ADX Energy is on the cusp of getting a firm handle on just how strong its Anshof-3 oil and gas discovery in Upper Austria will perform, when flow testing starts later this month.

The RED W-101 workover rig will mobilise to the well site in late March where it will run production tubing, perforate the well and run two flow tests using compressed natural gas to lift oil in the well.

ADX Energy (ASX:ADX) expects the flow testing to evaluate the likely long-term production and economic potential of the Eocene oil zone at Anshof-3 and obtain further valuable data for the ongoing appraisal and development of the Eocene oil discovery. Testing of the shallower gas zone is expected at a later time after producing the oil zone.

The company has estimated the Eocene reservoir will produce between 40 and 100 barrels of oil per day based on well performance from analogous nearby Eocene zone production wells.

Once testing is completed, the well will be placed on long term interim production utilising a rod pump and delivering oil for sale by truck to a nearby oil terminal prior to securing a production license for the Anshof discovery.

Austrian law allows for the interim production of up to 37,000 barrels prior to the finalisation of a production licence.

Oil and gas discovery

Anshof-3 was completed in mid-January after penetrating a large high-relief structure providing significant appraisal and development potential in that area.

The well intersected two zones of commercial interest a 20m gross gas reservoir at a depth of 800m within Miocene sandstone reservoir formations and a 6m gross Eocene oil reservoir which will be tested first.

ADX has two other well slots on the Anshof licence that it intends to use for near term appraisal and development drilling.

 

 

 

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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