ADX Energy (WKN: 875366): Millionenchance?????

ADX Energy set to start flow testing of Sidi Dhaher oil discovery in Tunisia

ADX Energy (ASX: ADX) is making its final preparations to test its key Sidi Dhaher-1 oil discovery at the Chorbane licence, onshore Tunisia, with the test rig now on site.

Well testing will aim to confirm the recoverable volumes and resulting potential reserves, and identify commercial flow rates and recovery factors.

Detailed interpretation and analysis of reservoir fluid samples recovered during drilling had indicated a good quality Bireno carbonate reservoir with an estimated 30 metre oil column.

This formation has proven very productive in several nearby fields.

Log analysis has also indicated potential pay in the Cherahil formation, which will be tested if the Bireno formation test results are unfavourable.

A successful test will lead to an extended well test program to provide additional production and reservoir performance information that will be used for field development and planning purposes.

Sidi Dhaher has estimated mean contingent oil in place resource volumes of 51 million barrels.

The 2428 square kilometre Chorbane permit has all the hallmarks of a highly prospective oil and gas asset.

It contains large undrilled structures in a producing oil and gas province with high quality seismic available over prospects and leads that gives ADX plenty of follow up potential.

To top it off, the permit is close to existing onshore pipelines, a strong gas market and oil equivalent pricing conditions, making it commercialisation of any discoveries both quick and economically attractive.