Courtesy of asteroider.Lambouka could be game changer for AuDax...

Courtesy of asteroider.

Lambouka could be game changer for AuDax BARRY FITZGERALD
May 26, 2010 - 8:22AM

The Sambuca oil/gas prospect in waters offshore Tunisia has been renamed Lambouka. It's the name of a local fish that authorities in Tunis thought was more appropriate for an oil prospect than the name of the occasionally fiery Italian liqueur served with three coffee beans one for health, one for happiness and one for prosperity.

Whatever its name, the oil/gas prospect is a potential game changer for AuDax Resources (ASX:ADX) and the rest of the junior groups involved. Certainly one capable of delivering them a two-bean sambuca sort of success - happiness and prosperity. We will know soon enough because Lambouka is to be put to the test with drill-bit next month.

Straddling the water between Tunisia and Italy, the $20 million well will test a structure with three potential pay zones rated as having a 50 per cent probability to contain a combined "resource potential 'of 270 million barrels of oil equivalent, 640 million boe if you like your chances with a 10 per cent probability. Needless to say, the leverage to success by AuDax and its partners to a discovery is something special.

The "resource potential" bit is important to recognise because that is all it is at this stage, potential. Still, the well is bound to generate interest among the punters once the well spuds in and the drill bit heads off to the first target zone.

AuDax (16 cents a share for a market cap of $54 million) is operator and has a 30 per cent carried interest in the well. The other ASX-listed partners in Lambouka are Carnavale Resources (CAV:20 per cent), PharmAust (PAA:10 per cent) and Xstate (XST:10 per cent through its deal to acquire the unlisted Bombara). Filling out the joint venture is the AIM-listed Gulfsands (30 per cent).

The drilling of Lambouka is the culmination of years of planning by AuDax managing director Wolfgang Zimmer, a seasoned oil man best known in this part of the world for once heading up OMV's push in to the Australia oil and gas scene. More recently, Zimmer has been joined at AuDax by former Nexus Energy chief executive, Ian Tchacos, as chairman.

They are a good combination. Zimmer likes to find things and Tchacos likes to build things. If Lambouka fails, Zimmer and Tchacos have made sure that it does not suffer from the one trick pony syndrome. There is an onshore Tunisia prospect with a 20-80 million barrel "recoverable" oil potential ready to be drilled in the fourth quarter, as well as follow up work to a 1980s gas/condensate discovery called Dougga back out in the Mediterranean to be done. A push in to Romania is also planned.

AuDax plans a name change to its ticker of ADX. The change reflects its move out of the minerals exploration game the remnant interests are to be floated off in to a new company and its focus on oil and gas. It is also in the process of raising $7.2 million from an underwritten one-for-six share issue at 15 cents a share. The new shares come with attached options on a one-for-two basis. Veritas is the underwriter.

http://www.theage.com.au/business/lambouka-could-be-game-changer-for-audax-20100526-wbkd.html