ADX reported that following the successful completion of running and cementing 13 3/8" casing at approximately 1000m the well is being drilled in a 12 1/4" hole.

Rig operations are currently drilling ahead at a depth of approximately 1,700 meters.

To date the well has encountered two potential reservoir zones in the Tertiary and Cretaceous respectively. Fortunately both targets have been encountered higher than originally prognosed.

As a result of the 13 3/8" casing being set deeper to isolate shallower sandstones and a fault intersection, it is now possible to safely drill the well deeper to a next casing point at 2000m.

At that depth the potential reservoir zones encountered so far will be evaluated by wireline logging prior to setting 9 5/8" casing. Weekly operations forecast:

•Drill ahead to next casing point (9 5/8" casing) at about 2000m •Run wireline logging operations - which amongst other things will determine hydrocarbon potential The Sidi Dhaher prospect 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.

The Sidi Dhaher well is targeting an Eocene reservoir with estimated prospective resources of 175 billion cubic feet (5 billion m³) of recoverable gas and a Cretaceous reservoir with estimated prospective resources of 44 million barrels (5.9 million tons) of oil. Additional targets exist in the deeper Douleb and Bireno reservoirs that produce oil and gas in the Guebiba-El Hajeb field immediately east of the Chorbane permit.

Participant interests in the Sidi Dhaher -1 well will be as follows;

•ADX Energy 40% (Operator) •Gulfsands Petroleum 40% •XState Resources 10% •Verus Investments 10%

Tags: ADX Energy Ltd