ADX Estimates 309 Bcf of Recoverable Gas at Lambouka

ADX 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 estimates of recoverable resources at Lambouka - P90 P50 Mean P10 

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 believed 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, utilizing 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;

  • ADX 30% Operator
  • Gulfsands Petroleum Plc 30%
  • Carnavale Resources Ltd 20%
  • XState Resources Ltd 10%
  • PharmAust Limited 10%