ADX Energy - AUDAX RESOURCES - A New Global Player - From Oil Explorer to a Producer
22nd March 2010
AuDAX accepts farm in offer from Gulfsands on the Chorbane Permit in Tunisia
AuDAX Resources Ltd (ASX:ADX) announces that it accepted a farm-in offer from Gulfsands Petroleum Plc („Gulfsands‟) for participation in exploration of the Chorbane Permit onshore Tunisia (see attached figure) where AuDAX is the operator and holds a 100% interest.
Gulfsands is a London based, international oil and gas exploration, development and production company with oil and gas production in Syria and the Gulf of Mexico and business development activities in Iraq.
Gulfsands will earn a 40% interest in the Permit by paying 80% of the cost of one exploration well to be drilled later this year. Finalisation of formal farm-in documentation for this transaction has yet to be completed and remains subject to board approvals of both AuDAX and Gulfsands.
The Chorbane permit is located onshore central Tunisia near the port city of Sfax and covers an area of 2,428 square km. It is surrounded by several producing oil fields and extensive oil & gas infrastructure. Previous exploration work in the Chorbane permit has identified a number of prospects and leads, the most prospective being a large tilted horst block (“Sidi Daher”) with multiple targets and recoverable prospective resources of 80 mmboe (AuDAX estimate).
Following signing of the Production Sharing Contract for the Chorbane Permit in September 2009, AuDAX has undertaken detailed evaluation work on data which has recently become available. This has led to a high ranking of the Sidi Daher prospect due to a seismic DHI (direct hydrocarbon indicator). In a conservative scenario the reservoir is a “gas only” accumulation within the bounds of the DHI and AuDAX estimates that the structure may contain a total of 175 Bcf of recoverable gas resource (probabilistic mean case).
The forward work commitment for the Chorbane permit requires the drilling of one exploration well.