Under the terms of the farm out ADX will receive a cash payment of US$200,000 on or within 10 days of approval from Tunisian petroleum regulator L'Entreprise Tunisienne d'Activités Pétrolières (ETAP), which has already being received.
ADX will receive a further US$700,000 upon the earlier of January 31, 2013 and applicable government approval for the farm-in and a further US$300,000 within 10 days of a request to Rift Basin in accordance with the work program and budget for the planned seismic acquisition.
This transaction is in line with ADX's strategy of focusing its activities and its resources onshore Romania, offshore Tunisia in the Sicily Channel and central Europe.
ADX will retain a 15% participating interest in Chorbane.
Rift Basin International
Rift Basin International is a wholly-owned subsidiary of Rift Basin Resources (CVE: RIF), formerly Mayen Minerals, a Tier 2 mining issuer is seeking to become an oil and gas issuer.
The farm-in represents Rift Basin's first oil and gas acquisition.
The Chorbane permit is located onshore central Tunisia near the port city of Sfax. The permit is surrounded by several producing oil fields and extensive oil and gas infrastructure.
Operator Gulfsands plans to start a seismic acquisition program costing about US$2 million this year.
Following processing and evaluation of the seismic data captured in the upcoming work program, Gulfsands expects to drill at least one well on the Chorbane permit during calendar year 2014.
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