AuDAX Resources signed a Memorandum of Understanding on behalf of the joint venture with PGS Overseas AS, Norway for participation in exploration of the offshore permit G.R15.PU (Pantelleria) within Italian waters and the contiguous offshore permit Kerkouane in Tunisian waters. AuDAX is the operator and holds a 70% interest and Kairiki holds a 30% interest.

PGS is an industry recognized, highly regarded, global seismic contractor with state-of-the-art seismic acquisition and processing capabilities. PGS would earn a 15% interest in the Permits by paying 30% of a significant future exploration work program. The MOU is subject to a number of conditions precedent including the signing of a farm in agreement.

The execution of the farm-in agreement would be subject to PGS satisfactorily concluding due diligence, all necessary government approvals and formal documentation. The parties will use reasonable endeavors to execute the farm-in agreement within three months of the date of this MOU.

Previous exploration work within the Pantelleria and Kerkouane Permits has identified a number of prospects and leads, the most prospective being a drill-ready prospect extending west into the adjacent Kerkouane Permit across the Italian-Tunisian maritime border. This structure appears to be one of the largest undrilled structures in the Mediterranean Sea.

Tags: AuDAX Resources, PGS