The variations to ADX Energy’s Upper Austria licences have more than tripled the number of low-risk, drill-ready shallow gas targets. Pic: Getty Images
Energy
Special Report: ADX and the Austrian Ministry for Finance have agreed on a variation of the company’s exploration and production licences in Upper Austria that provide immediate, drill-ready and low risk shallow gas prospects.
The area variations, which included relinquishing existing acreage and adding new contiguous acreage, were initiated and designed by ADX to capture multiple asset expansion opportunities with different play types in the basin and was achieved without changing the overall area under licence or incurring additional costs.
ADX Energy (ASX:ADX) says the revised acreage configuration places it in an excellent position to diversify and improve its production revenue base in the short term with low risk and fast to develop gas targets as it continues to mature prospects for drilling in its evolving exploration portfolio with larger resource potential.
Importantly, it has more than tripled the number of low-risk and drill-ready shallow targets that are expected to provide immediate and low-cost drilling opportunities to deliver rapid production and cash flow growth from a proven gas play with strong, identifiable signatures on 3D seismic.
These targets are close to open access pipeline infrastructure, with multiple follow up opportunities.
“The company has been building an inventory of low-risk gas prospects for some time by leveraging our knowledge of a proven and commercially successful play that is present across the Basin,” executive chairman Ian Tchacos said
“As a result of the Area Variations, ADX now has many drill-ready, shallow and fast to develop clean gas targets at a time of the highest European gas prices in two years.
“In addition, following the results of Welchau-1 and Lichtenberg-1, large evolving hydrocarbon prospects and appraisal opportunities are being matured for drilling.
“This places ADX into a highly advantageous position to substantially build production and cashflow in the short term and pursue large resource potential from transformational opportunities in the longer term.”
Besides the greatly enhanced shallow gas targets, the ADX-AT-I and ADX-AT-II licences host play types such as a potential extension of the Welchau-1 prospect, plus coverage of the Mollin-1 gas appraisal opportunity and the follow-up Rossberg prospect.
Mollin-1 had tested at rates of up to 4 million cubic feet of condensate-rich gas in 1989 from a carbonate reservoir of equivalent age to that being tested at Welchau-1 well.
Interpretation work at Welchau-1 is currently underway using structural and reservoir information gathered during drilling.
ADX is also maturing additional high impact oil and gas prospects that are expected to benefit from upgraded interpretations supported by further new reprocessing of the extensive 3D seismic data set within the ADX-AT-I licence area.
These enhancements are further complemented with the important stratigraphic knowledge gained from the recent Lichtenberg-1 well.
The company is also maturing the Anshof near field exploration prospects within the ADX-AT-II licence for drilling.
Maturing these prospects could rapidly add production to the existing Anshof permanent production facility.
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.
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