ADX Energy Limited (ASX:ADX) Update on Sidi Dhaher Operations
Perth, Aug 3, 2011 AEST (ABN Newswire) - ADX Energy Ltd (
ASX:ADX) is pleased to provide the following update on progress with preparations for the commencement of drilling the Sidi Dhaher well on the Chorbane licence, onshore Tunisia.
The rig up process has been essentially completed save for a few small, but critical operational safety items that remain unresolved which are resulting in an ongoing delay in the spudding of this well.
Material critical for the testing of the Blow Out Preventer ("BOP") and diverter as well as certain pressure valves and related transducers for the standpipe have been delayed in delivery to the well site location due to transport and customs challenges resulting from this equipment being sourced from the drill contractor's (Challenger Limited) regional offices in Benghazi, Libya.
While the Challenger rig is now basically rigged up and ready to operate, due to the prevailing conditions in Libya and delays in Tunisian customs processing, the rig cannot be formally accepted by ADX, the operator of the Sidi Dhaher well, until such time as these safety critical items are on site, installed and satisfactorily inspected and tested. ADX therefore anticipates that there will be some minor but frustrating additional slippage in the anticipated spud date for the well.
Under normal circumstances ADX would expect the above issues to be resolved within a few days however given the current political situation in Libya, ADX is not yet in a position to provide an estimate of the likely spud date for this well. ADX notes that payments to the drilling contractor for use of this rig will only commence once the rig is fully commissioned and accepted as ready to spud by ADX.
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% *
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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