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) remains confident its Parta permit in Romania and the enhanced Sicily Channel portfolio represent growth opportunities despite the disappointing result at Sidi Dhaher-1 well onshore Tunisia.
It will continue its strategy of acquiring assets with operatorship and large equity holdings where it can add value through its technical skills and farm down to provide funding for drilling.
However, the company has not written off its Chorbane permit onshore Tunisia, saying there were several undrilled opportunities that are independent of Sidi Dhaher‐1 and in addition to the deeper Jurassic gas potential confirmed by the Chaal 1 well in the adjacent Chaal permit.
It said the next phase of exploration in Chorbane is likely to focus on a set of prospects close to oil and gas discoveries and within the proven oil and gas kitchen area that exists in the central and eastern part of Chorbane.
ADX also noted the southern part of the Chorbane permit remained unexplored despite holding potentially large sized structures facing a prolific hydrocarbon generation kitchen area. However, this would require more seismic data acquisition to deliver drillable prospects.
The company said it will focus on delivering low cost, medium to low risk near term onshore production in a fiscally attractive regime; participate in large growth upside exploration and appraisal with high reward potential; fund its the majority of its exploration activities through industry farmouts; and maintain a balance of low risk and medium resource size projects with higher risk large resource projects.
ADX had secured Parta in 2011 and had in May this year secured Austrian private company and veteran Central European explorer and producer Rohoelaufsuchungsgesellschaft (RAG) as a farm-in partner.
RAG is earning a 50% stake in Parta by paying past costs and a promoted share of future costs prior to the start of seismic operations.
ADX is required to shoot 100 square kilometres of new 3D seismic and 100 kilometres of new 2D seismic as well as drilling 3 exploration wells.
The 1,221 square kilometre Parta concession contains 40 identified oil and gas leads that can be evaluated with low cost seismic and drilling programs.
Sicily Channel Permits, Offshore Tunisia
ADX has also started looking for a farm-in partner for its Sicily Channel permits where recent 3D seismic has identified a number of new exploration drilling opportunities that complement the existing Dougga prospect.
ADX aims to conclude the farmout process by the end of 2012 and prepare for drilling the next well in 2013.
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