ADX

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Growing the European and North African oil and gas business in order “to expose shareholders to the lucrative European energy market and to promote its existing Australian energy, gold and base metal portfolio to capitalize on the current high commodity price environment” is ADX Energy’s strategy since its inception in 1987. Throughout this time, ADX Energy has become a name synonymous with advancing projects in the oil and gas business in Europe and North Africa.

When ADX Energy was founded it went by the name AuDAX with goals to explore gold and base metals in Western Australia. Recently the company has shifted to focus on oil and gas, with a name change to ADX Energy, to show the company’s energy focus. Wolfgang Zimmer, Managing Director of ADX Energy, who came on board in 2007, with years of experience in the oil and gas sector, has nurtured the company and helped it grow since joining the team.

When Zimmer came on board, because AuDAX Resources had a lot of gold and base metal permits and tenements in Western Australia, the company realized it needed its own brand. “We realized it needed its own life management and funding so we just recently put an appeal together for this new company called Riedel Resources which will list on the stock exchange in Australia.”

Projects

ADX Energy has worked on projects in Australia, but today its main focus remains throughout Europe and mainly in Tunisia, Italy and Romania. It works on offshore and onshore licenses in Tunisia and offshore licenses in Italy, on the Chorbone, Kerkouane and the Pantelleria projects.

The Chorbone project is located just 20 kilometres west of Sfax, Tunisia. ADX Energy is the 100 per cent owner and operator of the project. The company also owns 100 per cent of the Kerkoune and Pantalleria projects which are located in the Sicily Channel adjacent to Pantalleria Island.

The company has been studying and bidding since 2007 in Romania, when Zimmer joined. ADX Energy has completed a regional prospective study of the area and has partnered with Caspian Oil & Gas and Sibinga Petroleum Ltd. on the project. These companies each have a 20 per cent stake, with ADX owning 60 per cent. Within these joint ventures, ADX Energy is able to gain full support to explore, evaluate and acquire oil and gas projects in Romania.

“Romania offers a large variety of production, rejuvenation, development, near field exploration and frontier exploration opportunities,” the company states.

A core staff and integral perspectives

ADX Energy started with few employees and still remains a small, conservative company with strong values. With a head office in Perth and a satellite office in Vienna, ADX Energy has about 17 contractors who conduct the legal and drilling sides of the company’s activities.

“We are a two hour flight from Rome, Tunisia, Tripoli, Bucharest and London, so it’s easy for us to operate from here.”

Zimmer says that the company’s small core team contracts to other companies for a number of reasons and over the years it has continued to act as a one-stop shop for oil and gas mining needs.

“It’s clearly that we believe in the application of technology and as a small company I think the one differentiating factor is that we believe we need to be the operator of what we are doing,” says Zimmer. “Therefore we can actually apply it. Most small companies don’t operate themselves and in our case we operate all of our permits. I personally believe us to have a strong competitive edge compared to the other companies.”

ADX Energy’s board of directors is committed to an extremely high standard of corporate governance. The company fully subscribes to the ASX’s Principles of Good Corporate Governance and Best Practice and applies these measures throughout its work today. The board is committed to ensuring all procedures are administered under the policies with integrity.

Goals and strengths

The company’s core focus going forward is in the areas in which it currently works. ADX Energy aims to utilize areas where it has personal experience and established networks and relationships. The company believes it has extremely prospective projects in the pipeline. Zimmer says, “We have proof of capability and are certified operators in Italy, Tunisia and Romania.”

Despite being a relatively small company in the industry, Zimmer says it benefits from having a close knit team of individuals. “We have a very low burn rate in turns of corporate costs. In terms of other small companies we actually do all the work and that is a differentiating factor. We are basically moving forward from highlight to highlight in a short period,” he explains.

ADX Energy isn’t just working on one tenement at a time, rather many tenements which show a lot of prospective wealth. Zimmer says, “With the funds we are raising, we have quite aggressive exploration activities planned and we have planned to achieve all milestones of all tenements within two years.” It is most certainly a positive for shareholders and an important aspect of its exploration. In doing so, ADX Energy utilizes the money as soon as possible to explore and show shareholders results.

ADX Energy understands Europe to be a somewhat untapped marketplace in some respects of the industry and is using this to its advantage with the many tenements it has set up throughout Europe. The company and its shareholders look forward to gained profits because of ADX Energy’s strong background and exploration knowledge base. With the help of individuals like Zimmer, who bring new and integral perspectives to the table, ADX Energy has seen a lot of growth through a short time. As it stands, the company is prepared for even more growth and will remain a shining example in the oil and gas industry.   

www.audax.com.au