Addax Petroleum Announces Acquisition In Kurdistan Region Of Iraq

CALGARY, Canada, October 9 /PRNewswire/ --

- 33.33 Per Cent Interest in Sangaw North Production Sharing Contract

Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX:AXC and LSE:AXC), today announces that it has acquired a 33.33 per cent interest in the Sangaw North Production Sharing Contract ("PSC"). The Sangaw North license area is operated by Sterling Energy plc ("Sterling") and is located approximately 80 kilometers southeast of the Corporation's Taq Taq field.

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "We are pleased to expand our activities in the Kurdistan Region of Iraq to include the highly prospective Sangaw North license area. Given our successful drilling campaign at Taq Taq, we intend to assist our partner to expedite exploration drilling. We believe that exploration success at Sangaw North would offer attractive synergies with the development of Taq Taq for the benefit of all the people of Iraq and our shareholders."

The Sangaw North PSC covers a gross area of approximately 121,600 acres (492 km(2)). Petroleum exploration activity to date includes field studies and the acquisition of 310 km of 2D seismic which is expected to be completed in November of this year. The Sangaw North license area contains a large surface anticline, a number of surface oil seeps and the operator is targeting to spud an exploration well in mid-2009.

The Sangaw North PSC is subject to an assignment to the Korean National Oil Corporation which, when completed, will reduce the Corporation's interest to 26.67 per cent. In addition, the Kurdistan Regional Government has the right to require that at a future date a government nominated entity is assigned 25 per cent which, if exercised, will further reduce the Corporation's interest to 20 per cent.

Under the terms of the acquisition, the consideration from Addax Petroleum comprises the reimbursement of Sterling's past costs as well as funding the seismic campaign and the drilling of the first exploration well. This reimbursement is funded from the Corporation's existing financing facilities and the future costs will be included in the Corporation's 2009 capital budget which is expected to be funded entirely from the Corporation's funds flow from operations. The Corporation continues to have substantial funding capacity within its existing financing facilities.

About Addax Petroleum

Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on 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 136,000 bbl/d for the first half of 2008. Further information about Addax Petroleum is available at http://www.sedar.com, http://www.londonstockexchange.com or the Corporation's website, http://www.addaxpetroleum.com.

Legal Notice - Forward-Looking Statements

Forward-looking information includes, but is not limited to, exploration drilling plans for Sangaw North, completion of an acquisition agreement with the Korean National Oil Corporation, KRG back-in rights, reference to business strategy and goals, future capital and other expenditures, existing and future financial capacity, the submission of development plans, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, and government approvals. 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: 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; 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. Craig Kelly, Investor Relations, Tel.: +41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Mr. Chad O'Hare, Investor Relations, Tel.: +41(0)22-702-94-10, chad.o'hare@addaxpetroleum.com; Ms. Marie-Gabrielle Cajoly, Press Relations, Tel.: +41(0)22-702-94-44, marie-gabrielle.cajoly@addaxpetroleum.com; Mr. Nick Cowling, Press Relations, Tel.: +1-416-934-8011, nick.cowling@cossette.com; Mr. James Henderson, Press Relations, Tel.: +44(0)20-7743-6673, james.henderson@pelhampr.com; Mr. Alisdair Haythornthwaite, Press Relations, Tel.: +44(0)20-7743-6676 alisdair.haythornthwaite@pelhampr.com

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