ADX Energy ticks Anshof-3 well spudding off its list in Upper Austria
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Planned future operations include preparation to drill the next hole section and drilling 12 ¼ inch hole to 340m.
ADX Energy has ticked the spudding at the Anschof-3 well within the ADX-AT-II licence in Upper Austria off its list as it prepares for the Christmas holidays.
During the first 24 hours of operation the RED Drilling & Services GmbH (RED) E-220 rig had drilled 17 ½ inch hole to a depth 37m and cemented 13 ⅜ inch casing.
Future Anshof-3 drilling operations are planned to include preparation to drill 12 ¼ inch hole and drilling ahead to a depth of 340 m prior to running and cementing 9 ⅝ inch casing.
This comes as ADX Energy (ASX:ADX) completed the construction of the well last week saw the mobilisation commence.
The company says it expects approval by the Forest Authority for the two additional surface locations for drilling by year-end, allowing follow-up appraisal and development drilling.
This announcement follows a recent $2.5m raise earlier this month, which saw investors snap up 287.7m shares priced at 1c each – a 9% discount from the last closing price of 1.1c.
The issue of one placement option at 1.5c by or before June 30, 2022 was included for every two shares subscribed.
ADX said funds will be used to “complete and tie in the upcoming Anshof-1 oil exploration well in the event of a success as well as licence fees for the extension of the company’s exploration licences in Upper Austria.”
“This additional funding allows ADX to pursue its exploration activities as well as the feasibility of its low carbon projects,” executive chairman Ian Tchacos said.
The company’s Vienna Basin assets include multiple depleted gas reservoirs that are at the ideal temperature and pressure for hydrogen storage and are conveniently located next to the biggest wind farms in Austria.
ADX is also looking to tap into geothermal potential of the Mollasse Basin through a pilot project with Siemens Energy, who have a technology that has the potential to produce six times the power per well compared to conventional geothermal power systems.
Separately, the company has started site works for the Anshof-1 oil exploration well that targets up to 6.6 million barrels of oil equivalent.
Drilling is expected to start in mid-December, with work expected to take about 17 days to complete.
Should the well be successful, its location just 50m from an existing oil and gas pipeline bundle will allow rapid commercialisation.
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.