ADX Energy has reported that a LOI (Letter of Intent) has been signed with DIETSWELL SA, for the provision of the Sedlar-160 drilling rig. Following bid clarification and final contract execution, the rig and equipment will be moved to the Sidi Dhaher-1 location and the well prepared for testing.

ADX has previously estimated the mean contingent oil in place resource for the Sidi Dhaher oil discovery to be 51 mmbbls. The confirmation of recoverable volumes and resulting potential reserves are contingent upon a successful well test with the objective of proving commercial flow rates and likely recovery factors.

The Sidi Dhaher discovery is located in the 2,428km2 large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil and gas infrastructure.

Participant interests in the Chorbane permit and the Sidi Dhaher -1 well are as follows; ADX Energy 40% Operator; Gulfsands Petroleum 40%; XState Resources 10%; Verus Investments 10%.

Tags: ADX Energy Ltd