Gulfsands Petroleum said it is likely to spud the Sidi Daher exploration well in Tunisia in early February this year.
ADX Energy, the operator of the Chorbane Block onshore Tunisia, has signed a letter of intent (LOI) with Challenger Limited for the use of the Rig 37 onshore drilling unit to drill the planned 2150m Sidi Daher well.
The company said that the well is expected to take approximately 45 days to drill and evaluate.
The Sidi Daher prospect contains multiple potential reservoir intervals of Tertiary and Cretaceous age that will be evaluated with this well.
ADX has estimated prospective resources of 175 billion cubic feet of gas in the Eocene aged Metlaoui formation and 44 million barrels of oil in the Cretaceous aged Abiod Formation.
Additional resource potential exists in the Douleb and Bireno Members of the Cretaceous aged Aleg formation.
Gulfsands will pay 80% of the first $5m in drilling costs for the Sidi Daher well and 40% of the drilling costs in excess of $5m for this well in order to earn a 40% working interest in the Chorbane Block.
The total estimated cost of the well is $6.9m ($4.8m net to Gulfsands).