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ADX Energy to Suspend Lambouka -1 Discovery

Source: www.gulfoilandgas.com 9/8/2010, Location: Africa

ADX Energy has announced that the participants have agreed to the Operators proposal to suspend the Lambouka-1 discovery in a manner that is suitable for the future re-entry of the well.

The suspension of the well at this time with the ability for future re-entry will provide the opportunity to obtain additional hydrocarbon and reservoir information in a cost effective manner from an appropriately designed drill stem test of the Abiod Formation. Furthermore, given that the Lambouka structure has further up dip potential from the Lambouka-1 location, it is possible to re-drill the bottom section of the well with an appropriate orientation to test the crest of the structure as well as prospective porous sandstones encountered in the lower part of the well that are interpreted to be in closure at an up dip location.

ADX will continue to interpret the data obtained from the Lambouka-1 well in conjunction with 3D seismic data and provide further assessments of the potential of Lambouka discovery.

Participants in the Lambouka -1 well are: ADX 30% Operator; Gulfsands Petroleum 30%; Carnavale Resources 20%; XState Resources 10%; PharmAust 10%.

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