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 started operations on its highly anticipated flow testing of the Sidi Dhaher-1 oil discovery at the Chorbane licence, onshore Tunisia.
The Sedlar test rig has started drilling out the cast iron safety plug in the cased hole and will then start the 3 multi-stage production testing, which is expected to take about 3 weeks.
This is aimed at confirming the recoverable volumes and resulting potential reserves, and identify commercial flow rates and recovery factors.
Detailed interpretation and analysis of reservoir fluid samples recovered during drilling had indicated a good quality Bireno carbonate reservoir with a 30 metre oil column.
This formation has proven very productive in several nearby fields.
Log analysis has also indicated potential pay in the Cherahil formation, which will be tested if the Bireno formation test results are unfavourable.
A successful test will lead to an extended well test program to provide additional production and reservoir performance information that will be used for field development and planning purposes.
Sidi Dhaher has estimated mean contingent oil in place resource volumes of 51 million barrels.
The 2428 square kilometre Chorbane permit has all the hallmarks of a highly prospective oil and gas asset.
It contains large undrilled structures in a producing oil and gas province with high quality seismic available over prospects and leads that gives ADX plenty of follow up potential.
To top it off, the permit is close to existing onshore pipelines, a strong gas market and oil equivalent pricing conditions, making it commercialisation of any discoveries both quick and economically attractive.
ADX holds a 40% stake (operator) in Chorbane while Gulfsands Petroleum (LON: GPX) also holds 40%. The remaining 20% is split equally between XState Resources (ASX: XST) and Verus Investments (ASX: VIL).
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