ADX Energy (ASX: ADX) expects to start well test operations at the Sidi Dhaher-1 oil discovery, onshore Tunisia, in the next two weeks, subject to the arrival of critical equipment onsite.
Extensive equipment function testing is underway prior to full mobilisation to the Sidi Dhaher site, and mobilisation of key personnel is mostly complete.
Mean contingent oil in place resource volume for the Sidi Dhaher oil discovery has been estimated at 51 million barrels. Well testing will aim to confirm the recoverable volumes and resulting potential reserves, and identify commercial flow rates and recovery factors.
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.
This 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.
ADX holds a 40% stake in Chorbane while Gulfsands Petroleum (LON: GPX) holds another 40%. The remaining 20% is split equally between XState Resources (ASX: XST) and Verus Investments (ASX: VIL).