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)continues to progress towards testing of its Sidi Dhaher-1 oil discovery at the Chorbane licence, onshore Tunisia, with operations focusing on ensuring the perforating guns are in the right position.
The company said last night the downhole test string assembly was successfully run in to the hole and pressure tested and that wireline logs are being run to ensure the perforating guns are correctly positioned over the reservoir intervals to be tested.
Once this is confirmed, the guns will be fired and the well will be in direct communication with the oil bearing reservoir.
The well test will then commence and ADX will attempt to flow the well without acid stimulation or artificial lift.
The Sidi Daher testing is aimed at confirming the recoverable volumes and resulting potential reserves as well as identifying commercial flow rates and recovery factors.
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.
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.
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% operating stake 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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