ADX has mobilised a workover rig and equipment to test Welchau-1’s ability to flow oil at commercial quantities. Pic: Getty Images
ADX Energy mobilises to test its big new Austrian oil discovery
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- ADX has mobilised a workover rig and testing equipment to Welchau-1
- Testing will determine the hydrocarbons present as well as the ability of the well to flow
- Successful testing will allow for early commercialisation due to proximity of infrastructure
Special Report: ADX Energy will soon determine just how much oil and gas its Welchau-1 discovery well in Upper Austria is capable of producing with the mobilisation of the workover rig and testing equipment.
The mobilisation follows the company receiving all necessary approvals to start flow testing operations at the well, which intersected hydrocarbon shows over a 450-metre interval within three primary carbonate reservoirs.
ADX Energy (ASX:ADX) will use the workover rig to start well completion operations prior to well flow testing, which is expected to start during the second half of November 2024.
This will test the two major Triassic-Mesozoic age reservoirs encountered by Welchau-1, starting with the deeper Steinalm Formation and then the shallower Reifling Formation.
While the well was originally drilled to test a best technical prospective resource of 807 billion cubic feet equivalent (Bcfe) of gas, data recovered from Welchau-1 indicates it is a high gravity (43.6 degrees API) light oil with associated gas rather than a liquids-rich gas that was originally predicted prior to drilling.
As such, the company has revised its best estimate prospective resource to 46 million barrels of oil equivalent (MMboe) with a mean estimate of 85MMboe.
“ADX is looking forward to the production testing of the large hydrocarbon column encountered at Welchau-1,” executive chairman Ian Tchacos said.
“After completion of an extensive period of data analysis, preparation for testing operations and a permitting process that was focussed on meeting the environmental conditions as well as community expectations, we are now ready to commence operations.
“The successful testing of Welchau will have significant implications for ADX, our partner MCF and the Republic of Austria which is located in the heart of energy starved Europe.
“The expected light oil (43.6° API) at Welchau could be very valuable in commercial quantities given shallow drill depth and onshore setting which is proximal to infrastructure.
“In this onshore setting, a commercial oil project can be developed incrementally as it is appraised, thereby minimising funding requirements as well as enhancing economics and payback time frames.”
Welchau-1 testing
ADX will use the workover rig to run a test string, which includes tubing, a down hole packer and perforating system into the cased and suspended well.
It will then run continuous (24-hour) flow testing operations for which it has environmental clearance to carry out up to March 31, 2025.
This gives the company ample time to carry out an extensive testing program to determine flow rates, type of reservoir fluid and determine the reserves potential of the reservoir.
For each test of the two major reservoirs, a number of flow periods and shut in periods are planned to determine the pressure response with down hole gauges. Well performance will be monitored to determine the potential reservoir damage from drilling and cementing of the well 7-inch casing.
In each test the well may also be stimulated – if necessary – to enhance well performance.
Should light oil content and commercial flows be confirmed, Welchau-1 can be quickly brought into production through Austria’s state-of-the-art refinery near Vienna that also processes oil from the company’s Anshof and Vienna Basin fields.
It will also have little difficulty finding customers as Austria imports ~92% of its crude oil requirements.
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.
