoveries give us the critical mass required to develop a successful new standalone oil production hub.

In addition, the further dry and liquids-rich gas discoveries continue to substantiate the potential of an integrated oil, liquids and gas development with significant future gas exports from OML137."


The Corporation has recently completed appraisal drilling in the West and Main fault blocks of the Ofrima North discovery with the drilling of the Ofrima-3 and Ofrima-3A wells. As previously announced on July 6, 2007, Addax Petroleum discovered Ofrima North with the Ofrima-2 well, which was drilled into the Main fault block.

The Ofrima-2 well encountered a 170 feet gross oil bearing interval in the H42 reservoir and three gas bearing intervals with individual gross gas columns of 29, 43 and 158 feet at shallower and deeper depths relative to the oil bearing interval.

The Ofrima-3 well was drilled 1.5 kilometers to the west of the Ofrima-2 well in the West fault block. Although the H42 reservoir was water-bearing in the Ofrima-3 well, the well encountered three hydrocarbon intervals in deeper reservoir intervals hitherto undrilled at Ofrima North.

The three intervals are a gross hydrocarbon column of 72 feet comprising 30 feet of light oil overlain by 42 feet of rich gas, a gross liquids-rich gas column of 50 feet and a gross light oil column of 32 feet. These intervals were not flow tested but wireline log and static pressure data indicate the presence of light oil and liquids-rich gas in reservoirs of good quality.

Immediately thereafter, Addax Petroleum drilled the Ofrima-3A well, successfully appraising the H42 oil reservoir in the Main fault block. The Ofrima-3A well confirmed, within the Main fault block, the western continuity of the H42 oil reservoir and a common oil water contact with the Ofrima-2 well, located approximately 1 kilometer east from the Ofrima-3A well.

The Corporation believes that the combination of oil discoveries at Ofrima North are sufficient to provide for a standalone development with an FPSO and subsea tiebacks and intend to work closely with relevant Nigerian government agencies on plans for an expeditious development with potential production as early as late 2009. The Corporation also plans additional exploration and appraisal drilling at Ofrima North and the surrounding area.

The Ofrima-3 and Ofrima-3A wells were drilled using Saipem's Scarabeo-3 semi-submersible drilling rig in water depths of approximately 75 metres. Following the Ofrima North appraisal campaign the Scarabeo-3 returned to the Okwori and Nda fields' area to commence the 2008 development drilling campaign on those fields.

Ofrima North lies in OML137, is located approximately 80 kilometers west of Addax Petroleum's Okwori and Nda fields and approximately 15 kilometers south from the Agip-operated Agbara field. In addition, OML137 lies approximately 50 kilometers south of the Nigeria shoreline where the Nigeria LNG terminal and planned Brass LNG terminal are located.

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 126,000 bbl/d for 2007. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.