ADX Energy has seen its fortunes sent rocketing after an independent review at Anshof assessed 5.2m barrels for the field’s reserves. Pic via Getty Images.
Energy
ADX has received a massive 239% boost to its Austrian 2P reserves after pencilling in an independently assessed 2P reserve of 5.2 million barrels of oil for its Anshof project.
RISC Advisory’s independent audit of reserves and resources for the 80%-owned Anshof includes production forecasts, cost estimates, project economics and resulting valuations of reserves by category for the Eocene oil reservoirs within the field.
The resulting proven and probable (2P) reserves, which the company can reasonably expect to recover economically, has estimated net present value of €42.3m ($65.8m) based on RISC’s oil price forecast of an average US$71 ($110.9) per barrel and discounted at 8%.
ADX Energy (ASX:ADX) forecasts that it expects improved well performance and thus require less production wells to fully develop Anshof than has been estimated by RISC. If proven this would significantly improve field economics.
The company now has total 2P reserves of 5.9MMbbl across Austria at Anshof – where the lion’s share of its oil is now located – as well as the wholly-owned Gaiselberg and Zistersdorf fields in the Vienna Basin
“The RISC CPR confirms the materiality and value of the Anshof field which is in line with the ADX predrill estimates,” executive chairman Ian Tchacos said.
“ADX is pursuing the development of the Anshof field with the ordering of long lead items for the drilling of the Anshof-1 and Anshof-2 wells from the same well site as the recently producing Anshof-3 well.
“Our goal is to significantly increase production and further appraise the reserves from the field.
“We are especially pleased that the RISC CPR provides an assessment of the large reserves and contingent resource potential of Anshof.”
Anshof was discovered by the Anshof-3 well which was drilled, evaluated and cased in January 2022.
The well recently started production at a controlled rate of about 100 barrels per day with the company noting that output was limited by on-site storage capacity and truck frequency transportation limitations.
Current production is also limited to a total of 37,000bbl under Austria’s legislation prior to ADX finalising a production licence for the entire Anshof discovery area, which covers an area of about 25km2.
Given that Anshof-3 alone has increased the company’s oil production by a third and the RISC assessed 2P reserves, the field looks set to deliver a step change to the company’s production and finances.
This is particularly true due to plans to drill an additional two wells at the current well site and expectations that 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.
Fellow Australian Xstate Resources holds the remaining 20% interest in the Anshof oil field after funding 40% of the costs of drilling 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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