Addax Petroleum Corporation, on August 16, 2006, closed the previously announced offering of 13,000,000 subscription receipts by way of prospectus at a price of $27.25 per subscription receipt.

Each subscription receipt represents the right to receive one Addax Petroleum common share, without payment of additional consideration upon completion of the acquisition of certain subsidiaries of Pan-Ocean Energy Corporation Limited which was announced on July 20, 2006 and is expected to close on or about September 7, 2006.

In connection with the offering, Addax Petroleum granted to the underwriters an over-allotment option. Pursuant to the exercise of the over-allotment option on August 30, 2006, Addax Petroleum issued an additional 1,750,000 subscription receipts at a price of $27.25 per subscription receipt for aggregate gross proceeds of $401,937,500.

The net proceeds of the offering will be used to fund a portion of the Pan-Ocean acquisition.

Addax Petroleum was advised by a team from both the Toronto and Calgary offices of Fasken Martineau including John Turner, Richard Peters, John Sabetti, Jason Mudge, Krisztian Toth, Dan Rankin, Karoline Kralka, Sarah Gingrich, Ronald Nobrega, Mitchell Thaw and Hugoline Morton (student-at-law).