Potential company-making gas prospect amongst targets at ADX’s new acreage
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ADX has more than doubled its acreage in the Upper Austrian Basin with the acquisition of new ground that hosts potentially transformational gas and geothermal resources.
The new ground, which takes the company’s total licence area up from 450sqkm to 1,022sqkm, includes the potentially company-making Welchau prospect that could host 750 billion cubic feet of gas, the Gmunden multi energy resource prospect, the ZAM oil prospect and the Piberbach oil field rejuvenation opportunity.
Along with ADX Energy’s (ASX:ADX) recent successful Anshof-3 oil well, the expansion is timely given the current European energy crisis brought about by concerns about the region’s reliance on Russian gas and the potential for geothermal to support the transition to renewable energy.
To this end, the company’s near-term oil and gas efforts will focus on delivering cash flow from Anshof and drilling Welchau.
“We are delighted about the significant expansion of our exploration and appraisal portfolio in Austria. We have been able to add opportunities such as the world-class Welchau gas prospect to the recent Anshof oilfield discovery within 18 months of securing our exploration licenses in Upper Austria,” chief executive officer Paul Fink said.
“Success at the Welchau gas prospect would help meet the large gas supply shortfall in Europe.
“In addition to Welchau, several other large prospects have been added to the portfolio on trend with the independently assessed OHO prospect.
“At the other end of the spectrum the acreage extension includes an oilfield redevelopment project with excellent satellite follow-up potential providing a low risk, rapid cash flow growth opportunity.”
The relatively shallow Welchau prospect has a best technical prospective resource of 750Bcf and is potentially connected to the Molln-1 gas discovery well which tested pipeline quality gas down dip from the proposed drilling location.
It is located in the foothills of the Austrian Alps and is analogous to the giant anticline structures discovered in Kurdistan.
Welchau extends laterally over 23km and has a potential gas column height in the prognosed well in excess of 1000m.
Gmunden features shallower gas targets along with a deeper geothermal target which is analogous to highly successful geothermal developments in the Munich region of Germany where a fractured and often karstified Jurassic limestone reservoir is exploited for geothermal applications.
Geothermal potential is assessed by the company to be capable of delivering 15 megawatts to 20MW of long-term continuous geothermal energy from a two-well development.
ZAM is a follow-up to the large independently assessed OHO prospect that has 20.4 million barrels of oil equivalent (MMboe) best technical prospective resources.
It is on trend with OHO and could add about 15MMboe to the company’s oil resource.
ADX also has the opportunity to mature the Piberbach field where an oil rejuvenation project has been matured to the project execution stage.
Additionally, the area has low risk exploration potential that has been proved by several nearby oil and gas discoveries that are characterised by excellent reservoir quality resulting in high flow rates and shallow drill depths of about 1,000m.
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.