ADX Energy : Dougga Gas Discovery Independent Evaluation Results

Source Press Release
Company ADX Energy Ltd 
Tags Exploration, Strategy - Upstream, Upstream Activities
Date July 16, 2018

Dougga Gas Discovery - Independent Evaluation Results

  •  405 Bscf Gas Note 1 and 31 MMbbl Condensate and 32 MMbbl LPG (totalling 122

    MMBOE Note 3) Unrisked 2C Contingent Resources for the Dougga Discovery, and

  •  762 Bscf and 37.5 MMbbl Condensate (totalling 169 MMBOE Note 3) Unrisked Best Estimate Prospective Resources for the Dougga SW Prospect with 41% in Permit

ADX Energy Ltd (ASX Code: ADX) is pleased to announce that an independent evaluation of the Dougga Gas Condensate discovery (Dougga) and potential extension of Dougga - the Dougga South West prospect (Dougga SW) offshore Tunisia has been completed by ERC Equipoise Pte Ltd (ERCE) on behalf of ADX. ADX is the 100% equity holder and operator of the Kerkouane license. For Dougga, the evaluation report includes a review and evaluation of geological and geophysical data, reservoir engineering modelling data and recovery factors, Contingent Resources quantification, development concept maturity, facilities engineering review, project schedule, project flow assurance and the suitability of the planned appraisal well. For the adjacent Dougga SW undrilled prospect, the evaluation includes the review and evaluation of geological and geophysical data, Prospective Resources quantification and risking. The evaluation report by ERCE does not include other exploration potential within the Kerkouane license.

It is ADX's intention to drill and test the Dougga Sud appraisal well during Q1 2019utilising the Noble Globe Trotter II drilling rig and ADX are in discussion with a number of parties regarding the funding of the well. The report will be used by ADX in support of ongoing financing discussions for the Dougga Sud appraisal well as well as a potential compliance listing of ADX on the Alternative Investment Market ("AIM") of the London Stock Exchange (LSE)Note 2. ERCE is an international, independent consultancy specialising in geoscience evaluation, engineering and economic assessment.

Key Highlights of findings from the ERCE Evaluation Report are as follows;

Dougga Discovery Evaluation

  •  Unrisked 2C Contingent Resources of 405 Bscf Gas Note 1 and 31 MMbbl Condensate and 32

    MMbbl LPG (totalling 122 MMBOE Note 3) at Dougga, a 63% increase over the last independent review by TRACS in 2011.

  •  The carbonate reservoirs are considered to be fractured; with resource recovery factors ranging from 63% to 79% being assumed.

  •  The liquids content comprises approximately 50% of the oil equivalent volumes.

  •  An unrisked 3C Contingent Resources upside potential of 227 MMBOE Note 3.

  •  The key appraisal objectives of the Dougga Sud well are appropriate.

  •  The development concept that has been selected with TechnipFMC and the level of design maturity, flow assurance and risk management adopted by ADX is considered appropriate for the appraisal phase of the project.

  •  Current project uncertainties have been addressed by assuming conservative inputs to critical elements of the facilities design concept.

  • 11. The gas resources estimates presented are gross raw gas and do not account for shrinkage fuel and flare or inerts.
  • 12. The MMBOE resources have been calculated by ADX using the oilequivalent conversion factors from the TRACS 2011 report.
  • 13. 41% has been used for low, best and high cases for the percentage of volumes within the Permit. This is based on the percentage of gross rock volume within the Permit, which is 38% for the low case and 44% for the high case; 41% the average which has then been used for all cases.

ADX and ERCE are in general agreement with the Dougga SW structural interpretation. The range in structural interpretation is shown above in Figure 2. The majority of the structure is defined on 3D seismic, with the southwestern area of the structure mapped on 2D seismic lines, and approximately 41% of the Prospective Resources are estimated to lie within the Kerkouane PSC. The reservoir parameters utilized by ERCE in its assessment are drawn from the assessment of the Dougga main area which ADX believes is an appropriate methodology given the proximity and depositional environment.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd