ADX is wasting no time getting Anshof-3 ready for production testing

ADX is now preparing to test its Anshof-3 well in Upper Austria after confirming last week that it had intersected commercial oil and gas reservoirs.

The company noted that the well in the ADX-AT-II licence has been suspended in preparation for completion with production tubing utilising a workover rig.

ADX Energy (ASX:ADX) has also started engineering, planning and procurement work in preparation for testing and production operations.

Last week, it announced that wireline logs had confirmed Anshof-3 had intersected a 6m interval at its primary deep Eocene oil target, of which about 2.5-4m is expected to be a productive net pay zone – in line with other operating wells in the region.

Adding further interest, the well also intersected a 20m gross gas interval of laminated sand and shale reservoirs within shallower Miocene formations, 14m of which are anticipated to be gas pay.

Pending successful testing, the company is likely to declare a production licence and begin commercial production at Anshof-3 under commercial arrangements with RAG E&P, connecting to an oil and gas pipeline just 50m away.

ADX owns 80% of the Anshof project, with X-State Resources (ASX:XST) holding the other 20% after contributing 40% of the well appraisal costs.

Further potential

While Anshof-3 appears successful in its own right, there may be further excitement in the future.

ADX has already identified a potential drill location just 1km to east that could host a predicted 18m oil interval, or about three times the thickness of the reservoir section encountered in Anshof-3.

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.