News listings
Equatorial Guinea Licence Round

energy-pedia general news

Italy flagItaly

Europe / Caspian / CIS >>> Italy

Italy: ADX Energy farms out Nilde Area permit offshore Italy to SDP Services


31 Oct 2018

Photo - see caption

Highlights

  • Drilling and Seismic Work Program Fully Funded to earn a 50% Interest and a 5% Net Profits Royalty
  • Farminee - SDP Services brings strong financial and operating capacity
    • An Oil and Gas Services Company with Onshore and Offshore Rigs, Seismic and Logging equipment
  • The Farmin by SDP significantly enhances the financial capability of ADX and the likelihood of Permit ratification by Italian Authorities
  • The transaction is conditional upon ratification of the Permit by the Italian Authorities
  • Subject to ratification ADX is now in a position to progress the appraisal of the highly profitable Nilde Oil field Redevelopment Project

ADX Energy has signed an agreement with SDP Services to farm out a 50% interest in the d 363 C.R-.AX Permit containing the Nilde Oil Redevelopment Project and the successfully tested Norma and Naila oil discoveries offshore Italy. SDP will fund the work program commitments of Audax Energy a wholly owned subsidiary of ADX up to a maximum of Euro 20.82 million to earn a pro-rata interest of 50% upon completion of funding. The transaction is conditional upon the Italian Licensing Authorities ratifying the License. Upon ratification of the License SDP will receive 5% net profits royalty interest attributable to any future production from the Nilde Field. ADX will remain operator of the license.

Photo - see caption
Location of Nilde field and Norma and Naila discoveries

SDP is a privately owned specialised Oil and Gas services company providing drilling, seismic, testing, hydraulic fracturing and logging services with offices in London. The company generates strong operating cash flow and profit as well as having a substantial balance sheet. The financial capability of SDP is particularly important to provide financial support to ADX with regard to ratification of the permit and future appraisal and development activities.

This Farmout transaction provides the financial support required by the Italian Licensing Authorities and places ADX in a strong position to seek ratification of the License.

Work Program Obligations

Audax was issued the d 363 C.R-.AX permit by the Regulatory Authority in May 2014.

A summary of the Permit work program submitted in 2014 are as follows;

  • Year 1 and 2) Seismic purchase and studies year 1 and 2 (Euro 300,000 est),
  • Year 3) Seismic acquisition (Euro 520,000 est)
  • Year 4) Drill a well (Euro 20,000,000 est). Note 1

Note 1: Well costs have reduced significantly since 2014, ADX current estimate to drill an appraisal well is approx. US$ 14 million.

Permit obligations commence once the license is ratified. ADX has already expended approximately Euro 950,000 which is significantly in excess of the year 1 and 2 work program obligations. Upon ratification ADX intends to accelerate the work program with a view to appraising the remaining resources in Nilde as soon as practically possible.

Ian Tchacos, Executive Chairman of ADX, commented:

'The Board of ADX is pleased to have secured this potentially important Farmout transaction with SDP Services. We expect that the funding support provided by SDP will break impasse with the Italian Authorities and lead to the long overdue ratification of the license. Upon ratification a substantial investment in the Nilde Re Development project has the potential to unlock substantial value for ADX and SDP shareholders. Nilde at current oil prices is potentially a very valuable project as outlined in the attached project summary and we now can start to look forward to getting back on track.'

Click here for full announcement and an overview of the Nilde Oil Redevelopment Project

Source: ADX Energy





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current deals: 1688
Completed deals: 5158

Company Profiles

Current Company Profiles: 2634

Corporate Activity

Current Corporate Activity articles: 3255

Companies Looking

Current number of articles: 425

Company Sales

Current Company Sales articles:1348

Geostudies

Current Geostudies articles: 633

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Geoespace
Lynx Information Systems
EP Consult Energies
KL Publishing
Government of South Australia
RSK Logo 149
energy365
OPC
count geophysics
Rose & Assocs 149
SLR Consulting logo
Bayphase
Union Jack Oil 149
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com