ADX Energy Limited (ASX:ADX) Sidi Dhaher Operational Update
Perth, Mar 14, 2011 AEST (ABN Newswire) - ADX Energy Ltd (
ASX:ADX) (PINK:ADXRF) advises that ADX on behalf of its partners has delayed the immediate mobilisation of the Challenger rig to spud the Sidi Dhaher well. ADX is working with the local authorities to ensure that during the rig move and the subsequent operational phase of the well, the safety of local residents near the well site and along the access road is provided.
ADX would like to emphasise this short delay is not due to security concerns with respect to our operations, but rather the company's concern for the safety of local rural inhabitants which prior to the revolution would have been provided, when necessary, by local police and government officials.
This is the first well drilled in the Sidi Dhaher community in over 20 years and consequently it has generated a lot of local interest from a spectacle and employment opportunity aspect, which combined with the rapid transition to greater democracy and a less autocratic government regime, has required a more cautious approach to operations than in the past.
While this short delay is frustrating, it will not have any significant well cost impact and is considered operationally prudent to ensure safe and efficient operations.
The political situation in Tunisia continues to improve with the replacement of all ministers and local governors that had association with the previous presidential regime. As the importance of maintaining and restoring the country's economic base in the post revolution period is being absorbed by the interim government and bureaucracy, there is also now a greater understanding by the designated energy authority and local government of the importance of the need to assist ADX and other operators to ensure the safety of local inhabitants during drilling operations. Those local authorities are now showing a greater willingness to provide the required assistance.
ADX anticipates that the appropriate safety measures will be provided by the local authorities in the near future and ADX can then confidently commence safe operations for the benefit of its partners, shareholders and local residents.
ADX will continue to provide regular updates.
Participant interests in the Sidi Dhaher -1 well will be as follows;
- ADX Energy Ltd 40% Operator
- Gulfsands Petroleum Plc 40% *
- 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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