Half Yearly Report and Accounts
Perth, Mar 13, 2012 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) Directors submit their report for the half-year ended 31 December 2011.
DIRECTORS
The names of Directors of the Company during or since the half-year and up to the date of this report are as below.
Directors were in office for this entire period unless otherwise stated.
Name & Position
Mr Ian Tchacos, Non-Executive Chairman
Dr Wolfgang Zimmer, Managing Director
Mr Paul Fink, Technical Director
Mr Andrew Childs, Non-Executive Director
REVIEW AND RESULTS OF OPERATIONS
The review of the Company's operations during the half-year ended 31 December 2011 is as follows:
The net loss for the half-year ended 31 December 2011 was $2,802,000 (2010: $1,098,000) after exploration writedowns of $1,512,000.
OFFSHORE ITALY AND TUNISIA (ADX operated, 60% interest) - Kerkouane & Pantelleria Permit, d364 C.R-.AX permit (all ADX operated)
In the offshore Kerkouane license, Tunisia, a 2D seismic survey was completed under a data exchange and acquisition agreement with Shell as part of larger program being undertaken by Shell in their adjacent Sicily Channel licenses. The final PSTM (pre stack time migration) data processing continued on schedule. Under the agreement ADX and its partners have obtained a total of 104 km of 2D seismic in the area around the Kerkouane-1 gas discovery well, which is located in the NE part of the Kerkouane license.
Also within the Kerkouane license a new 3D depth conversion of the Dougga condensate field and Lambouka discovery area were undertaken, using the seismic migration velocities of the PGS Geostreamer 3D survey. ADX conclusion is that the impact on resources upside of the Dougga condensate field is substantial - and has therefore started a review project with an independent competent person company.
A large opportunity of significant size was identified in Lambouka (see Table 1) below the drilled section and ADX intends to explore this in conjunction with future appraisal of the shallower Lambouka gas discovery.
In addition to the Dougga and Lambouka discoveries a number of appraisal and exploration prospects and leads were identified both on 3D and 2D seismic data. The most likely prospective resource estimates are summarized in the two tables below:
Table 1: Prospects covered by 3D, most likely (ML) prospective resource estimate
---------------------------------------------------------------- Resource EstimateProject Name Status [mmboe] Likely Fluid----------------------------------------------------------------Lambouka-Deep Drill Deeper - 126 gas condensate Exploration ----------------------------------------------------------------Dougga West Near Field 226 oil or gas condensate Exploration (resource base on Birsa oil case)----------------------------------------------------------------Elissa Exploration 57 gas condensate----------------------------------------------------------------TOTAL COVERED BY 4093D SEISMIC mmboe----------------------------------------------------------------
Table 2: Prospects and leads covered by 2D seismic only, ML prospective resources
------------------------------------------------------------------ ML ResourceProject Name Status [mmboe] Fluid------------------------------------------------------------------Kerkouane Appraisal 87 gas condensate------------------------------------------------------------------Lambouka Overthrust Exploration 17 gas condensate------------------------------------------------------------------Tazerka - North Exploration 24 oil------------------------------------------------------------------Galliano Exploration 122 gas condensate------------------------------------------------------------------East Galliano Exploration 146 gas condensate------------------------------------------------------------------North Zibbibo Exploration 20 oil------------------------------------------------------------------Cap Bon Mare Exploration 77 gas condensate------------------------------------------------------------------Carthage Exploration 79 gas condensate------------------------------------------------------------------TOTAL 572COVERED BY 2D SEISMIC mmboe------------------------------------------------------------------
As a result of the progressive coverage of the Sicily Channel with modern 3D and 2D data (Shell, ADX), and ADX in house work which has confirmed excellent prospectivity on trend with its Kerkouane exploration and appraisal projects, an application was made for two adjacent permits in Italy. In the case of one permit the application process was completed ("d 364 C.R-.AX"), for the other one the application is still pending. Since more acreage is being taken up by other companies in the area (i.e. Shell, Repsol, ENI) another reason for the application is to get protection acreage for prospects and leads which may extend from the Tunisian Kerkouane permit into neighbouring Italian waters.
ONSHORE TUNISIA (ADX operated, 40% interest) - Chorbane Permit: Sidi Dhaher Oil Discovery
Following the completion of farm outs to secure funding for drilling the Sidi Dhaher-1 exploration well was drilled without safety and environmental incidents to a total depth of 2,011 meters. Although the country situation in Tunisia continues to improve significantly after the revolution, ADX was at the time of drilling the only operator in country to operate an exploration well in a populated area.
