Farms Out Romanian Permit
Perth, May 23, 2012 AEST (ABN Newswire) - ADX Energy Ltd (
ASX:ADX) is pleased to announce that a farm in agreement has been executed between ADX ('ADX') and Rohoelaufsuchungsgesellschaft ('RAG') in relation to ADX's Parta licence ("Parta Permit") in Romania.
RAG will make an upfront payment to ADX and be entitled to earn 50% interest in the Parta Permit upon a payment in lieu of past costs and a payment of a promoted share of future costs prior to the commencement of seismic operations. The forward work commitment for the Parta Permit requires the acquisition of 2D and 3D seismic and the drilling of three exploration wells.
ADX will retain a 50% interest and operatorship.
The farm in agreement is subject to approvals by the National Agency for Mineral Resources of Romania.
ADX is pleased to commence a joint venture partnership with a financially and technically capable Company such as RAG. ADX has been able to leverage its material equity position and secure 3.1 million Euros of funding to undertake modern 3D and 2D seismic during 2012 with a view to drilling exploration wells as soon as practicably possible. This transaction positions ADX as the operator of a strong joint venture with a capable partner in the prospective Parta concession.
The remaining 8 prospecting permits are still being held by ADX at 100%.
Background on Parta Permit and RAG
A concession agreement for Parta was signed in January 2011 with NAMR (Agentia Nationala Pentru Resurse Minerale). A final ratification by the Romanian authorities has been delayed due the recent changes of the Romanian government and is expected in the near future. The Parta Permit covers an area of 1,221 km2 and is located in the southern Pannonian basin area of western Romania. It covers 7 excised oil and gas fields and is considered underexplored. Previously ADX has identified several conventional leads and prospects which are estimated to contain a total of 47 mmbls of oil and 480 bcf of gas (recoverable mean prospective resource potential). The main target depths are relatively shallow between 800 and 2000 metres.
The ongoing exploration activity on the ADX' Romanian acreage is resulting in the identification of additional exploration potential. Romania represents an important growth opportunity in line with ADX's ongoing strategy of focusing its resources on core areas which offer proven prospectivity, excellent fiscal terms and materiality.
The new partner RAG is a privately held Company incorporated in Austria. The Company has a significant asset position in Austria and Hungary. Since its foundation in 1935, RAG has been exploring for and producing oil and natural gas in Central Europe. RAG also ranks amongst the leading underground natural gas storage operators in Europe supplying both national and international customers.
RAG has extensive industry experience, technological expertise, highly specialised knowledge and is operating at the highest international safety and environmental engineering standards.
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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