Quarterly Activities Report June 2014
Perth, July 23, 2014 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) (ADXRF:OTCMKTS) provide the Quarterly Activities Report for the period ending June 2014 with the following significant highlights.
Highlights
Parta Permit (EX-10), Onshore Western Romania: Seismic permitting and preparation for upcoming 2D and 3D acquisition campaign ongoing.
During the quarter ADX has continued its permitting activities for the next 2D and 3D seismic campaign. This is a follow up to the 2013 2D and 3D seismic campaign which revealed a previously unidentified sizeable structure with multiple targets. This prospect could be the first drilling target in the Parta license with drilling preparations commencing in late 2014.
Tunisia & Italy: ADX has been awarded a new Offshore Italy Permit and now holds and operates almost 8,000 sqkm of acreage in the highly prospective foothill belt area.
The Italian Ministry of Industry has awarded the offshore exploration permit d 363 C.R-.AX to ADX (ASX release 21 May). ADX is the 100% operator of this license and now holds a total of 4 licenses in the Sicily Channel area within the proven but underexplored offshore Sicily Channel oil & gas area.
Having now secured 100% operatorship in all four licenses which cover almost 8,000 sqkm of ADX license area in the highly prospective foothill belt fairway will further facilitate the ongoing farmout process in a positive way.
Romania Parta Concession - Pannonian Basin
ADX is the Operator and holds a 50% Interest
During the quarter the preparation for seismic acquisition has been progressed. The main focus was on permitting the 3D area adjacent to the high quality 3D seismic data already acquired in late 2013.
The new acquisition will also include a dense 2D high resolution grid over a prospect identified on the 2013 seismic acquisition campaign. This prospect, discussed in previous announcements has a shallow gas and deeper an oil target.
While 3D seismic is certainly preferable to line up a good size portfolio of drilling targets, the 2D infill seismic over the prospect is acquired with a view towards an early drilling of the first Parta well, possibly in towards the end of 2014.
Offshore Tunisia & Italy - Kerkouane & Pantelleria Permits, d363 C.R-.AX permit
Kerkouane 100% interest; Pantelleria 100% interest; d364-C.R-AX 100% interest, d363-C.R-AX 100% interest
In Italy ADX succeeded to secure the award of the new offshore exploration permit d 363 C.R-.AX ("Nilde" permit). The awarded permit is on trend with ADX's offshore Tunisian Kerkouane Permit. It contains the ENI operated and abandoned Nilde oil field. With this new additional award ADX has now secured a large exploration area in the proven but underexplored foothill belt area of the Sicily Channel. This area - as many other foothill belt tectonic belts such as the on trend Italian Apennines, Kurdistan and Iran - contains a chain of large undrilled structures. ADX has proven with its approximately 700 km2 geostreamer 3D seismic acquisition on the Tunisian side of the hydrocarbon trend, that these large potentially hydrocarbon bearing structures can be imaged with modern technology. This was not possible in the past and explains the very low number of exploration wells, despite several oil and gas discovery on this trend.
In addition to generally excellent prospectivity of the area the specific newly obtained Italian "Nilde" license block would also allow relatively smaller discoveries to be commercially developed. This is due to a combination of water depths predominantly less than 100 meters and the appropriate fiscal regime in Italy.
On the Tunisian side of the foothill belt trend (Kerkouane license) ADX will also hold a 100% operated interest in all permits after receipt of government ratifications. A two years license extension has been agreed with the Tunisian authorities, but government ratification is still pending.
With holding a 100% operated interest in its entire Sicily Channel license portfolio (see tenement list below) ADX has started a renewed farmout campaign. The 2 year extension period will allow for the opportunity to acquire additional 3D seismic and hence add significant value to the prospect portfolio in a very prospective area which in the past has suffered from mostly poor quality 2D seismic vintage data.
New Ventures Activities
In order to enhance its portfolio ADX has continued to screen opportunities especially in Eastern Europe, the Mediterranean basins and the Caspian area, with a focus on the next Romanian bid round where 36 blocks are expected to be offered.
Tenement List
Tenements held at the beginning and the end of the half year reporting period as per below table:
-------------------------------------------------------------------Permit Percentage held at Percentage held at the beginning of the end of the the Quarter the Quarter % acquired--------------------------------------------------------------------Offshore Tunisia, Kerkouane, ADXoperated 100% 100% 0%--------------------------------------------------------------------Onshore Tunisia, Chorbane, Gulfsandsoperated 0% 0% (**) n.a.--------------------------------------------------------------------Offshore Italy, Pantelleria, ADX operated 100% 100% 0%--------------------------------------------------------------------Offshore Italy, d 364 C.R-AX, ADX operated 100% 100% 0%--------------------------------------------------------------------Offshore Italy, d 363 C.R-AX, ADX operated 0% 100% 100%--------------------------------------------------------------------Onshore Romania, Parta, ADX operated 50% 50% 0%--------------------------------------------------------------------
(**) subject to government approval
ADX Energy holds 18.36% shares of ASX listed Riedel Resources Limited (http://www.riedelresources.com.au).
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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