ADX Energy adds engine to power oil revenue with commissioning of Anshof permanent production facility

ADX Energy commissions Anshof permanent production facility with 3,000bpd capacity
Anshof-3 back online with oil production of 134bpd, up 16% from before the well was shut-in
Facility allows further Anshof production wells to be tied in

Special Report: ADX Energy is poised to enjoy a significant boost to its oil production following the successful installation and commissioning of the permanent production facility at the Anshof-3 location in Upper Austria.

Highlighting this potential, oil production from Anshof-3 has already restarted at an initial rate of 134 barrels per day, up 16% from the production rate when it was shut-in in September 2023.

ADX Energy (ASX:ADX) had previously produced oil from the discovery well at a constrained rate through a temporary production facility before having the shut the well in after reaching the regulatory limit of 36,000bbl of long term test production over a 10 month period.

The company then moved to install a permanent production facility with capacity to produce 3,000bpd of liquids per day, allowing it to restart Anshof-3 production and handle output from any other wells it might drill on the field after the permit for permanent production was received in mid-November 2023.

This includes the planned sidetrack of the Anshof-2 well that will test an updip location with potentially higher oil saturation than the original well bore which will be drilled when a rig slot becomes available as well as a futher well later in the year.

The Anshof permanent production facility. Pic supplied (ADX)

Oil production boost

Bringing the Anshof-3 well at ADX’s 50%-owned Anshof field back into production is expected to increase the company’s revenue and cash flow generation, allowing it to take advantage of higher oil prices.

Besides the greater production capacity, the new facility also offers the capability to process oil from more than one well, provides additional oil storage capacity, use of associated gas for power generation and process heat as well as enhanced automation.

In fact, the facility is designed and engineered for remote production operations, meaning that no permanent staff will be required on site.

ADX is currently planning to increase Anshof-3 production to about 150bpd of oil with the company noting reservoir pressure in the target Eocene reservoir has recovered to nearly initial pressures after a 5 month shut in to install the new facility.

While produced oil is currently trucked from Anshof to the REP GmbH export train loading facilities at Voitsdorf-Zentrale under an agreement for delivery to the OMV refinery in Schwechat near Vienna, the company plans to construct new production pipelines to nearby export facilities less than 4km from Anshof-3 once further wells are added.

This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.