ADX has completed a well work program that has increased oil and gas production from its Gaiselberg and Zistersdorf fields in the Vienna Basin by 25%.
The two fields are now producing at a rate of 318 barrels of oil equivalent – consisting of 281 barrels of oil and 37boe of gas – per day, well above the average production of 254boe/d in the December 2021 quarter.
Adding further interest, this is 10% higher than when ADX Energy (ASX:ADX) first acquired the fields, a clear demonstration of the long-life producing nature of multi-layered fields.
With oil prices averaging around the US$100 per barrel mark and Central European Gas Prices averaging about US$33 per thousand cubic feet, the increased production is also expected to deliver stronger revenues for the company.
The €183,000 ($282,380) work program comprised of well repair work and the perforation of behind pipe reserves in two wells.
Behind pipe reserves are resources that have been confirmed but require additional completion work or future recompletion prior to the start of production.
Hydrogen potential
While the two fields are still generating revenues for the company, it is the depleted gas reservoirs contained within that are of especial interest in the future.
ADX believes that these reservoirs are at the ideal temperature and pressure for hydrogen storage and are conveniently located next to the biggest wind farms in Austria.
With Austrian wind and solar power overloading the grid every summer, this presents the opportunity for the excess renewable energy to be used for producing hydrogen and storing the gas in the depleted reservoirs in winter.
This essentially creates a hydrogen battery where each reservoir can store about 500 times more energy than the largest Tesla energy storage Mega Pack (about 200MWh) at a much lower price.
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.