ADX Energy Limited (ASX:ADX) Discovers Hydrocarbon Bearing Zones in The Lambouka-1 Well
Perth, Sep 7, 2010 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) (PINK:ADXRF) is pleased to announce hydrocarbon bearing zones have been discovered in the Lambouka-1 well. Drilling and wire line logging operations on the well have now been concluded, having reached a total measured depth of 2,786 meters.
Analysis of the final suite of wire line logs has supported earlier results from logging while drilling, and at least two hydrocarbon bearing zones are present in the Abiod Formation - the primary objective for the Lambouka - 1 well. The nature of the hydrocarbons is likely to be comprised of gas and possibly condensate in the lower interval based on the hydrocarbon shows recorded from the cuttings while drilling and gas chromatography. Due to technical reasons the gas shows were not as strong as encountered in the same Abiod interval in the nearby Dougga-1 discovery, however no carbon dioxide (CO2) was detected while drilling the Abiod Formation unlike in the Dougga-1 discovery.
A net pay of approximately 23 metres is interpreted within the two reservoir units. This compares favourably to the nearby Dougga discovery which is interpreted to have a net pay of 14 meters in the Abiod and an assessed mean resource of 74 MMBOE (million barrels of oil equivalent).
Interpretation of 3D seismic suggests there is up dip potential from the crest of the structure to the Lambouka-1 well location of approximately 250 meters. In addition, based on wire line interpretation, the first interpreted water bearing reservoir was encountered approximately 230 metres below the upper hydrocarbon zone. Specialist wire line logs and drilling data indicate that the Abiod limestone formations at Lambouka-1 are extensively fractured which is a positive factor for reservoir productivity.
As a result of ongoing drilling fluid losses and increasing well bore deterioration it has not been possible to safely recover fluid samples or pressure data from the Abiod formation. Ongoing operations in the existing well bore have become increasingly difficult and the productivity of the reservoir from this well bore is very likely to have been adversely effected by losses and use of lost circulation materials there by diminishing the ability to obtain representative flow rates from any drill stem test.
The joint venture is currently considering whether to suspend or plug and abandon the Lambouka-1 well, with a decision on this matter likely to depend on an assessment of whether suspension and future re-entry of this well would provide the best opportunity to minimise rig time and maximise reservoir information to be acquired from a drill stem test of the Abiod Formation. As described above, given that the Lambouka structure has further up dip potential from the Lambouka-1 location it is possible that a future bore hole trajectory for the lower section of the well could also test the up dip potential of the structure together with the porous sandstones encountered in the lower part of the well that are interpreted to be in closure at an up dip location.
The results described in this announcement are preliminary in nature. ADX will continue to interpret the data obtained from the Lambouka-1 well in conjunction with seismic data and provide further assessments of the potential of the Lambouka discovery.
Participants in the Lambouka-1 well are as follows (note 1);
ADX (note 2) 30% Operator
Gulfsands Petroleum Plc (LON:GPX) (PINK:GFPOF): 30%
Carnavale Resources Ltd (ASX:CAV): 20%
XState Resources Ltd (ASX:XST): (note 3) 10%
PharmAust Limited (ASX:PAA): 10%
Notes:
1. The respective interests in the Lambouka Prospect area in the Kerkouane Permit and the Pantelleria Licence are based on the completion of all farmin obligations.
2. ADX' interest is held via wholly owned subsidiary Alpine Oil & Gas Pty Ltd and pending completion of the farmin obligation, Alpine will continue to hold 100% of the Pantelleria Licence.
3. XState Resources Limited interest is held via wholly owned subsidiary Bombora Energy Limited.
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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