Tunisia: ADX Energy Limited Provides Lambouka-1 Well Preliminary Resource Estimates

ADX Energy Limited  announced that it has completed an initial evaluation of the Lambouka-1 well results and has generated a preliminary resource estimate for the Lambouka gas discovery.

The mean recoverable gas resource is estimated to be 309 BCF with the potential for significant associated condensate volumes.

The resource evaluation is based on the incorporation following data:

– a comprehensive set of LWD and wire line log data

– gas chromatography data acquired during the Lambouka #1 drilling campaign; and

– an updated 3D seismic interpretation incorporating geological data acquired during the drilling of the Lambouka-1 well.

ADX has utilised a number of third party log analysis experts to review log data and contribute to this evaluation.

While condensate estimates have not been included in the above table, gas chromatograph measurements taken while drilling indicate condensate rich gas is present at Lambouka. Using a similar gas condensate ratio to Dougga for Lambouka would result in condensate resources of 24 MMBBLS based on the mean resource estimate.

The above resource estimates relate to the Abiod and Allam carbonate reservoirs, which are interpreted as hydrocarbon bearing at the well location. Only the porosity of the reservoir matrix has been included in this resource calculation. Fracture porosity which is evident from the well data may be significant and may add considerable additional resource volume that has not been included in these preliminary estimates but will be the focus of ongoing studies.

Beneath these carbonate reservoirs, a water wet sandstone reservoir was encountered at the bottom of the well which has the potential to be hydrocarbon bearing further updip in the Lambouka structure. This material upside potential is however not incorporated in the current resource estimate.

Unlike the nearby Dougga field which contains relatively high proportions of CO2, it is assumed that no CO2 is present at Lambouka given that CO2 was not detected on measuring equipment during the drilling of the well.

Forward Work Program:

The comprehensive Lambouka dataset will be further evaluated over the next months in further detail. In order to move resources into a reserves category, a successful well test recovering reservoir hydrocarbons to surface is required together with a commercially viable development plan.

It is planned to re-enter Lambouka-1 then sidetrack and test the Abiod and Allam formations with a specifically designed Abiod reservoir flow test.

ADX believes that a Lambouka test can be best accomplished in conjunction with a Dougga field appraisal well and a possible exploration drilling campaign in 2011, targeting further potential identified on the large high quality 3D seismic dataset that was acquired prior to the drilling of Lambouka.

Dougga and Lambouka

The Dougga field contains audited mean recoverable contingent sales gas resources of 196 bcf and 42 mbbls of associated condensate and LPG’s. The resource potential of Dougga is currently being reviewed, utilising the newly acquired 3D seismic data set. The combination of Dougga (ADX interest 60%) and Lambouka enhances the potential of a commercially attractive gas condensate development aggregating the resources of both fields. Any development would be assisted commercially by the attractive gas pricing conditions in Tunisia and the significant liquid volumes.

ADX will continue to update its shareholders in relation to ongoing Lambouka studies, the results of the Dougga resource review and prefeasibility studies which are being undertaken in relation to Dougga.

The Dougga prefeasibility work will also incorporate the potential addition of Lambouka.

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%

Notes:

1. The respective interests in the Lambouka Prospect area in the Kerkouane Permit and the Pantelleria Licence are based on the completion of all farmin obligations.

2. ADX’ interest is held via wholly owned subsidiary Alpine Oil & Gas Pty Ltd and pending completion of the farmin obligation, Alpine will continue to hold 100% of the Pantelleria Licence.

3. XState Resources Limited interest is held via wholly owned subsidiary Bombora Energy Limited.

About: ADX Energy Limited

The company’s 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.

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Source:ADX Energy,September 23, 2010,