ADX farms out Romanian Play to RAG

ADX Energy Ltd has announced a farm in agreement has been executed Rohoel Aufsuchungs Gesellschaft (‘RAG’) in relation to Parta licence in Romania.

The Parta Permit covers an area of 1,221 km2 and is located in the southern Pannonian basin area of western Romania. It covers 7 excised oil and gas fields and is considered underexplored. Previously ADX has identified several conventional leads and prospects which are estimated to contain a total of 47 mmbls of oil and 480 bcf of gas (recoverable mean prospective resource potential). The main target depths are relatively shallow between 800 and 2000 metres.

RAG will make an upfront payment to ADX and be entitled to earn 50% interest in the Parta Permit upon a payment in lieu of past costs and a payment of a promoted share of future costs prior to the commencement of seismic operations. The forward work commitment for the Parta Permit requires the acquisition of 2D and 3D seismic and the drilling of three exploration wells. ADX will retain a 50% interest and operatorship.

A concession agreement for Parta was signed in January 2011 with NAMR (Agentia Nationala Pentru Resurse Minerale). A final ratification by the Romanian authorities has been delayed due the recent changes of the Romanian government and is expected in the near future.

The farm in agreement is subject to approvals by the National Agency for Mineral Resources of Romania.

The ongoing exploration activity on the ADX’ Romanian acreage is resulting in the identification of additional exploration potential. Romania represents an important growth opportunity in line with ADX’s ongoing strategy of focusing its resources on core areas which offer proven prospectivity, excellent fiscal terms and materiality. The remaining 8 prospecting permits are still being held by ADX at 100%.