ADX Energy Ltd reports a farmout has been executed for 10% of its 50% remaining interest in the Chorbane Permit, Tunisia with Verus Investments Limited (Verus). Under the terms of the agreement ADX will receive US$ 250,000 for back costs following execution of the agreement and a further US$1,100,000 by the 3rd of December 2010. The transaction represents a 2 for 1 farm-in deal plus back costs.

Verus will earn its interest upon completion of the drilling of Sidi Daher well which is expected to spud in January 2011. As previously announced ADX has already secured farm-outs with Gulfsands Petroleum Plc and Xstate Resources Ltd which are expected to fully fund ADX' share of drilling costs for the Sidi Daher well prior to this farmout. Proceeds from this farmout will therefore provide additional funding that can be utilized to fund other operations.

The farminee, Verus Investments Limited is an ASX listed company with exploration and appraisal interests onshore Texas USA.

The Sidi Daher prospect is located in the 2,428 square km large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil & gas infrastructure. A summary of the Chorbane Permit and the Sidi Daher prospect is attached to this ASX release.

Participant interests in the Sidi Daher -1 well will be as follows; ADX 40% Operator Gulfsands Petroleum Plc 40% XState Resources Ltd 10% Verus Investments Limited 10%

Note: The respective participant interests in the Sidi Daher well and the Chorbane Permit are based on the completion of all farmin obligations.

Tags: ADX Energy Ltd