ADX Energy (ASX: ADX) expects to start in about 16 days, flow testing operations at its key Sidi Dhaher-1 oil discovery in the Chorbane permit onshore Tunisia after signing the contract for the rig.
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.
The Dietswell Sedlar-160 drilling rig and auxiliary equipment are currently being audited and critical equipment will be tested in the storage yard in the city of Sfax prior to mobilisation to the Sidi Dhaher-1 well site.
Initial results from the test, which has been approved by Tunisian petroleum regulator ETAP, are expected to be available by mid April 2012.
ADX is also continuing design work for an extended well test program that will take place in the event of successful oil flows during the initial test period.
This will provide additional production and reservoir performance information that will be used for field development and planning purposes.
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).