Market Update – May 2012Page 2Chorbane Investment – Sidi Dhaher...

Market Update – May 2012
Page 2
Chorbane Investment – Sidi Dhaher Well - Oil Discovery
10% Working Interest (WI)
Operator: ADX Energy Limited (ASX code: ADX)
During the drilling of the Sidi Dhaher discovery, several potentially productive formations were encountered. Reservoir fluid samples recovered confirmed the presence of oil in the deeper Bireno formation. Detailed interpretation and analysis indicated a good quality Bireno carbonate reservoir with an estimated 30m oil column. The Bireno formation in several nearby fields has proven very productive.
Log analysis also indicated potential pay in the Cherahil formation. In the event the Bireno test results are unfavourable VIL expects to test the Cherahil formation.
Incorporating the well information, the operator revised the prospect structure map and determined by using probabilistic methods the following estimates of the Original Oil in place (OOIP).
P90 OOIP 13 million barrels
P50 OOIP 37 million barrels
P10 OOIP 110 million barrels
Statistical Mean OOIP 51 million barrels
Well Testing Progress
ADX announced 26 March 2012 that the testing rig had been contracted and that initial test results were expected by mid April 2012. Due to local issues and rig equipment and services delays that the mobilisation to site and subsequent testing activities had been delayed. A progress update will be available shortly.
Confirmation of recoverable reserves and a resource estimate in the Bireno is contingent on the success of the planned well test.
Should Sidi Dhaher be declared commercial, the prospectivity and potential of the 2,428 km2 Chorbane block will be considerably enhanced. In addition, subject to declaration of commerciality it is likely the operatorship of the block will be transferred to Gulfsands Petroleum Plc.