Ahead of a planned appraisal well, ADX Energy (ASX: ADX) has released the independent evaluation results of its Dougga gas condensate discovery offshore Tunisia, including a 63% increase in best estimate contingent resources.
The Dougga discovery, as well as its potential extension, the Dougga South West prospect, is located within ADX’s wholly-owned Kerkouane licence.
The company is planning to drill and test an appraisal well on the Dougga Sud prospect during the first quarter of 2019. It has already contracted Noble Drilling’s drillship Globe Trotter II to provide the drilling services and is in talks with several parties regarding funding of the well.
ADX engaged energy consultancy ERC Equipoise to complete the evaluation on both the discovery and the South West prospect, which included a review of geological and geophysical data, reservoir engineering modelling data, contingent resource quantification, development concept maturity, facilities engineering, project schedule, the assurance of project flow and the suitability of the planned well.
The company intended to use the report to support its ongoing financial discussions, as well as a potential compliance listing of the company on the London Stock Exchange’s Alternative Investment Market.
The report estimated an unrisked 2C (best estimate) contingent resource of 122 million barrels of oil equivalent at the Dougga discovery, or 405 billion cubic feet of gas, 31MMbbls of condensate and 32MMbbls of liquified petroleum gas (LPG). This represents a 63% increase on a previous independent review conducted in 2011.
At the Dougga South West prospect, an unrisked best estimate prospective resource of 169MMbboe was calculated, or 762Bcf of gas and 37.5MMbbls of condensate.
About 41% of this prospect is estimated to lie within ADX’s Kerkouane permit, with the Dougga discovery and South West prospect believed to form a single, connected structure.
In addition, the report stated the selected development concept and the level of design maturity, flow assurance and risk management adopted by ADX was considered appropriate for the appraisal phase of the project.
ADX executive chairman Ian Tchacos said the resource estimates enhanced the credibility of Dougga and justified the company’s intended appraisal program.
“This independent evaluation supports ADX’s view that the Dougga gas condensate discovery is a potentially viable and important strategic resource with further upside potential identified at the relatively low risk Dougga SW prospect in a country that is supportive of hydrocarbon development and has a desperate requirement for gas, LPG and condensate,” he said.
ADX shares were up 8.33% to A$0.013 on the news by midday trade.