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Addax Petroleum Announces 2007 Year-End Reserves, Resources And 2007 Average Oil Production

Calgary, Alberta, January 16th, 2008 –

• 2007 Reserve Replacement Ratio of 302 per cent and Reserve Life Index of 9.7 years
• Year end 2007 Proved plus Probable oil reserves increase 26 per cent to 446.7 MMbbl
• Year end 2007 unrisked prospective oil resources of 2,246 MMbbl (risked 738 MMbbl)
• Year end 2007 contingent gas resources of 2,415 Bcf and 77.2 MMbbl of liquids

Addax Petroleum Corporation (“Addax Petroleum” or the “Corporation”) (TSX:AXC and LSE:AXC), today announces that its Board of Directors has accepted a reserve report prepared by Netherland, Sewell & Associates Inc., independent oil and natural gas reservoir engineers (“NSAI” and the “NSAI Report”), that evaluates all of the Corporation’s petroleum reserves and certain resources. As at December 31, 2007, NSAI estimates gross working interest proved plus probable reserves for the Corporation to be 446.7 MMbbl, representing an increase of approximately 26 per cent over the quantities estimated by NSAI at the prior year-end. In addition, the Corporation produced an average of 125,940 bbl/d of oil during 2007, representing an increase of approximately 40 per cent over 2006 and close to the 2007 target of 127,000 bbl/day. Average oil production for 2007 included 104,510 bbl/d from Nigeria and 21,430 bbl/d from Gabon.

This announcement coincides with the filing of a material change report by the Corporation which can be accessed through the Corporation’s website at www.addaxpetroleum.com and through www.sedar.com. The reserve estimates in this release are based on forecast prices and costs. Except as otherwise indicated, references to “$” and to “dollars” refer to the currency of the United States of America.

CEO’s Comment

Commenting today, Addax Petroleum’s President and Chief Executive Officer, Jean Claude Gandur, said: “I am pleased to report very strong operational results for 2007. Our production performance was outstanding, delivering 40 per cent growth over 2006. Strong production growth, combined with a favourable oil price environment, has allowed us to continue to invest in the growth of our reserves and resources base. I believe we have invested well and have delivered strong reserves growth in each of our operations areas, as laid out in our reserves disclosure. Growth in production and reserves has been complimented and balanced with increases in our prospective oil resources and contingent gas resources, providing a platform for continued future growth. I believe our 2007 success in growing our production and adding to our reserves and resources base represents a major accomplishment that Addax Petroleum has achieved for its shareholders and stakeholders.”

The NSAI Report

The NSAI 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 and in accordance with National Instrument 51 101. In addition to oil reserves on the Corporation’s license areas, the NSAI Report includes prospective oil resources for the Corporation’s license areas in West Africa and contingent gas resources for the Corporation’s Nigeria license areas.

Selected Oil Reserves Highlights

Highlights of oil reserves reported in the NSAI Report and the Corporation’s 2007 production, with comparatives to 2006 results, are as follows:

