ADX Energy Limited (ASX:ADX) Announces Significant Increase In The Resource Potential At Dougga Gas Condensate Discovery In Offshore Tunisia
Perth, Nov 4, 2010 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) (PINK:ADXRF) is pleased to announce a significant increase in the resource potential at its Dougga Gas Condensate discovery offshore Tunisia, based on the results of ADX remapping using its leading edge dual sensor 3D seismic data acquired earlier in 2010. ADX holds a 60% interest and is operator of Dougga and the surrounding Kerkouane permit.
Highlights
- Increase of in-place gas and condensate volume estimates across all confidence categories - 42% for P(90), 26% for P(50) and 11% for the P(10) estimate
- Inferred revised mean recoverable Contingent Resource of 234 bcf Sales Gas and 50 mmbbls of condensate and LPGs (89 million barrels of oil equivalent)
- 3D seismic mapping indicates 300 meters of updip potential from Dougga 1 discovery well which is interpreted to have intersected a 200+ metre column of gas and condensate.
These results are an important first step in the ongoing technical and commercial assessment of the Dougga discovery that will incorporate an independent resource assessment, an independent review of development options and associated costs and an economic assessment. The objective of the studies is to establish the technical and commercial feasibility of the Dougga discovery after incorporating the results of an appraisal well planned for 2011. A detailed development review and resource assessment study has been initiated with AGR - Tracs International Consultancy Ltd ("Tracs").
Summary of the 3D seismic mapping results
A key input parameter for resource calculations of the discovery is the Gross Rock Volume "GRV" - being the volume of hydrocarbon bearing reservoir in the structure. GRV is a direct output from the mapping of the 3D seismic. The new GRV has been combined with all the other parameters used in the Tracs 2009 Competent Person's report on Dougga for calculating in place raw gas volumes.
The new mapping of the Dougga discovery is particularly encouraging because of the potential 42% increase in the "high confidence" P(90) contingent resources case. This upgrade is largely due to a significant improvement in structural and stratigraphic definition utilising the 3D data set. Table 1 (see link at the bottom of the release) shows changes to the in place raw gas potential for the P(90), P(50), P(10) and mean confidence resource cases resulting from the revised mapping together with the inferred recoverable sales gas and condensate volumes based on proportional increase in line with GRV, using the 2009 Tracs resource assessment as the reference.
Increased confidence in resource potential and reservoir quality
In addition to the substantial potential increase to the "high confidence" P90 contingent resource case as a result of the 3D seismic mapping, the seismic has also revealed the potential for a thicker high quality Abiod reservoir further updip from the Dougga 1 well intersection. As a result a location approximately 300 meters updip from Dougga 1 will provide an excellent candidate for a future Dougga well.
The 3D seismic interpretation also indicates that Dougga is likely to contain a highly fractured Abiod reservoir analogous to that encountered at Lambouka. The interpreted fracturing and additional Abiod section based on ADX 3D seismic mapping enhances the potential for good reservoir productivity which in turn is important for the commerciality of Dougga. Demonstrating commercial gas and condensate flow rates via well test will be a key objective of the next well on the Dougga structure.
Additional Dougga prefeasibility study results will be provided as they become available.
The following Joint Venture is participating in the Kerkouane permit:
- ADX: 60% (Operator)
- Gulfsands Petroleum Plc (LON:GPX) (PINK:GFPOF): 30%
- XState Resources Ltd (ASX:XST)*: 10% (*XState has an option with ADX to increase XStates interest in Dougga to 20% under agreed farmin terms. If exercised ADX interest would decrease to 50%.)
For the complete ADX Energy announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/64095-ASX-ADX-513907.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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