ADX Energy Ltd (ASX:ADX) Announce Completed Competent Person Report on Dougga Gas Condensate Discovery
Perth, Mar 2, 2011 AEST (ABN Newswire) - ADX Energy Ltd (
ASX:ADX) is pleased to announce that following the ASX Dougga interim resource results update from 4th November 2010, the competent person's report (CPR) has now been completed by TRACS-AGR ("Tracs"). TRACS-AGR is a leading provider of essential services to the international petroleum industry with worldwide operations. This independent review by a highly reputable resource certification company has resulted in a number of encouraging findings which indicate that the Dougga gas field is a potentially viable resource, and that the planned Dougga appraisal well is an important next step to confirming its commercial potential.
Highlights of the Dougga independent evaluation:
- Mean recoverable Contingent Resources are 41 million barrels of liquids (condensate and LPG) and 191 bcf of sales gas.
- 20% increase of gas in place (GIIP) volumes for the high confidence (P90) case compared to previous work based on 2D seismic. The recently acquired 3D seismic has significantly increased the certainty of the project.
- Development of Dougga can be undertaken with proven, off the shelf technology.
ADX currently holds 60% equity and is the operator of the project with Gulfsands (LON:GPX) holding 30% and Xstate (ASX:XST) holding 10%.
The total gas in place (GIIP) based on 3D seismic and Dougga-1 well information is shown in the table below:
----------------------------------------------- GIIP (BCF)----------------------------------------------- P90 P50 P10 Mean-----------------------------------------------Probabilistic Total 384 585 894 618-----------------------------------------------
Whilst Dougga is a large size gas resource, the project's commerciality would be substantially enhanced by the potential high liquid yield of 90 bbls of condensate/mscf. (This estimate is based on an interpretive analysis of the samples taken by Shell in 1981). Using this condensate yield and gas quality analysis TRACS has concluded that the recoverable Contingent Resources at Dougga are:
These figures are in line with ADX in-house estimates previously announced. While TRACS has assigned in place gas resources to the deeper Allam reservoir section, they have assigned no recoverable resources from the Allam reflecting the uncertainty of deliverability. However, ADX recognizes upside potential for production from the Allam resources.
Due to the high liquid yield it would be technically possible to export condensate offshore; however the current development concept foresees a sale of both gas and liquids into the local Tunisian market at attractive European market related gas prices and international oil prices.
Key results from the 3D seismic analysis
In addition to the increase of the "high confidence" P90 Contingent Resources, the 3D seismic has also revealed the potential for a thicker high quality reservoir further updip from the Dougga 1 well intersection. A location approximately 300 meters updip from Dougga 1 will provide an excellent candidate for a future well.
Key objectives of the next well on the Dougga structure are:
- confirm the Dougga structural interpretation;
- confirm a hydrocarbon column in excess of 500 metres;
- demonstrate commercial gas and condensate flow rates via well test;
- confirm LPG and condensate yields; and
- assess production enhancing reservoir fracturing on the crest of the structure.
The Joint Venture aims to be ready to drill a Dougga appraisal well early in 2012.
The following Joint Venture is participating in the Kerkouane permit:
ADX 60% Operator
Gulfsands Petroleum Plc 30%
XState Resources Ltd* 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%
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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