ADX ENERGY LTD — Capital/Financing Update 2011

Sep 25, 2011

26 September 2011

ADX : Sidi Dhaher-1 Well – Operations Update #7

Activities since spud at 06:00 pm GMT, Friday 26 August 2011

ADX reports that Sidi Dhaher-1 has now been logged without further technical problems from the casing shoe at 999 m to 1785 m.

The well was then deepened to 2011m and wireline logs as well as pressure tests were run.

As of Sunday 6am GMT, the well was prepared for MDT to test identified zones of interest.

Weekly operations forecast:

• Complete testing and evaluation

• Condition well for running casing

The Sidi Dhaher prospect is located in the 2,428km[2] large Chorbane Exploration Permit onshore central Tunisia near the port city of Sfax. It is surrounded by several producing oil fields and extensive oil and gas infrastructure.

The Sidi Dhaher well is targeting an Eocene reservoir with estimated prospective resources of 175 billion cubic feet (5 billion m³) of recoverable gas and a Cretaceous reservoir with estimated prospective resources of 44 million barrels (5.9 million tons) of oil. Additional targets exist in the deeper Douleb and Bireno reservoirs that produce oil and gas in the Guebiba-El Hajeb field immediately east of the Chorbane permit.

Participant interests in the Sidi Dhaher -1 well will be as follows;

ADX Energy Ltd	40%	Operator
Gulfsands Petroleum Plc	40%	*
XState Resources Ltd	10%	*(ASX code: XST)
Verus Investments Limited	10%	*(ASX code: VIL)

Note: The respective participant interests in the Sidi Dhaher well and the Chorbane Permit are based on the completion of all farmin obligations.

For further details please contact :

Wolfgang Zimmer	Ian Tchacos
Managing Director	Chairman
+61 (08) 9226 2822	+61 (08) 9226 2822
www.adxenergy.com.au