Increased oil production is on the cards if the Anshof-2A well is successful. Pic: Getty Images
Energy
Special report: ADX is entering another phase of oil appraisal and development with the drilling Anshof-2A well expected in September as well as new gas exploration drilling in the ADX-AT-I licence in October.
Europe-focused energy production and exploration company ADX Energy (ASX:ADX) recently enjoyed a significant boost to its oil production after installing and commissioning of a permanent production facility at the Anshof-3 location in Upper Austria.
With capacity to produce 3000bpd of liquids per day, the facility has allowed the company to restart Anshof-3 production while retaining plenty of capacity to handle output from any other wells it might drill on the field.
Demonstrating how keen it is to make full use of this facility and leverage higher oil prices, the company is now preparing to use the RED 202 rig to drill the Anshof-2A sidetrack well in early September.
This well will target a bottom hole location up dip from the Anshof-2 well where it is expected to intersect similar thick Eocene reservoirs that were about six times thicker than the producing Anshof-3 discovery well.
Drilling of the sidetrack, which will branch off from the original Anshof-2 well, will take about two weeks to drill and it will be tied into the production facility.
While increasing oil production will deliver immediate improvements to the company’s bottom line, ADX is also looking to capitalise on the strong demand for gas in Europe by drilling an exploration well in an investment area within the ADX-AT-I licence.
The MND Investment Area is where ADX has done a deal with European energy company MND to fund exploration drilling. MND Austria has committed to fund €4.5 million (~$7.39 million) to earn 50% of the MND Investment Area.
Drilling and environmental permitting for the IRR-1 prospect is expected to be completed by mid-August 2024 while the LICHT-1 prospect is already permitted.
IRR is located next to an analogous discovery which to date has produced over 150 billion cubic feet of gas.
A decision on the drilling of the well will be taken in early August to allow for the preparation of the drill site ahead well spud.
Both prospects target high productivity gas reservoirs close to existing gas infrastructure, which allows for development to be quick and relatively low cost.
Over at the recent Welchau gas liquids discovery, ADX is continuing analysis work on the 450m column of condensate rich gas and liquids encountered in the Welchau-1 exploration well to revise the resource estimate that will be released in early September 2024.
The Company expects to finalise a detailed well testing program during August designed to evaluate the larger than expected pre-drill multiple hydrocarbon reservoirs encountered at Welchau-1. The Welchau testing program is expected to be carried out during the fourth quarter of 2024.
ADX has made a submission to the designated environmental authority to undertake production testing operations during the European winter period from 1 October 2024 to 31 March 2025.
“An exceptional gas and condensate discovery at Welchau, the installation of permanent oil production at the Anshof field and a successful capital raising program have positioned ADX for a period of well-funded and transformational activity during the second half of 2024,” executive chairman Ian Tchacos said.
“The company can look forward to production testing the large hydrocarbon column encountered at Welchau, the drilling of an appraisal well to build oil production at Anshof as well as the drilling of a high impact gas exploration prospect within its extensive Austrian portfolio located in the heart of energy starved Europe.”
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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