Italy

ADX Energy was awarded a license which includes The Nilde Oil Field offshore redevelopment project in the Strait of Sicily.

The Nilde Oil Field was prematurely abandoned in the 1980’s due to a sudden drop in oil price and the inability of the relatively primitive floating production system at that time to produce oil and water. Independent assessments indicate a substantial unrecovered oil resource is available for redevelopment.

The combination of modern production technology, highly productive reservoirs with high quality crude, shallow water depths and drill depths and favourable fiscal terms have the potential to yield excellent development economics and rapid paybacks.

ADX expects to be in a position to pursue the appraisal of the Nilde Oil Redevelopment project following the expected termination of a government moratorium in Q3 2021 by utilising funding provided by a farmout announced in late 2018.