ADX Energy Limited (ASX:ADX) Tunisia Operations Update: Sidi Dhaher Well Preparations
Perth, Feb 24, 2011 AEST (ABN Newswire) - ADX Energy Ltd (
ASX:ADX) is pleased to report that preparations for the commencement of drilling operations on the Company's operated well are progressing according to plan albeit slightly slower than expected. The company is moving ahead very cautiously despite the improved security situation in Tunisia. However these minor delays have not resulted in any significant additional cost. The current situation in Libya is not affecting the company's operations in Tunisia. The well location is 350 km west of the Tunisian border with Libya.
The company is finalizing arrangements to mobilize camp facilities and drilling rig with the intention to move camp first followed by the drilling rig. The schedule will involve a 5 day set up for camp followed by a 5 day rig move. Once the rig up is completed and all equipment is tested, the company will take on responsibility for the rig and then spud the well. Mobilization of camp facilities is expected within the next days.
Pre testing of all rig components pre mobilization to rig site and before assuming contractual responsibility is finished with some equipment replacements being undertaken. Site preparations have been completed and surface casing has been set. All statutory approvals for access and drilling have been obtained.
The company is very cautious in relation to security issues and is ensuring that all services are available and appropriate logistical measures will be in place to provide smooth operations once drilling has commenced.
As previously announced, ADX has already secured farm-outs with Gulfsands Petroleum Plc, Xstate Resources Ltd and Verus Investments Ltd which are expected to fully fund ADX' share of drilling costs for the Sidi Dhaher well.
The Sidi Dhaher prospect is located in the 2,428km2 large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil and gas infrastructure. A summary of the Chorbane Permit and the Sidi Dhaher prospect is attached to this ASX release.
Participant interests in the Sidi Dhaher -1 well will be as follows;
ADX Energy Ltd 40% Operator
Gulfsands Petroleum Plc 40% * (LON:GPX)
XState Resources Ltd 10% * (ASX:XST)
Verus Investments Limited 10% * (ASX:VIL)
(*) Note: The respective participant interests in the Sidi Dhaher well and the Chorbane Permit are based on the completion of all farmin obligations.
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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