Addax PR Spells Out JDZ Deals

Here's the latest from Addax Petroleum, our partner in Blocks 3 and 4 of the Nigeria-Sao Tome and Principe Joint Development Zone:

Press Release Source: Addax Petroleum

Addax Petroleum acquires interests in highly prospective JDZ exploration Blocks
Wednesday March 15, 8:30 am ET

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA OR JAPAN/

CALGARY, March 15 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum") announces that it has together with its co-venturers signed a Production Sharing Contract ("PSC") with the Nigeria/Sao Tome Joint Development Authority ("JDA") relating to Block 4 of the Nigeria/Sao Tome Joint Development Zone ("JDZ") and is now entitled to a 33.3 per cent participating interest pursuant to a Participation Agreement with ERHC Energy Incorporated ("ERHC") relating to Block 4. Addax Petroleum will be the operator of this Block. Addax Petroleum has also signed today a further PSC with the JDA relating to Block 3 of the JDZ and is now entitled to a 15% participating interest under the Joint Operating Agreement ("JOA") relating to this Block where a subsidiary of Anadarko Petroleum Corporation is the operator.

In commenting on the signing of the PSCs Jean Claude Gandur, Chief Executive Officer of Addax Petroleum said, "I am delighted that Addax Petroleum has achieved prominent equity positions and operatorship in this highly prospective exploration area. We are excited about the potential these assets offer our company and its shareholders."

Block 4 - Addax Petroleum: 33.3 per cent and Operator

Addax Petroleum's Block 4 entitlement is pursuant to:

- Block 4 PSC signed today with the JDA under which Addax Petroleum is obligated to pay a signature bonus of US$23.4 million and its share of a minimum committed work program of three exploration wells or a minimum expenditure of US$53 million, and

- a Participation Agreement with ERHC entered into in November 2005 under which Addax Petroleum became entitled to a 33.3 per cent participating interest for an obligation to pay US$18 million and a commitment to carry the costs associated with an ERHC interest of 17.7 per cent in Block 4.

Block 4 covers a gross area of 857 square kilometers (211,773 acres) and the water depth ranges from approximately 1,800 to 2,200 meters. Seismic data acquired over Block 4 is presently being analyzed to delineate potential drilling locations.

Block 3 - Addax Petroleum: 15 per cent

Addax Petroleum's Block 3 entitlement is pursuant to:

- Block 3 PSC signed today with the JDA under which Addax Petroleum is obligated to pay a signature bonus of US$2 million and its share of a minimum committed work program of one exploration well or a minimum expenditure of US$30 million, and

- a Participation Agreement with ERHC entered into in February 2006 under which Addax Petroleum acquired the 15 per cent participating interest for an obligation to pay US$7.5 million and a commitment to carry the costs associated with an ERHC interest of 10 per cent in Block 3.

Block 3 covers a gross area of 666 square kilometers (164,569 acres) and the water depth ranges from approximately 1,700 to 2,100 meters. Seismic data acquired over Block 3 is presently being analyzed to delineate potential drilling locations.