ADX Energy Limited (ASX:ADX) Announce Sidi Dhaher Operational Update.
The diverter, parts of the choke manifold as well as the surface circulation system has been pressure tested and is now fully functioning. The rig would now under normal circumstances be ready for a final audit and commencement of drilling operations within the next days. ADX has therefore already moved surface casing and mud chemicals for preparing the system for the top hole well section on site.
Given the recent extraordinary delays in sourcing equipment due to factors outside of ADX control, ADX are not prepared to allow the drilling operations to commence until all critical spare parts are on the rig site.
Whilst under normal circumstances most additional spare parts - if needed - could be sourced locally very quickly without delaying drilling operations or compromising safety and well integrity, there is a risk today that during a later phase in the drilling operations - especially when gas kicks are possible - critical spare parts are not available in time.
ADX has advised the drilling contractor that drilling operations will not commence until critical spare parts are actually available on rig site and fully tested. Since an adequate choke line cannot currently be supplied by the drilling contractor locally, this critical well control part has to be sourced from Egypt. This unfortunately is causing another incremental delay in the spud date.
Participant interests in the Sidi Dhaher -1 well will be as follows;
- ADX Energy Ltd 40% Operator
- Gulfsands Petroleum Plc 40% * (LON:GPX)
- XState Resources Ltd 10% * (ASX:XST)
- Verus Investments Limited 10% * (ASX:VIL)
*Note: The respective participant interests in the Sidi Dhaher well and the Chorbane Permit are based on the completion of all farmin obligations.
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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|Date:||Aug 22, 2011|
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