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Wednesday, May 11, 2011

ADX: Tunisian Govt Agrees to Extend Chorbane Permit

ADX: Tunisian Govt Agrees to Extend Chorbane Permit

Wednesday, May 11, 2011
ADX Energy Limited

ADX Energy Limited on Wednesday announced that the Tunisian authorities (Comite Consultatif des Hydrocarbures) have agreed to the extension of the current exploration period for the Chorbane permit by one year to the 12th of July 2012.

The Chorbane exploration permit contains the Sidi Dhaher prospect. All site preparations to drill the Sidi Dhaher exploration well have been completed and a ready to drill status has been achieved.

The Tunisian authorities (Ministry of Industry and Technology) have informed the Company during recent meetings in Tunis that the drilling of the Sidi Dhaher well is a priority and the required level of government authority supervision to ensure safe mobilization and efficient drilling operations will be provided. ADX anticipates that the appropriate measures for road clearance, traffic control and road safety will be available shortly.

ADX will continue to prepare for the drilling of the Sidi Dhaher well and provide a further update when a scheduled mobilization date is determined.

The Sidi Dhaher prospect is located in the 2,428km2 large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil and gas infrastructure.

Participant interests in the Sidi Dhaher -1 well will be as follows;
  • ADX Energy Ltd 40% Operator
  • Gulfsands Petroleum Plc 40%*
  • XState Resources Ltd 10%*
  • Verus Investments Limited 10%*
(*The respective participant interests in the Sidi Dhaher well and the Chorbane Permit are based on the completion of all farmin obligations.)

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