Tunisia: ADX Energy Limited Renews Kerkouane License For Three More Years

ADX Energy Ltd announces that the Government of Tunisia has approved the renewal of the Kerkouane exploration license (“permis de recherche d’hydrocarbures”) and granted three more years for exploration and appraisal activities until 22 February 2014.

The exploration license can then be renewed for another three years.

ADX and its partners have committed to the following work program in order to obtain this renewal:

– Well test the Lambouka discovery

– Drill a well to a minimum of 2500 meters or drill to the Jurassic reservoir levels in case such a target is a viable economic prospect and can be identified on the newly acquired dual sensor 3D seismic.

– Relinquish 772 km2 of the license area. With that the new Kerkouane license comprises an area of 3080 km2.

The current license contains a number of large appraisal and exploration targets such as:

– Dougga gas condensate field (covered by 3D seismic )

– Lambouka discovery (covered by 3D seismic)

– Dougga-NW (“Son of Dougga”) prospect (covered by 3D seismic)

– Newly identified structural – stratigraphic prospects in the Pliocene section (partly covered by 3D, analogy to the very large offshore Sicily discoveries recently made by ENI and Edison)

– Several very large structural prospects typical for the overthrust area in the northern part of the license (covered by 2D seismic).

The following Joint Venture is participating in the Kerkouane permit:

– ADX: 60% Operator

– Gulfsands Petroleum Plc: 30%

– XState Resources Ltd*: 10%* (ASX:XST)

(*) XState has an option with ADX to increase XStates interest in Dougga to 20% under agreed farmin terms. If exercised ADX interest would decrease to 50%

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, January  18, 2011;