ADX Energy cheers ‘extraordinary’ year, confirming commercial discovery at Austrian Anshof-3
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ADX Energy has confirmed the discovery of commercial oil and gas reservoirs in electric well logging results at its closely watched Anshof-3 Well in Austria, with plans to open a second production front in the European nation.
ADX Energy (ASX:ADX) has interpreted a 6m interval at its primary deep Eocene oil target, of which about 2.5-4m is expected to be a productive net pay zone. That is in line with other operating wells in the region.
A shallower gas find has also been made in a 20m gross interval of laminated sand and shale reservoirs within imbricated Miocene formations, 14m of which are anticipated to be gas pay.
While the Eocene oil discovery is the main pay, the Miocene sands deliver the opportunity for near term cash flow given the super-high European gas prices of €79.95/MWh (US$35.07 per mcf).
A third hydrocarbon zone across an 11m gross interval at the secondary Cenomanian oil target is thought not to have productive oil flow rates, but could be productive elsewhere in the structure.
The reservoir characteristics are similar in nature to productive zones in nearby wells, providing further confidence in ADX’s interpretation.
The well will now be cased and cemented with 7 inch casing by the RED E-200 rig ahead of testing with a smaller workover rig to confirm the productivity and continuity of the Anshof-3 oil and gas reservoirs prior to placing the well on commercial production.
ADX, which operates the Gaiselberg and Zisterdorf oil fields, expects to declare a production license and begin commercial production at Anshof-3 under commercial arrangements with RAG E&P, connecting to an oil and gas pipeline just 50m away.
Executive chairman Ian Tchacos called the ADX team’s ability to convert the Anshof prospect to a discovery in under a year an “extraordinary” achievement.
“Three hydrocarbon bearing zones of interest have been intersected at the Anshof discovery in a large, high relief structure providing very significant appraisal and development potential in an onshore setting adjacent to readily available gathering, production and export infrastructure,” he said.
“The ability of our team on the ground to convert an exploration prospect to a discovery in a period 12 months from securing a license is extraordinary.
“The Anshof-3 well is expected to yield a second production asset in Austria for ADX in the near future. ADX shareholders and our partner Xstate are expected to benefit from operational synergies with our existing operations at the Vienna Basin Gaiselberg and Zistersdorf fields, positive government relations and agreements to access adjacent oil and gas infrastructure on predetermined terms.
“On behalf of the Board of ADX, I would like to congratulate our Austrian team for this potentially transformational discovery resulting from their technical ingenuity, hard work and professionalism.”
ADX owns 80% of the Anshof project, with X-State Resources (ASX:XST) holding the other 20% after contributing 40% of the well appraisal costs.
The Eocene oil discovery came within 5m of its prognosed depth confirming pre-drill mapping of a maximum extent of 27 km2 and a very significant maximum vertical relief of 440m.
While the interval came in at the lower end of pre-drill estimates, ADX has been able to maintain its pre-drill technical resource estimate (mean 6.6MMboe).
But that’s not where the prospectivity of the oil reservoir ends, with a predicted 18m interval – three times the thickness of the reservoir section encountered in the Anshof-3 Well – projected around 1km to the east.
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.