ADX to drill appraisal well off Tunisia in April 2019

Oil and gas exploration company ADX Energy has scheduled the drilling of the Dougga gas discovery appraisal well offshore Tunisia for April 2019.

ADX said on Monday that the Noble Globe Trotter II drillship would be available to drill the Dougga Sud appraisal well in April 2019, following completion of its current program in the Black Sea.

Well planning and approvals for drilling and testing are currently ongoing.

According to the company, the delay provides additional time for ADX to secure funding and secure long lead items for the Dougga Sud well.

ADX said that data room due diligence and funding discussions were ongoing with multiple parties to secure either a farmout, vendor finance, or a combination of both.

“The recently completed independent evaluation report by ERCE, in combination with the TechnipFMC concept study, provides potential funding partners with independent confirmation of the potential viability of the Dougga Gas Condensate Project by highly respected third parties,” the company said.

ADX added that it was still working to find a partner that can not only fund the appraisal well but, upon appraisal success, also enable the commercialization of Dougga. It is worth noting that, in addition to the Dougga resource assessments, ERCE estimated that the chance of the development of Dougga was 70 percent.

Ian Tchacos, executive chairman of ADX, said: “The independent assessment by ERCE that the Dougga project has a high chance of being commercialized is very positive from both a project and farmout perspective.

“ADX is now receiving strong funding interest at an asset level from a number of parties, and we anticipate securing funding commitments well in advance of rig availability enabling sufficient time to conclude planning, long lead item purchases, and regulatory approvals.”

Work program approvals

On December 2017 ADX announced that Tunisia’s Director General of Hydrocarbons (DGH) advised that the Hydrocarbon Consultative Committee (HCC) approved the application for a change of work program in the Kerkouane permit from an exploration well and the acquisition of 500 km2 of 3D seismic to the drilling and testing of the Dougga Sud appraisal well.

The revised work program, which replaces the previously unfulfilled permit work program during the first renewal period, is a precondition to the entry for a second renewal period of three years.

The HCC also agreed to reduce the proposed bank guarantee for the completion of the Kerkouane testing program from $8 million to $3 million and delayed its timing to the spudding of the Dougga Sud well which is seen by ADX as a significant concession by the HCC.