ADX has ramped up production of sweet crude by 30% with the addition of a 100 barrels per day of new production in Austria. Pic via Getty Images.
Anshof-3 production is just a taste of what’s to come for ADX in Austria
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ADX is poised to become a significant Austrian oil producer with the start of commercial production at its Anshof-3 well being the harbinger of more to come.
The 80%-owned well is currently producing at a stable, controlled rate of 100 barrels of oil per day, which represents a 30% increase in the company’s overall oil production.
Oil produced is a high-quality sweet crude – oil with very low levels of sulphur – which will trade at a small discount to the benchmark Brent price, which is currently at US$93.60 ($146.27) per barrel.
ADX Energy (ASX:ADX) noted that while well production is at the upper end of its expectations, it is currently limited by on-site storage capacity and truck frequency transportation limitations.
It is also limited to interim production of up to 37,000 barrels under Austria’s legislation prior to finalising a production licence for the entire Anshof discovery area, which covers an area of about 25km2.
However, this is very much just the beginning for the company.
Production is expected to jump within the next 12 months with the drilling of two additional wells at the same well site while subsequent wells on the flank of the large Anshof structure, where the target Eocene reservoirs are expected to thicken, are forecast to deliver significantly higher production.
“The Board of ADX is delighted by the commencement of commercial production during the long-term testing of the Anshof-3 well,” executive chairman Ian Tchacos said.
“Anshof represents an important new project and source of additional revenue for ADX with the potential of becoming material asset in terms of both reserves and production rate.
“The ability to deliver commercial production from Anshof within 2 years from securing the Upper Austrian exploration licences is an extraordinary result brought about by a highly experienced technical team with access to an extensive 3D seismic data set as well as pre-existing access arrangements to excellent nearby production infrastructure.”
Oil production
Oil from the Anshof-3 well is currently being produced via a leased early production unit (“EPU”) before it is trucked to a nearby terminal for sale to RAG and final processing for delivery by rail to the OMV refinery near Vienna.
The EPU provides oil and gas separation, power generation, well site storage, offloading and telemetry control systems at the Anshof-3, allowing oil to be produced with minimal operator intervention.
ADX is currently observing the well’s performance to determine the production capacity and continuity of the Eocene reservoirs.
Fellow Australian Xstate has a 20% interest in the Anshof prospect after funding 40% of the costs of 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.
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