Based on wireline data, MDT reservoir fluid samples, crude oil analysis and petrophysical analysis, ADX has estimated the mean contingent oil in place (OIP) resource in the Bireno section to be 51 mmbbls. The Bireno formation hosts a number of producing oil fields in the area. An estimated20 meter dolomitized section intersected in Sidi Dhaher is prognosed to be of particularly good reservoir quality and an oil sample was retrieved out of this section. The confirmation of recoverable volumes and resulting potential reserves are contingent upon a successful well where the primary objective will be proving commercial flow rates and determining likely recovery factors.
Following a competitive tender and bidding process, an LOI (Letter of Intent) was signed with DIETSWELL SA, for the provision of the Sedlar-160 drilling rig to undertake the well testing of the Sid Dhaher #1 well.
ONSHORE ROMANIA (ADX operated, 60% interest) - Parta Concession and AMI Activities
ADX is the operator and held a 60% interest in the permit. The Parta block has an area of 1,221 km2 and is located in the prolific oil and gas producing southern Pannonian basin. This prospective block covers 7 excised oil and gas fields and is considered underexplored based on seismically identified prospectivity.
Following the signature of the fiscally very attractive concession agreement, all required ministerial signatures were obtained and sent to the Prime Minister for final ratification, which is still pending.
Given that the PM signature is regarded as a formality ADX started a tender process for both 2D and 3D seismic acquisition in 2012. The 3D will focus on a proven oil prone area in the north of Parta, whereas the 2D will focus on delineation of new prospects and firm up large stratigraphic gas plays in the southern and middle part of Parta.
The tender process was completed with a good turnout of potential seismic contractors who are technically qualified to undertake the seismic acquisition. 4 offers from various Europe based contractors were evaluated in detail based on commercial and technical criteria for the final contract award.
Asset transactions and Corporate Activities
Significant asset transactions and corporate activities were as follows:
- In the Sicily Channel licenses offshore Tunisia and Italy (Kerkouane and Pantelleria) a Sale and Purchase Agreement was executed to buy back a further 10% interest in the Lambouka prospect area from PharmAust Limited (PAA) and a 20% interest from Carnavale Resources Limited (CAV). ADX holds now a 60% interest in the Kerkouane permit including the Lambouka Prospect Area.
CAV paid US$ 765,000 to ADX as a condition of the deal as reimbursement for past joint venture costs. As consideration for the interest, ADX issued 11,172,535 ordinary shares, approximately 70% of which are subject to phased escrow provisions. In the event that production is derived from a development of the Lambouka-1 well discovery, ADX will additionally pay two production payments of US$1 million each, after 6 and 12 months continuous production respectively.
ADX issued 1,000,000 ordinary shares as consideration for the interest from PAA and also forgave PAA for outstanding past joint venture costs totaling $400,473. PAA paid ADX US$ 50,000 in cash as part of the agreement.
- In November 2011, ADX successfully placed 23,805,357 shares to institutions and sophisticated investors at an issue price of 8 cents per share raising gross proceeds of $1,914,000.
- In December 2011, ADX successfully completed a Share Purchase Plan with XXX shares issued at an issue price of 8 cents per share raising gross proceeds of $270,000.
SUBSEQUENT EVENTS
The following events have occurred since 31 December 2011:
- The preparations for testing of the Sidi Dhaher-1 oil discovery have now been completed and scheduling to move the rig and auxiliary equipment to the well site is currently underway with key site personnel in place. On behalf of the joint venture ADX is also undertaking preparations for an extended well test to establish long term flow performance in the event of a successful test.
- In Romania, a buy back of the interests of Caspian Oil & Gas Limited and Sibinga Petroleum Limited each having held a 20% interest in the Joint Venture in Romania was completed successfully. The transactions reposition ADX as the operator and 100% interest holder in the Parta concession and eleven prospecting permits. ADX has received considerable third party interest for participation in this prospective acreage from larger European companies. The consideration for acquiring these companies interests is the reimbursement by ADX to each company for past joint venture contributions (a total of euro 673,243, approximately A$865,000).
No other matter or circumstance has arisen since 31 December 2011 that has significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity, in subsequent financial years.
ROUNDING
The amounts contained in this report and in the financial statements have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the Company under ASIC Class Order 98/0100. The Company is an entity to which the Class Order applies.
To view the complete ADX Energy Half Yearly Report, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-ADX-581741.pdf
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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