As Europe faces unprecedented concerns about the security of its energy supply, ADX Energy has received further financial support from the Austrian Government to maintain the growth of its important portfolio of oil, gas and renewable energy assets in the European nation.
ADX Energy (ASX:ADX) has received a $1.15 million (EUR782,157) subsidy from the Austrian Government from a fund designed to help companies weather the storm of the Coronavirus pandemic.
Based on eligible business costs incurred between September 2020 and Feburary 2021, it comes on top of a previous subsidy payment of $158,000 (EUR107,500) for the period from March 2020 to June 2020 as well as a $1.662m (EUR1.13m) low cost loan to ASX’s local subsidiary provided through a program of Austrian state financing.
The funding from financing agency COFAG, focuses on companies like ADX which have a viable future business model, to ensure the pandemic does not disrupt their growth and hurt the benefits they provide to the Austrian economy.
“The Board of ADX appreciates the continued support provided to ADX’s Austrian business from the Austrian Government,” ADX executive chairman Ian Tchacos said.
“The subsidy funding is a recognition of the importance of ADX’s oil and gas business as well as our renewable energy projects.
“The ongoing financial support during the COVID-19 Pandemic has enabled ADX to maintain its Vienna based operations and technical team as well as continue to build its asset base in the Company’s core area of growth.”
A sustainable energy future for Austria
Tchacos noted the funding has helped ADX maintain the momentum at its Austrian operations, with the company maintaining production levels from its oil and gas fields in the Vienna basin.
It comes as Europe faces a local energy crisis from high demand and tight supplies of oil, gas and coal, and concerns about its reliance on Russian supplies of those products.
ADX has also been looking to find new oil and gas resources at its Upper Austrian exploration projects, culminating in the Anshof discovery.
With expectations Europe will increasingly look to renewable energy sources ADX is also completing ongoing feasibility work on the Company’s Vienna Basin Hydrogen Production and Storage Project and participation in the Siemens Geothermal Pilot Project.
“The additional funding allows ADX to maintain momentum at a time when Europe’s demand for local energy is at peak and the push towards locally produced renewable energy is being accelerated,” Tchacos said.
Flow testing of the Anshof-3 oil and gas discovery well in Upper Austria is expected to take place during April to evaluate the likely long term production and economic potential of the Eocene oil zone discovered in the well.
Based on nearby wells and results so far, ADX estimates an average oil production rate from Anshof-3’s Eocene reservoir of 40-100 barrels a day.
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.