ADX Energy Ltd

Alpine and Kairiki agreed to buy Stratic's 40% of South Craiova (Romania) and 100% of Chorbane (Tunisia), each for US$1m cash split 50/50. Alpine would get 20% of South Craiova. Both deals are conditional; the first projects from the Alpine tie-up.

asset acquisition disposition

Enterprise Energy confirmed a confidential farm-in to PEL-182 with AOC and AuDAX. It is conditional on Eagle Bay's pre-emptive rights (deadline 28 November) and ministerial approval. No terms are given, so the effect on AuDAX's 49.9% is unclear.

farm in farm out agreement

AuDAX agreed to buy Alpine Oil and Gas for 16m shares, adding a free-carried Romanian study interest and a Tunisian exploration partnership. Dr Wolfgang Zimmer is proposed as managing director, Gary Roper chairman, with Leith Beal leaving. A shift beyond its Cooper Basin and WA base.

business combination

View Resources announced a farm-in to AuDAX's Karra tenements at Bronzewing South, Western Australia. View can earn 51% by spending $1.5m over four years, and a further 19% (70% total) by spending another $1m. This adds to the existing View relationship at West Yandal.

farm in farm out agreement

Vanessa-1 ST-1 was cased with 7-inch casing and suspended as a future gas producer; the rig was released 17 July. Sidetrack logs show extra Patchawarra gas sands, to be tested later. The operator says the pre-drill 15 Bcf objective appears achieved and may be exceeded.

drilling result

AuDAX placed 17.35m shares at 7 cents to sophisticated investors, raising about $1.2m with no fees. Funds cover its share of the extra Vanessa completion costs and working capital, the same 7c price as the February placement.

capital raising announcement

Vanessa-1 is a gas discovery. Drill stem tests flowed an estimated 4.4 MMscfd from the Epsilon and 2.8 MMscfd from the Toolachee; a third test failed, suspected tool malfunction. Casing will be run and the well suspended as a possible gas producer. AuDAX holds 49.9%.

drilling result

Vanessa-1, the gas prospect with a 3,250m planned depth, spudded 12 May 2007 and was at 770m in surface hole. It follows the Sarahlyn-1 dry hole.

drilling spud

Sarahlyn-1 is a dry hole: logs show no economic hydrocarbons, with zones water wet or too tight. It was plugged and abandoned. The rig moves to Vanessa-1 around 12 May, and the JV approved a $500,000 ISIS Petroleum review.

drilling result

Sarahlyn-1 spudded 16 April 2007, the first PEL-182 well since Emily-1 in January 2006. It is drilling surface hole at 80m toward a planned 2,730m depth.

drilling spud

AuDAX placed 15.5 million shares at 7 cents to raise about $1.085m, to fund its share of the Sarahlyn and Vanessa wells and working capital. Dr Peter Barber joins as technical non-executive director, replacing Ian Chalmers. The price is well below January 2006's 16 cents.

capital raising announcement

The White Sands farm-in and drilling deed is terminated and White Sands has appointed an administrator. The operator signed a letter of intent with Century Drilling for two PEL-182 wells plus an option for two more, with Rig 3 available from 25 February 2007. This ends the White Sands rig plan.

material agreement termination

Falcon Minerals can earn 70% of the nickel and associated base metal rights at the Marymia project by spending $1.75m within 5 years, with at least $150,000 in the first 12 months. AuDAX keeps all gold rights.

farm in farm out agreement

After a failed first test, Emily-1's second test over 1,901-1,907.5m recovered 33.6 barrels of fluid, only 1.3 barrels of it light oil. The JV will case and suspend the well and perforate the upper sand later with a smaller rig.

well test result

Emily-1 recorded a fair oil show at 1,901.5m near the base Birkhead/top Hutton, in the primary objective, and the zone warrants testing. Rain closed roads and blocked test equipment, so testing is deferred to wireline logs and a possible later test. Well is at 2,027m.

drilling result

AuDAX placed 6.9 million shares at 16 cents with free attaching options exercisable at 20 cents by 31 December 2008, raising $1,104,000 from sophisticated investors. Funds go to further Cooper Basin drilling and seismic.

capital raising announcement

Emily-1 spudded on 7 January 2006 and was drilling surface hole (448m at report time) towards a planned 2,364m. This starts the PEL-182 drilling programme in which AuDAX holds 39.9%.

drilling spud

Operator Eagle Bay announced Emily-1, the first well in the new PEL-182 Cooper Basin permit, with AuDAX holding 39.9%. Pre-drill estimate is 10.5 million barrels of recoverable oil (P50), only if oil is present. Target depth is 2,364m.

drilling scheduled