Asset Highlights

  • Discovered gas resource with high liquids content
  • Independent assessed mean resource of 74 MMboe (196 bcf and 42 MMbbls)
  • Located in pro development Tunisian jurisdiction
  • Proximal to onshore processing, strong market and pricing conditions
  • Follow up exploration potential defined on 3D seismic and other undeveloped resources provide tie in opportunities

Background

Shell discovered the Dougga gas field in 1981 at a time when gas was of little value and condensate stripping not a readily available technology. The field is located at a water depth that was near the technical limit for oil and gas development. The discovery well was tested confirming the presence of condensate rich gas

Dougga gas is liquids-rich but also contains approximately 30% CO2. Dougga is located in 328m of water approximately 45kms east of onshore Cap Bon in the prospective Gulf of Hammamet. The discovery is well positioned to access domestic and export infrastructure, is in good proximity to landfall for onshore gas processing and there is a strong demand for gas at internationally attractive pricing. The liquid-rich nature of Dougga gas enhances the commercial potential of any gas development.

In 2010 ADX commissioned TRACS International Consultancy Limited (TRACS) to undertake an update of the independent resource evaluation of the Dougga gas discovery and its potential for commercial development based on the latest results of the 3D seismic interpretation. Whilst the mean recoverable resources remain essentially unchanged at 74 mmboe, a significant upgrade in the P90 estimate to 46 mmboe has made the development project risk significantly more robust on the downside. The TRACS estimated mean total development project value (Net present value at 10% discount rate) assuming 90 US Dollar oil price is in the order of a Billion USD (970 MMUSD).

Planned Activites for Dougga

ADX is currently completing a pre-feasibility review of Dougga. This will incorporate the results from Kerkouane-Pantelleria 640km2 3D survey which covers the structure, revised cost estimates and alternative development options. ADX intends to drill an appraisal well on Dougga as soon as is practically possible with a view to establishing the commerciality of this potentially significant resource.