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ADX Energy (ASX:ADX) potential to ratify licence in Sicily channel

ASX News, Energy
ASX:ADX      MCAP $43.88M
30 August 2022 15:41 (AEST)

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ADX Energy (ADX) has been offered the opportunity to ratify its gas exploration licence held in the Sicily channel, offshore Italy.

The ratification is subject to a number of conditions, including that only the gas potential within the licence area is commercially exploited.

ADX has undertaken technical work, which it said had highlighted the “excellent” shallow gas prospectivity of the shallow water license.

Further, the company has mapped several prospects and leads based on existing 2D seismic data. ADX said the best technical prospective resource potential of five high-graded prospects was 369 billion standard cubic feet.

ADX will submit to Italian authorities in October a work program committing to seismic reprocessing and the option to acquire 2D seismic and 3D seismic data.

Further prospects are expected to be identified from this process, with 3D seismic data anticipated to reduce the exploration risk and attract further investment through farmouts.

Shares in ADX Energy were trading flat today at 0.7 cents each at 3:24 pm AEST.

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