• Total gross working interest proved plus probable reserves increased by approximately 26 per cent to 446.7 MMbbl as at December 31, 2007 from 353.7 MMbbl as at December 31, 2006. The Corporation did not make reserves acquisitions or disposals in 2007 and the 2007 reserves additions arise primarily from the Corporation’s operational activity, including extensions and discoveries, and favourable economic factors.
• In Nigeria, gross working interest proved plus probable reserves increased by approximately 22 per cent to 262.7 MMbbl as at December 31, 2007 from 215.4 MMbbl as at December 31, 2006 and oil production for 2007 averaged 104,510 bbl/d.
• In Gabon, gross working interest proved plus probable reserves increased by approximately 11 per cent to 109.4 MMbbl as at December 31, 2007 from 98.2 MMbbl as at December 31, 2006 and oil production for 2007 averaged 21,430 bbl/d.
• In the Kurdistan Region of Iraq, gross working interest proved plus probable reserves increased by approximately 86 per cent to 74.6 MMbbl as at December 31, 2007 from 40.1 MMbbl as at December 31, 2006, all of which are contained in the Taq Taq field. There was no oil production from the Taq Taq field during 2007.
• The Corporation’s overall 2007 reserves replacement ratio was 302 per cent. The reserves replacement ratio is calculated by dividing the gross working interest proved plus probable reserve additions of 139.0 MMbbl (before deduction of 2007 production of 46.0 MMbbl) by the 2007 production.
• The Corporation’s 2007 reserve life index, based on proved plus probable reserves as at December 31, 2007 and average 2007 oil production, has decreased slightly to 9.7 years from 10.8 in 2006. The 2007 reserve life index is calculated by dividing the gross working interest proved plus probable reserves of 446.7 MMbbl as at December 31, 2007 by the 2007 production of 46.0 MMbbl. The Corporation’s oil production for December, 2007 averaged 143,600 bbl/day and included 117,200 bbl/day in Nigeria and 26,400 bbl/day in Gabon.
• Total gross working interest proved plus probable plus possible reserves have increased by 21 per cent to 580.3 MMbbl as at December 31, 2006 from 480.4 MMbbl as at December 31, 2006.

The following table summarises selected reserves information as at December 31, 2007:

The following table reconciles changes in gross working interest proved plus probable reserves:

Selected Prospective Oil Resources Highlights

Highlights of prospective oil resources reported in the NSAI Report, with comparatives to 2006 results, are as follows:

• Prospective oil resources were reported for the majority of the Corporation’s license areas in West Africa, including the recently acquired JDZ Block 1. Prospective oil resources were not reported for the Taq Taq license area in the Kurdistan Region of Iraq and the majority of the Corporation’s license areas onshore Gabon. In each instance, data collection and evaluation at year-end 2007 were insufficiently advanced to identify prospective resources.
• Total gross working interest best estimate unrisked prospective oil resources were 2,246 MMbbl as at December 31, 2007. Risked prospective oil resources increased by approximately 10 per cent to 738 MMbbl as at December 31, 2007 from 670 MMbbl as at December 31, 2006.
• Of the year-end 2007 risked prospective oil resources, 476 MMbbl or 64 per cent relate to the Corporation’s Deep Water Gulf of Guinea portfolio, 210 MMbbl or 28 per cent to onshore Nigeria and shallow water offshore Nigeria and Cameroon, and 51 MMbbl or 8 per cent to Gabon, predominantly offshore.

The following table summarises selected prospective oil resources information as at December 31, 2007:

Totals may not add because of rounding

Selected Contingent Gas Resources Highlights

Highlights of contingent gas resources reported in the NSAI Report, with comparatives to 2006 results, are as follows:

• Contingent gas resources reported are limited to the Corporation’s producing license areas in the shallow water and onshore license areas in Nigeria only. 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 Corporation is presently formulating commercial development proposals these contingent gas resources.
• Total gross working interest best estimate contingent gas resources increased by approximately 71 per cent to 2,415 Bcf as at December 31, 2007 from 1,412 Bcf as at December 31, 2006. Best estimate liquids associated with contingent gas resources increased by approximately 106 per cent to 77.2 MMbbl as at December 31, 2007 from 37.4 MMbbl as at December 31, 2006.
• The largest additions are in OML137 where 926 Bcf and 25.3 MMbbl were added arising from the Corporation’s successful exploration efforts during 2007.

The following table summarises selected contingent gas resources information as at December 31, 2007, including associated gas liquids quantities:

¹ after deductions for plant fuel and extraction of gas liquids
² includes LPG and C5+

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.

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” , “would” 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, environmental matters, government approvals and completion of current negotiations. 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.

For additional information, please contact:

Mr. Patrick Spollen
Investor Relations
Tel.: +41 (0) 22 702 95 47
patrick.spollen@addaxpetroleum.com

Mr. Craig Kelly
Investor Relations
Tel.: +41 (0) 22 702 95 68
craig.kelly@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 80 11
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