ADX has green light to drill Upper Austria oil well
Link copied to
ADX has received approval to drill an exploration well that has the potential to deliver rapid cash flow and a substantial increase to its resource base.
The Anshof-1 well at the wholly-owned ADX-AT-II licence targets a best technical case prospective resource of 6.6 million barrels of oil equivalent (MMboe) with significant upside potential in the primary Eocene sandstone target at a depth of 2,000m.
ADX Energy (ASX:ADX) will also drill the well to a depth of 2,200m to test a secondary target potentially intersecting Cenomanian reservoirs with a best technical prospective resource potential of 2.1MMboe.
The approval paves the way for well site construction to begin in mid-November subject to a final environmental approval. This will allow the well to be spudded (start of drilling) in mid or late December.
Anshof-1 is expected to take about 17 days to drill and evaluate at a cost of about €2 million ($3.12m) on a dry hole basis.
Should it be successful, the combination of proven, highly productive reservoirs, as well as close proximity to infrastructure that is accessible on favourable terms, will provide excellent economics and rapid cash flow.
“The achievements of defining a prospect for drilling, planning a well, securing a drill site and obtaining the necessary approvals for drilling a well, all within one year, is extraordinary,” executive chairman Ian Tchacos said.
The approvals from the Austrian Mining Authority allows for the drilling of up to three wells, enabling follow up development wells to be drilled rapidly upon success.
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.