ADX Energy targets oil production with drilling of Anshof-2A appraisal well in Austria

ADX starts drilling the Anshof-2A appraisal well that targets a thicker reservoir than intersected at Anshof-3
Well has the potential to produce oil at significantly higher rates than the 110bpd at Anshof-3 if successful
Rig will move to drill the Lichtenberg 1 (LICHT-1) gas exploration well after completing Anshof-2A

Special Report: ADX has spudded the much-anticipated Anshof-2A sidetrack appraisal well in Upper Austria that could deliver a significant boost to its oil production in the event of success.

Anshof-2A targets thicker, high-porosity Eocene reservoirs that are expected to be updip of its currently producing Anshof-3 discovery well in the ADX-AT-II licence.

ADX Energy (ASX:ADX) expects drilling to take about 14 days and will tie the sidetrack appraisal well into the existing Anshof permanent production facility if it successfully intersects commercial oil.

Drilling is being carried out by the RED Drilling & Services E-202 rig that was previously used to drill Anshof-3.

The company had previously flagged that Anshof-2A had the potential to produce oil at significantly higher rates than the 110 barrels per day (bpd) it produces at Anshof-3.

This will go a long way towards filling the 3000bpd capacity available at the permanent production facility and boost the company’s bottom lines.

Anshof field outline and areas of greater Eocene reservoir thickness. Pic: ADX Energy

Good oil? Plenty of potential

Anshof-2A is being sidetracked from the previously drilled Anshof-2 well that was drilled in November 2023 and had encountered high-quality Eocene sands below the interpreted oil-water contact that were ~six times thicker than those at the Anshof-3 well.

The targeted site of the appraisal well is expected to intersect the Eocene sands at a true vertical depth of ~37m shallower than the Eocene intersected at the water bearing Anshof-2 well.

It will also provide another important depth control point confirming additional Anshof-related appraisal and development drilling opportunities while advancing maturing of follow-up prospects.

Anshof is just one of several potential oil closures mapped by ADX in the immediate area.

The company notes that all proven closures in the area have so far been filled to the spill point, which is significant from a resources standpoint, and that the main risk has been accurate mapping of the traps using 3D seismic.

More drilling

Once drilling of Anshof-2A is completed, the rig will move on to drill the Lichtenberg-1 (LICHT-1) gas exploration well in the ADX-AT-I licence.

This well will test a reservoir with best estimate prospective resources of 21.1 billion cubic feet of gas that was identified from updated mapping from 3D reprocessing and a review of reservoir distribution.

Cost of drilling the well, estimated at $8.5m on a dry hole basis, is largely covered by partner MND Austria’s commitment to fund €4.5 million ($7.4m) to earn 50% of the MND Investment area within the ADX-AT-I licence.

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.