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ADX Provides Operational Updates on Sidi Dhaher Well

Source: www.gulfoilandgas.com 8/22/2011, Location: Africa

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ADX Energy Ltd provides the following update on preparations for drilling of the Sidi Dhaher well on the Chorbane licence, onshore Tunisia. The diverter, parts of the choke manifold as well as the surface circulation system has been pressure tested and is now fully functioning. The rig would now under normal circumstances be ready for a final audit and commencement of drilling operations within the next days. ADX has therefore already moved surface casing and mud chemicals for preparing the system for the top-hole well section on site.

Given the recent extraordinary delays in sourcing equipment due to factors outside of ADX control, ADX are not prepared to allow the drilling operations to commence until all critical spare parts are on the rig site. Whilst under normal circumstances most additional spare parts – if needed - could be sourced locally very quickly without delaying drilling operations or compromising safety and well integrity, there is a risk that during a later phase in the drilling operations – especially when gas kicks are possible - critical spare parts are not available in time.

ADX has advised the drilling contractor that drilling operations will not commence until critical spare parts are actually available on rig site and fully tested. Since an adequate choke line cannot currently be supplied by the drilling contractor locally, this critical well control part has to be sourced from Egypt. This unfortunately is causing another incremental delay in the spud date. Participant interests in the Sidi Dhaher -1 well will be as follows;
ADX Energy Ltd 40% Operator
Gulfsands Petroleum Plc 40%
XState Resources Ltd 10%
Verus Investments Limited 10%

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