ADX Energy has agreed to farm out 50% WI in the d 363 C.R-.AX licence to SDP Services, in order to develop the Nilde field area. The deal was announced on 31 October 2018 and is pending ratification of the d 363 C.R-.AX licence (725 sq km) by the Italian Regulatory Authorities, following an application in January 2010. SDP will fund the development costs up to a maximum of EUR20.82 million (US$ 23.66 million) and receive 50% equity in the licence plus 5% net profits royalty interest from any future production from the Nilde field. As part of the development the company plans to re-drill (H1 2019) the NFW Nilde-2 (1976, Agip, 2,143m) which was suspended after encountering oil, as well as, drilling two vertical production wells. The licence, offshore in the Sicily Channel, was awarded in May 2014 and is operated by its wholly owned subsidiary AuDAX Energy Srl. The acreage offers potential in proven Miocene clastic and Upper Cretaceous limestone plays and includes the abandoned Nilde oil field which was discovered in 1976 and placed on production in 1989 via an FPSO. It produced a total of approximately 20.5 MMbo from three wells before being abandoned in 1999 with the oil price below US$15/bbl. d 363 C.R-.AX was estimated in March 2018 to hold prospective resources of 40-201 MMbo, whilst target production from the Nilde field is reported at 34.1 MMbo (2C) from three wells over seven years. A further resource of 2.2-15.6 MMbo is estimated at the Norma-1 and Naila-1 discoveries. Pending formal award and subject to deal closure, ADX Energy's wholly owned subsidiary AuDAX Energy Srl holds 100% equity in d 363 C.R-.AX.
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