(MENAFN - ProactiveInvestors - Australia) ADX Energy (ASX: ADX) has reached a definitive agreement to farm out a further 15% participating interest in its Chorbane exploration permit, onshore Tunisia, to Rift Basin International.
Under the terms of the farm out ADX will receive a cash payment of US200,000 on or within 10 days of approval from Tunisian petroleum regulator L'Entreprise Tunisienne d'Activits Ptrolires (ETAP), which has already being received.
ADX will receive a further US700,000 upon the earlier of January 31, 2013 and applicable government approval for the farm-in and a further US300,000 within 10 days of a request to Rift Basin in accordance with the work program and budget for the planned seismic acquisition.
This transaction is in line with ADX's strategy of focusing its activities and its resources onshore Romania, offshore Tunisia in the Sicily Channel and central Europe.
ADX will retain a 15% participating interest in Chorbane.
Rift Basin International
Rift Basin International is a wholly-owned subsidiary of Rift Basin Resources (CVE: RIF), formerly Mayen Minerals, a Tier 2 mining issuer is seeking to become an oil and gas issuer.
Rift Basin has a strategic partnership with Gulfsands Petroleum (AIM: GPX), which is earning a further 30% interest in Chorbane to ultimately hold a 70% operating interest.
The farm-in represents Rift Basin's first oil and gas acquisition.
The Chorbane permit is located onshore central Tunisia near the port city of Sfax. The permit is surrounded by several producing oil fields and extensive oil and gas infrastructure.
Operator Gulfsands plans to start a seismic acquisition program costing about US2 million this year.
Following processing and evaluation of the seismic data captured in the upcoming work program, Gulfsands expects to drill at least one well on the Chorbane permit during calendar year 2014.