Perth, Australia, Oct 2, 2014 - (ABN Newswire) - ADX Energy Ltd (ASX:ADX) (OTCMKTS:ADXRF) is pleased to provide this update on seismic operations and the geotechnical assessment of the Parta permit in Western Romania. ADX holds a 50% interest in the license and is the operator of the Parta permit.
Currently Identified Prospectivity
As reported earlier ADX has completed 90km 2D seismic within the Parta block and intends to acquire a further 110km following the finalisation of landowner access agreements. ADX and its partner also intends to acquire an additional 200km2 of 3D seismic to delineate further exploration prospects.
Based on 2D seismic data acquired to date and recent mapping work ADX has identified three exploration prospects. These prospects are deemed to be drill-ready based on the technical de-risking provided by seismic which has increased the chance of success and the attractive economics which would underpin a discovery.
Well economics are supported by relatively shallow target depths (800 to 2,000 meters), low drilling costs (< 2 MMUSD per well), availability of infrastructure, attractive fiscal terms and the proximity to European markets which would result in relatively modest discoveries delivering excellent returns on investment. As more modern 2D and 3D seismic data becomes available further prospects are likely to emerge.
Farm out Discussions and Acceleration of Drilling
While it was ADX's original intention to drill wells following the acquisition of additional seismic, given the existence of attractive drilling targets ADX and its partner now plan to fast track the drilling of at least two drillable prospects. ADX has commenced discussions with potential farminees which are active in the region with a view to commencing drilling in the second quarter of 2015.
The prospective resources for the top three prospects have been estimated by ADX as follows;
Prospective Resources(4) for the 3 top drilling candidates
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Gross(1) Prospective Resources LOW BEST HIGH
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GAS [bcf] 10.3 38.5 83.0
Oil [mmbls] 2.4 8.1 16.8
TOTAL in Mmboe(3) 4.1 15.0 31.6
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Net(2) to ADX Prospective Resources LOW BEST HIGH
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GAS [bcf] 5.2 19.6 41.5
OIL [mmbls] 1.2 4.1 8.4
TOTAL in Mmboe(3) 2.1 7.6 15.8
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(1)Gross: Prospective (recoverable) Resources attributable to 100% joint venture interest
(2)Net: Prospective (recoverable) Resources attributable to the ADX operated 50% joint venture interest
(3)MMboe: Million barrels of oil equivalent. Conversion factor: 1bcf of gas is 0.178 MMboe
(4)The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development.
Further exploration appraisal and evaluation is required to determine the existence a significant quantity of potentially moveable hydrocarbons.
Further Seismic Acquisition and Permitting
In parallel with preparation for drilling early next year ADX is continuing work on finalizing land access arrangements for further 2D and 3D seismic acquisition which will enable ADX to mature existing leads to prospect status for a further round of drilling potentially in late 2015.
ADX will provide further progress updates on farmouts, preparation for drilling operations and further seismic operations as they occur.
To view diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ADX-693524.pdf
About ADX Energy Limited:
ADX Energy Limited's (ASX:ADX) (OTCMKTS:ADXRF) strategy is two pronged; grow the European and North African oil and gas business in order to expose shareholders to the lucrative European energy market and to promote it's existing Australian energy, gold and base metal portfolio to capitalise on the current high commodity price environment.
ADX was incorporated in 1987 in order to explore for gold and base metals in Western Australia. The company has recently diversified from its initial minerals focus to include oil and gas exploration. To that effect ADX farmed in PEL 182 into the South Australian portion of the Cooper Basin in 2005.
ADX appointed Wolfgang Zimmer, an oil and gas industry professional with over 27 years experience, as Managing Director in late 2007 to grow the company’s oil and gas business. Subsequent director and staff appointments and the establishment of a European office have boosted the depth of oil and gas experience in the company and allowed the company to expand its oil and gas activities.
Currently ADX operates permits onshore and offshore Tunisia, offshore Italy and onshore Australia and holds an interest in a non operated block in onshore Romania.
ADX is also a participant and operator of a number of AMI's (Area/s of Mutual Interest) that enable it and its partners to efficiently act upon business opportunities.
Contact:
ADX Energy Limited
T: +61-8-9226-2822
F: +61-8-9226-5333
E: admin@adxenergy.com.au
WWW: www.adxenergy.com.au
Source:
ADX Energy Limited
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