ADX reported at 0600 hrs Tunisian local time on August 26, semisub Atwood Southern Cross was drilling ahead at a measured depth of 2,511m.

Since the last operations report earlier this week, the Abiod Formation limestones which are the primary target for the Lambouka well have been encountered. The Abiod intersection was associated with some losses of circulation fluids, an increase in background gas shows and an anomalously high resistivity on the Measurement While Drilling (MWD) electric logs.

The current evaluation data is preliminary only and does not without additional information provide a reliable basis on which to interpret either reservoir quality or content. Consequently whether movable hydrocarbon saturations are present cannot be determined until a more comprehensive suite of evaluation logs are acquired. It is intended that these wire line electric logs will be run according to the approved well plan when the total depth for the well is reached.

Participants in the Lambouka -1 well are as follows:

•ADX 30% Operator •Gulfsands Petroleum Plc 30% •Carnavale Resources Ltd 20% •XState Resources Ltd 10% •PharmAust Limited 10%

Tags: ADX Energy Ltd