ADX Energy (ASX:ADX) is all but set to test its key Sidi Dhaher-1 oil discovery in the Chorbane permit onshore Tunisia that can be quickly developed if commercial due to its proximity to existing infrastructure.
Sidi Dhaher has estimated mean contingent oil in place of 51 million barrels of oil though confirmation of recoverable volumes is contingent on the results of the well test.
ADX said the contract for the Dietswell Rig will be formally signed in the coming days and scheduling to move the rig and auxillary equipment to the well site is currently underway.
Key site personnel area already in place and an operational work program has been agreed and finalised by the joint venture with testing operations expected to start within three weeks.
Initial results are expected by the end of March 2012.
ADX is also preparing to carry out an extended production test to establish long-term flow performance in the event of a successful test.
Tunisian spring
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).