ADX Energy (ASX: ADX) is an oil and gas exploration and appraisal company. ADX operates five oil and gas permits in North Africa and Europe. ADX also has gold and base metal interests in Australia held via its stake in ASX listed Riedel Resources.
ADX Energy (ASX: ADX) has increased exploration exposure in the area between Tunisia and Italy, with a sale and purchase agreement to buy back a 20% interest in the Lambouka Prospect Area in the Kerkouane Permit from Carnavale Resources (ASX: CAV).
ADX Energy has also cancelled the option of Carnavale to purchase an interest in the section of the Lambouka prospect that extends into Italian waters.
The key terms of the sale include upon a payment of US$765,000 by Carnavale to ADX Energy for past joint venture costs and satisfaction of other conditions precedent, ADX Energy will issue to Carnavale 11,172,535 shares - with the majority escrowed.
There are also some conditions to the agreement, and in the event that production is derived from a development of hydrocarbons discovered in the Lambouka #1 well drilled in 2010 - ADX Energy will pay two production payments of US$1million each.
The history is ADX Energy farmed out a 20% interest in the Lambouka Prospect Area to Carnavale in early 2010 to provide funding for the Lambouka #1.
The Lambouka-1 well intersected a gas column interpreted based on comprehensive LWD (logging while drilling) and a wireline logging data set which was recovered during the drilling of the well, but due to the instability of the borehole while drilling and evaluating Lambouka, it was not possible to test the well.
Lambouka is located 70 kilometres north-east of onshore Cap Bon in the Sicily channel, with the Dougga gas condensate discovery 22 kilometres to the south-south-west.