Tunisia/Italy - Sicily Channel
In April 2008, Kairiki signed a Letter of Intent agreement to ("LOI") acquire a 30% interest in two contiguous offshore Exploration Permits, G.R.15 PU in Italian Waters and Kerkouane in Tunisian Waters, from AuDAX Resources Limited.
G.R.15 PU, is located offshore the island of Pantelleria southwest of Sicily in Italian waters and the Kerkouane Permit is located offshore northeast Tunisia (see figure below).
Kairiki will acquire interests in these Permits as part of its Area of Mutual Interest ("AMI") agreement with AuDAX. These two Permits strategically provide full access to the highly significant Sambuca prospect both sides of the Tunisian-Italian maritime border as well as to the Dougga gas/condensate discovery.
G.R.15 PU - Pantelleria Permit (665km2, Italian waters):
30% interest (subject to completion)
Operator: Audax Resources Limited
Previous exploration work has identified a number of prospective targets, the standout being the drill-ready Sambuca prospect with a large resource potential. AuDAX as Operator has previously announced that the Sambuca Prospect may contain prospective recoverable resources of up to 230 million barrels of oil equivalent. Though largely lying within the Pantelleria Permit, the Sambuca structure extends into the contiguous Kerkouane Permit across the Italian-Tunisian maritime border. The Joint Venture plans to mature the remaining inventory over the coming few months. The forward work program requires completing the tendering process for an offshore drill rig and receiving environmental approvals for offshore drilling.
Kerkouane Permit (3847km2, Tunisian waters):
30% interest (subject to completion)
Operator: Audax Resources Limited
In addition to the extension of the Sambuca structure the Kerkouane Permit contains the Dougga gas/condensate field, discovered by Shell in the early 1980's. The Dougga Field lies immediately north of the Tazerka oilfield, also discovered by Shell in the early 1980's. The operator has previously announced that Dougga is assessed to contain 29 Mmbbls of condensate and 400 BCF of gas. Previous geological and geophysical work has identified several additional exploration leads and prospects within the Permit and a commitment 2D seismic survey will mature the most promising of these. The Joint Venture plans to complete 400 km of 2D seismic acquisition and spud one well prior to Permit expiry in February 2010.
The completion of these transactions is conditional upon AuDAX completing the acquisition of the Pantelleria and Kerkouane Permits from Grove Energy Limited by 30 June 2008; and a mutually acceptable Sales and Purchase Agreement being executed between Kairiki and AuDAX by 30 June 2008. These transactions are expected to close by 30 June 2008.
Tunisia
Area of Mutual Interest (AMI)
33.33%
In March 2008 Kairiki entered into a Tunisian AMI agreement with two Australian listed entities, AuDAX Resources Ltd and Nexus Energy Limited to explore for oil and gas opportunities in the country. This AMI allows the Parties to pool their respective resources in the search, evaluation and acquisition of oil and gas projects in this area. A variety of projects ranging from production, rejuvenation, development, near field exploration and frontier exploration are to be considered by the Parties.