There’s loads more oil and gas at ADX’s Austrian fields
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ADX is celebrating a 154% increase in proved and probable (2P) developed oil and gas reserves at its Zistersdorf and Gaiselberg fields in Austria’s Vienna Basin.
An independent audit by RISC Advisory, which considered production forecasts, costs estimates and project economics, increased the reserves from a previous field audit carried out in November last year to 1.85 million barrels of oil equivalent (MMboe).
This increase was based on recompletion opportunities to access behind pipe reserves in existing wells that were identified from a full field geological and reservoir model developed by ADX Energy (ASX:ADX) along with better than forecast field production performance since the last audit.
“The RISC CPR results confirm that the developed reserves and production potential of ADX’s Gaiselberg and Zistersdorf fields significantly exceed previous expectations,” executive chairman Ian Tchacos said.
“Ongoing field performance and ADX’s technical studies which have been supported by RISC indicate that substantial behind pipe potential in existing wells can be accessed at low cost to increase reserves, future production and value from the fields.
“While the assets are mature, they are very well maintained with adherence to the highest environmental and emission standards.
“The assets also provide the opportunity to create further value for shareholders and provide environmental benefits through the future deployment of the Vienna Basin Hydrogen Production and Storage project, thereby delivering value from the Vienna Basin Fields for many years to come.”
Developed reserves at the Zistersdorf and Gaiselberg fields are classified as producing and non-producing.
Producing reserves comprise oil and gas quantities from existing wells while non-producing reserves are from behind pipe reservoirs in existing wells that will become producing reserves once these wells have been perforated to access and produce the intersected oil and gas.
Adding further interest, RISC notes that additional resources outlined in ADX’s simulation model could potentially be moved to the 2P category if the company’s depletion strategy is implemented and the simulation history match be validated by production actuals and results from key workovers.
This could increase 2P reserves up to 3.22MMboe.
The company’s simulation model estimates consist of developed producing resources and developed non-producing resources from well re-completions to shallower zones.
Most re-completions will occur within the next 10 years though the last is scheduled for 2042.
Re-completing wells to access shallower zones will not be done before production from the current zone has declined, which is responsible for the extended re-completion timing.
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.