Firstly I'd like to point out that any potential impact of...

Firstly I'd like to point out that any potential impact of political tensions in Tunisia have been significantly overblown in respect to ADX Energy. The 20% correction in share price since the Tunisia issue was publicised is laughable and presents a brilliant buying opportunity for those who have conducted their due dilligence on this company. A large portion of the countries GDP relies on foreign capital, furthermore there is large demand for gas in Tunisia and the push from the relevant government authorities has been massive to commercialise the Sidi Daher.

The Sidi Daher exploration zone is surrounded by a large amount of infrastructure and massive producing onshore gas and oil fields. Please refer to the comments of Richard Malcom - CEO of Gulfsands UK. It is the expectation that the well could have anywhere from AUD $1.2b-$2.5b of Gas and up to 300mboe

"As the prospect is reasonably close to existing infrastructure, a commercially attractive discovery will have the potential to be developed and brought into production quite rapidly."

http://www.iii.co.uk/investment/detail?code=cotn:GPX.L&display=discussion&id=7589054&action=detail




ADX is currently trading at 10c of which we could ascribe half that value to cash and the stake in the mining assets.

At present im valuing carrying Chorbane at 15c/share in my valuations based on a 40% WI, a 32.7 mmboe gross reserve and a 65% chance of success - effectively valuing a boe in the ground at $4.4,

Assuming a successful find and the proximity to a gas plant - you could envisage chance of success rapidly moving towards 100% if the exploration well is successful we could move the Chorbane valuation up to 25c without any real change to underlying economics - if the find is much bigger than the 33mmboe gross - then you start to see much more upside as would mean both higher reserves and probably higher economics/boe.

What is most important is that Sidi Daher can be converted into a major producing well within 12 months which presents incredible value and upside to shareholders.

There is so much value here in Sidhi Daher, not to mention the other discoveries which will be tested later this year. Paterson securities have put a 45c valuation on Sidi Daher alone - please refer to their African research report which i posted a couple of weeks back.

Furthermore the commecial pre feasibility study which is now due any day on Dougga will also provide significant upside momentum to the share price shall the findings confirm those of ADX.

Excellent investment opportunity IMO of course DYOR