Addax Petroleum today announced petroleum sales before royalties in the third quarter of 2008 amounted to $1,335 million, an increase of 44 per cent over petroleum sales before royalties of $925 million in the third quarter of 2007.

This increase was primarily driven by a 48 per cent increase in the average crude oil sales price in the third quarter of 2008 to $110.32 per barrel (/bbl) as compared to $74.31/bbl realized in the third quarter of 2007, offset slightly by a 4 per cent decline in sales volumes between the same periods. The Corporation still retains a large oil inventory balance that is expected to decline further before the end of the year.

Funds Flow From Operations for the third quarter of 2008 increased 61 per cent to $539 million ($3.45 per basic share) compared to $335 million ($2.15 per basic share) in the third quarter of 2007.

Net income in the third quarter of 2008 increased 103 per cent to $248 million ($1.59 per basic share) compared to $122 million ($0.78 per basic share) in the corresponding period in 2007.

Capital expenditures, excluding acquisition costs, increased by 72 per cent to $483 million in the third quarter of 2008 from $281 million in the third quarter of 2007.

Development capital expenditures in the quarter totaled $427 million, an increase of 71 per cent over development capital expenditure of $250 million in the third quarter of 2007. Exploration and appraisal capital expenditures totaled $56 million in the quarter, an increase of 81 per cent over exploration and appraisal capital expenditures of $31 million in the third quarter of 2007.

Corporate and acquisition costs associated with new business activities were $53 million in the third quarter of 2008 compared to $78 million in the third quarter of 2007. New business activities included the acquisition of two new exploration license areas for the Corporation's property portfolio, the increase of the Corporation's working interest in one exploration license area and the commencement of an integrated gas utilization project in Nigeria.

At the end of the third quarter 2008, bank debt totaled $1,025 million and is consistent with the corresponding quarter in 2007. Bank debt is drawn under two facilities that consist of a $1.6 billion senior secured reducing revolving facility (due January 2012) and a $500 million senior unsecured revolving facility (due April 2010) which was underwritten during the third quarter of 2008.