2012 Annual Financial Report
Perth, Sep 28, 2012 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) is pleased to provide the Company 2012 Annual Financial Report.
CHAIRMAN'S REVIEW
Your company has endured many challenges during the year with the aftermath of the Tunisian revolution and difficult markets curtailing the Company's activities. However, despite these difficulties exceptional opportunities remain open to the Company.
Importantly, as Operator of all our exploration licenses, I am very pleased to report that the Company has conducted all operations in a safe and environmentally sustainable manner.
Despite difficult market conditions ADX has been able to fund its activities and continue to enhance its asset base through a variety of methods including;
- a placement and share purchase plan to raise $1,914,000 and $270,000 respectively for Sidi Dhaher testing and exploration activities;
- a buy back of a 20% interest in the Lambouka Prospect Area in the Kerkouane Permit from Carnavale Resources Limited (CAV), and;
- a further buy back of 10% interest in the Lambouka Prospect Area in the Kerkouane Permit from PharmAust Limited (PAA).
The two latter transactions restore ADX's interest in the entire Kerkouane permit to 60% and provide an uncomplicated joint venture enhancing the opportunity for an attractive future farmout.
As reflected by the Company's recent share price performance the Sidi Dhaher well testing result was a significant disappointment for all of us. It should, however, be remembered that the majority of ADX costs associated with that program were funded by farmouts and the Company still holds a portfolio of high impact appraisal and exploration projects at high equity interests.
Looking forward ADX has exceptional opportunities in Tunisia and Romania outlined in the following Operations Report that the Board expects will get the Company back on a solid growth path. These include;
- Appraisal drilling of the Dougga field offshore Tunisia to determine the commerciality of this material gas condensate discovery.
- Near field exploration drilling in the Sicily channel, offshore Tunisia.
- Seismic acquisition in preparation for drilling in the highly prospective Parta exploration block, onshore Romania.
- Seismic acquisition on the Chorbane permit, onshore Tunisia which will focus exploration activities in an area which is on trend with several producing oil fields.
While capital markets are expected to remain challenging the company has developed an excellent track record for funding its exploration activities from farm outs. The Board therefore reasonably expects to secure a farm out for its Sicily channel acreage that should result in the appraisal of the Dougga discovery and at least one of the exceptional near field exploration opportunities, both of which are currently held at a high equity interest of 60%.
Despite a very challenging period your Company has bright future. The Board looks forward to the coming year which we expect will result in significant progress across the Company's prospective asset base. We expect these activities will provide ADX shareholders with exposure to some exceptional appraisal and exploration drilling opportunities funded by industry farm outs.
On behalf of the Board I would like to thank you for your support and I look forward to the rapid repositioning of ADX on a solid growth path for the benefit of our shareholders.
IAN TCHACOS
Chairman
View the complete ADX Energy Annual Report at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-ADX-606078.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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