Gulfsands Petroleum Plc (LON:GPX) Exercise Option To Increase AuDAX Resources Limited (ASX:ADX) Sicily Channel Farmin Interest To 30%
Perth, June 7, 2010 AEST (ABN Newswire) - AuDAX Resources Limited (
ASX:ADX) (PINK:ADXRF) is pleased to announce that Gulfsands Petroleum Plc (LON:GPX) ('Gulfsands') has exercised its option to increase its working interest to 30% participation in AuDAX's two contiguous offshore Exploration Permits, G.R15.PU and Kerkouane (the "Permits") which are together described here in as the Sicily Channel Exploration Permits (the 'Farmin Agreement').
Gulfsands is listed on the Alternate Investment Market of the London Stock Exchange and has oil and gas production, exploration and development activities in Syria, Iraq and the U.S.A.
The Kerkouane Permit is located offshore northeast Tunisia and described in the figure below together with G.R15.PU (the "Pantelleria Licence") which is located in adjacent Italian waters.
Pursuant to the Farmin Agreement Gulfsands is entitled to increase its farmin interest from 20% (as previously announced) to 30% upon review of the recently acquired 3D seismic program over the Sicily Channel Exploration Permits. Following its election, Gulfsands will earn a 30% interest in the Kerkouane Permit by paying varying but "promoted" proportions of the costs of the recently acquired 3D seismic programme and the planned Lambouka exploration well.
The Lambouka -1 exploration well is due to commence drilling in the second half of June 2010.
Following completion of all farmin obligations, the respective interests in the "Lambouka Prospect" being the limited area defined to be over the Lambouka prospect within both the Kerkouane Permit and the Pantelleria Licence, will be as follows:
AOG 30% (operator)
Gulfsands 30%
Bombora 10%
Carnavale (ASX:CAV) 20%
PharmAust (ASX:PAA) 10%,
Following completion of Gulfsands' and Bombora's farmin obligations the respective interests in the remainder of the Kerkouane Permit (outside of the Lambouka Prospect), the Kerkouane production sharing contract and the Pantelleria Licence will be as follows:
AOG 60% (operator)
Gulfsands 30%
Bombora 10% (with an option to acquire a further 10% from AOG)
Tunisian government approval to move the "Atwood Southern Cross" drilling rig onto location at the selected Lambouka-1 well location is expected shortly. Tow vessels are on route to Tenerife in the Canary Islands to begin the tow of the Southern Cross. The gross cost of the Lambouka exploration well is estimated at approximately A$20 million with drilling anticipated taking approximately 30 days.
AuDAX has estimated the mean prospective resource for the Lambouka Prospect at 270 million barrels oil equivalent ("MMBOE") with the primary objectives for the well being the Miocene aged Birsa Formation and the Cretaceous aged Abiod Formation. The remaining forward work commitment for the Kerkouane permit requires the drilling of only one exploration well. AOG, a subsidiary of AuDAX, has entered into a drilling contract with a subsidiary of Atwood Oceanics Inc to provide the "Atwood Southern Cross" semi-submersible offshore drilling unit to drill the "Lambouka" exploration well on the Lambouka Prospect with an expected spud date in the second half of June.
For the complete AuDAX Resources announcement including figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/63027-ASX-ADX-493558.pdf
About ADX Energy Limited
ADX Energy Limited's (
ASX:ADX) (OTCMKTS:ADXRF) is an Australian Stock Exchange (ASX) listed International Energy Explorer which is soon to become a Producer. The Company's Geographical focus is Onshore Europe and Offshore Mediterranean with a portfolio consisting of recently acquired Production as well as Appraisal, Development and Exploration Assets. ADX's interests are located in Romania, Italy, Tunisia and most recently Austria. The Company's immediate focus is on low cost, low risk, profitable resource commercialisation opportunities onshore and higher cost higher reward offshore projects in the longer term. The Company is headquartered in Perth, Western Australia with additional operating offices in Bucharest (Romania) and soon to be Vienna (Austria). The Company also has representative offices in Italy and Tunisia.
ADX Energy's vision is to establish a stable cash producing platform onshore Europe and develop a number of rapid resource to reserves opportunities as well as low risk exploration potential with access to infrastructure in favourable fiscal and operating environments.
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