Tunisia: ADX Energy Limited Announces Discovery of Oil Stains at Lambouka-1

ADX Energy Limited rig operations as at 0600 hrs Tunisian local time (GMT) on the 29th of August were at a measured depth of 2,691 m.

In the 27th August “Lambouka-1 Interim Update” it was reported “losses of circulation fluids, an increase in background gas shows and an anomalously high resistivity on the Measurement While Drilling (MWD) electric logs” were encountered in the wells primary target, the Abiod Formation.

Further drilling through the Abiod reservoir section has revealed the presence of pinpoint dull yellow fluorescence and oil stains in the (water based) drilling mud showing bright yellow fluorescence. Whilst this result is encouraging it cannot without further evaluation be interpreted as proof of the presence of producable hydrocarbons.

This result in combination with the increased background gas shows reported earlier in the Abiod formation, provides further justification for undertaking a comprehensive electric wire line log evaluation program which will include down hole reservoir formation fluid sampling with an MDT tool (Modular Formation Dynamics Tester).

ADX will continue to report drilling results from the Lambouka-1 well as they occur.

Participants in the Lambouka -1 well are as follows (note 1);

– ADX (note 2) 30% Operator

– Gulfsands Petroleum Plc (LON:GPX) (PINK:GFPOF): 30%

– Carnavale Resources Ltd (ASX:CAV): 20%

– XState Resources Ltd (ASX:XST): (note 3) 10%

– PharmAust Limited (ASX:PAA): 10%

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Source: AdxEnergylimited, August 30, 2010,