AuDAX Resources Limited (ASX:ADX) Announces Sicily Channel Permit Farm Out Agreement With Gulfsands
Perth, May 18, 2010 AEST (ABN Newswire) - AuDAX Resources Limited (
ASX:ADX) (PINK:ADXRF) is pleased to announce that a farm out agreement has been entered into between Alpine Oil & Gas Pty Ltd ('AOG') (a wholly-owned subsidiary of AuDAX) and Gulfsands Petroleum Plc (LON:GPX)('Gulfsands') in relation to AuDAX's Kerkouane licence ("Kerkouane Permit") and the adjacent exploration permit in Southern Italy (G.R15.PU, known as the Pantelleria Licence) which are together described here in as the Sicily Channel Exploration Permits (the 'Farmin Agreement'). This Farmin Agreement concludes the formal farmin documentation required by AuDAX for the funding of the Lambouka -1 exploration well.
Gulfsands is listed on the Alternate Investment Market of the London Stock Exchange and has oil and gas production, exploration and development activities in Syria, Iraq and the U.S.A. The Kerkouane Permit is located offshore northeast Tunisia and more particularly described in the figure below (see link at the bottom) together with G.R15.PU (the "Pantelleria Licence") which is located in adjacent Italian waters.
Gulfsands will be entitled to earn up to 30% interest in the Kerkouane Permit by paying varying but "promoted" proportions of the costs of the 3D seismic programme recently acquired and of the Lambouka exploration well on the Lambouka Prospect, located within an area that incorporates portions of the Kerkouane Permit and the Pantelleria Licence. The Lambouka -1 exploration well is due to commence drilling in mid June, 2010. The Farmin Agreement provides for Gulfsands to earn an initial 20% interest in the Kerkouane Permit, with Gulfsands having an option to earn a further 10% interest.
The Farmin Agreement also provides an election, exercisable at no further cost, to either AuDAX or Gulfsands, for Gulfsands to acquire an interest in the Pantelleria Licence equivalent to the interest earned by Gulfsands in the Kerkouane Permit.
Following completion of all farmin obligations, the respective interests in the "Lambouka Prospect" being the limited area defined to be over the Lambouka prospect within both the Kerkouane Permit and the Pantelleria Licence, will be as follows:
AOG 40% (operator)
Gulfsands 20% (with an option to acquire a further 10% from AOG)
Bombora 10%
Carnavale (ASX:CAV) 20%
PharmAust (ASX:PAA) 10%,
Following completion of Gulfsands' and Bombora's farmin obligations and exercise of elections with respect to the Pantelleria Licence, the respective interests in the remainder of the Kerkouane Permit (outside of the Lambouka Prospect), the Kerkouane production sharing contract and the Pantelleria Licence will be as follows:
AOG 70% (operator)
Gulfsands 20% (with an option to acquire a further 10% from AOG)
Bombora 10% (with an option to acquire a further 10% from AOG)
The acquisition and processing of the 3D seismic over the Lambouka Prospect was completed ahead of schedule and the interpretation has identified a drilling location within the originally mapped area of the Lambouka Prospect and located in Tunisian waters. The final well location is subject to a geotechnical site survey (currently underway) and government approval. The 3D seismic has excellent seismic reflectivity present at oil and gas target levels not seen previously on the 2D data which is interpreted by Audax as evidence of the presence of a quality reservoir and as a result further upside oil potential.
In addition to the Lambouka Prospect, another large prospect north of the Dougga gas condensate field has been identified on seismic. This prospect falls within the remaining area of the Kerkouane Permit. It is expected that interpretation of the fully processed Geostreamer 3D data (approx. 640 km2) will reveal additional prospects with improved prospectivity.
The remaining forward work commitment for the Kerkouane permit requires the drilling of only one exploration well. AOG has entered into a drilling contract with a subsidiary of Atwood Oceanics Inc to provide the "Atwood Southern Cross" semi-submersible offshore drilling unit to drill the "Lambouka" exploration well on the Lambouka Prospect with an expected spud date of mid June 2010.
FINALISATION OF CHORBANE FARMIN
AuDAX is completing farmin documentation with Gulfsands (as announced on the 22nd of March 2010) to finalise the funding of an exploration well on its Chorbane block, onshore Tunisia, with the aim of drilling an exploration well within 2010.
For the complete AuDAX resources announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/62883-ASX-ADX-491482.pdf
About ADX Energy Limited
ADX Energy Limited's (
ASX:ADX) (OTCMKTS:ADXRF) is an Australian Stock Exchange (ASX) listed International Energy Explorer which is soon to become a Producer. The Company's Geographical focus is Onshore Europe and Offshore Mediterranean with a portfolio consisting of recently acquired Production as well as Appraisal, Development and Exploration Assets. ADX's interests are located in Romania, Italy, Tunisia and most recently Austria. The Company's immediate focus is on low cost, low risk, profitable resource commercialisation opportunities onshore and higher cost higher reward offshore projects in the longer term. The Company is headquartered in Perth, Western Australia with additional operating offices in Bucharest (Romania) and soon to be Vienna (Austria). The Company also has representative offices in Italy and Tunisia.
ADX Energy's vision is to establish a stable cash producing platform onshore Europe and develop a number of rapid resource to reserves opportunities as well as low risk exploration potential with access to infrastructure in favourable fiscal and operating environments.
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