- Funds Flow From Operations of $306 million

- Net Income of $38 million

CALGARY, July 27 /CNW/ - Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX: AXC and LSE: AXC), today announced its results for the quarter ended June 30, 2009. The financial results are prepared in accordance with Canadian GAAP and the reporting currency is US dollars.

A conference call will be held for analysts and investors today Monday, July 27, 2009 at 11:00 a.m. Eastern Time / 4:00 p.m. London, U.K. Time. Full details can be found at the end of this announcement.

CEO's Comment

Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "Record production performance and improved commodity prices have contributed to another quarter of strong operating cash flows and healthy netbacks. During the quarter, we saw a significant progression in the Kurdistan Region of Iraq through the commencement of crude oil exports from the Taq Taq licence area. In addition, we were advised that the deepwater Pathfinder drillship should arrive in August to enable Addax Petroleum to commence exploration in the Deepwater Gulf of Guinea."

"The highlight of the quarter was the offer received from Sinopec International Petroleum Exploration and Production Corporation to acquire all of the outstanding common shares of Addax Petroleum by way of a negotiated cash take-over bid for C$52.80 per common share. Addax Petroleum's Board of Directors considered a number of factors when reviewing the offer and believes that the offer is fair to shareholders and is in the best interests of Addax Petroleum. As a result, the Board of Directors unanimously recommended that shareholders accept the offer and tender their shares accordingly. We believe that this offer appropriately reflects the value we have been able to create and will be beneficial for all stakeholders of Addax Petroleum, including our public shareholders, employees and the countries and communities in which we operate."

Selected Financial Highlights

The following table summarizes the selected financial highlights:

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Selected second quarter financial highlights Quarter ended as at

June 30

$ million unless otherwise stated 2009 2008 Change

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Petroleum sales before royalties 735 1,493 -51%

Average realized sales price, $/bbl 59.45 123.17 -52%

Sales volumes, MMbbl 12.4 12.2 2%

Funds Flow From Operations 306 521 -41%

Net income 38 293 -87%

Weighted average common shares outstanding

(basic, millions) 157 156 1%

Funds Flow From Operations per share

($/basic share) 1.95 3.37 -42%

Earnings per share ($/basic share) 0.24 1.88 -87%

Weighted average common shares outstanding

(diluted, millions) 158 162 -2%

Funds Flow From Operations per share

($/diluted share) 1.90 3.22 -41%

Earnings per share ($/diluted share) 0.24 1.83 -87%

Total assets 5,761 4,540 27%

Long-term debt, excluding convertible bonds 1,525 910 68%

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Capital Expenditures - by Region

Nigeria (excluding deepwater) & Cameroon 188 235 -20%

Gabon 97 106 -8%

Kurdistan Region of Iraq 7 9 -22%

Deepwater Nigeria & JDZ 9 3 200%

Corporate, acquisitions, farm-in and licence

signature fees 1 16 -94%

Total 302 369 -18%

Capital Expenditures - by Type

Development 243 300 -19%

Exploration & appraisal 58 53 9%

subtotal 301 353 -15%

Corporate, acquisitions, farm-in and licence

signature fees 1 16 -94%

Total 302 369 -18%

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Selected first half year financial highlights Half year ended as at

June 30

$ million unless otherwise stated 2009 2008 Change

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Petroleum sales before royalties 1,311 2,647 -50%

Average realized sales price, $/bbl 51.52 109.58 -53%

Sales volumes, MMbbl 25.4 24.2 5%

Funds Flow From Operations 582 987 -41%

Net income 43 533 -92%

Weighted average common shares outstanding

(basic, millions) 157 156 1%

Funds Flow From Operations per share

($/basic share) 3.71 6.38 -42%

Earnings per share ($/basic share) 0.28 3.42 -92%

Weighted average common shares outstanding

(diluted, millions) 158 162 -2%

Funds Flow From Operations per share

($/diluted share) 3.59 6.11 -41%

Earnings per share ($/diluted share) 0.27 3.35 -92%

Total assets 5,761 4,540 27%

Long-term debt, excluding convertible bonds 1,525 910 68%

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Capital Expenditures - by Region

Nigeria (excluding deepwater) & Cameroon 470 496 -5%

Gabon 248 172 44%

Kurdistan Region of Iraq 25 16 56%

Deepwater Nigeria & JDZ 22 6 267%

Corporate, acquisitions, farm-in and licence

signature fees (1) 19 -105%

Total 764 709 8%

Capital Expenditures - by Type

Development 580 543 7%

Exploration & appraisal 185 147 26%

subtotal 765 690 11%

Corporate, acquisitions, farm-in and licence

signature fees (1) 19 -105%

Total 764 709 8%

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- Petroleum sales before royalties in the second quarter (Q2) of 2009

amounted to $735 million, a decrease of 51 per cent over petroleum

sales before royalties of $1,493 million in Q2 2008. The decrease in

petroleum sales before royalties was primarily driven by a 52 per

cent decrease in the average crude oil sales price in Q2 2009 to

$59.45 per barrel (/bbl) as compared to $123.17/bbl realized in Q2

2008, offset partially by a 2 per cent increase in sales volumes

between the same periods.

- Funds Flow From Operations for Q2 2009 decreased 41 per cent to $306

million ($1.95 per basic share) compared to $521 million ($3.37 per

basic share) in Q2 2008, largely the result of lower crude oil prices

as referred to above.

- Net income in Q2 2009 decreased 87 per cent to $38 million ($0.24 per

basic share) compared to $293 million ($1.88 per basic share) in the

corresponding period in 2008.

- Capital expenditures decreased by 18 per cent to $302 million in Q2

2009 from $369 million in Q2 2008. Development capital expenditures

totaled $243 million in the second quarter, a decrease of 19 per cent

over development capital expenditures of $300 million in Q2 2008.