Excitement builds at ADXs’ Anshof-3 well in Austria as drilling preparations get underway
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ADX Energy begins preparations to undertake an oil (Eocene primary objective discovery) and gas (Miocene discovery) test on the recently drilled Anshof-3 exploration well in the ADX-AT-II licence in Upper Austria.
The RED Drilling and Services GmbH workover rig will be mobilised to the Anshof-3 location during the first week of March, together with necessary testing equipment.
ADX Energy (ASX:ADX) says the planned sequence of well operations will include:
ADX says first commercial production will be achieved within six months, where it aims to determine the oil flow rate potential of both the Eocene sands and the Miocene sands as well as continuity of the reservoirs based on pressure response and production performance.
The sequence of commercial production based on production performance, reserves potential and economics will also be assessed.
Based on well results to date, ADX believes the pre-drill Eocene oil resources most likely do not warrant revision.
The Anshof-3 exploration well intersected the Top Eocene oil zone as predicted by the 3D seismic pre-drill interpretation – only 4m higher than prognosed (making the potential oil column slightly larger by a commensurate amount).
This excellent result validates the pre-drill structural model and confirms the presence of a large structure.
Following the completion of an ongoing interpretation of petrophysical and formation imaging (FMI) data from wireline logs, ADX will provide resources estimates for the Miocene gas reservoirs as well as an appraisal and development drilling plan.
Due to the shallow depth and close vicinity to gas infrastructure, even relatively small volumes can be produced commercially at current European gas prices.
In case of a successful well test which is anticipated during mid to late March 2022, first gas production can be expected for early November 2022, allowing ADX to benefit from the current highly elevated European gas prices.
ADX will continue to evaluate and report on the potential of Miocene and Cenomanian reservoirs to be incorporated into ongoing appraisal and development work programs.
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.