ADX Energy's Strategic Drilling and Testing Operations in Austria - 24 July 2024
ADX (ADX) Share Update July 2024 Wednesday 24th
ADX Energy Announces Major Drilling and Testing Plans in Austria
ADX Energy Ltd (ASX: ADX) has released an update on its upcoming drilling and testing operations in Austria, highlighting significant plans for the second half of 2024.
Instant Summary:
- Drilling of Anshof-2A oil appraisal well in September 2024.
- Gas exploration well drilling in ADX-AT-I licence in October 2024.
- Welchau-1 production testing planned for Q4 2024.
- MND to fund EUR 4.5 million for gas well costs.
Anshof-2A Oil Appraisal Well
ADX Energy Ltd is set to commence drilling the Anshof-2A oil appraisal well in early September 2024. This well will target a bottom hole location up dip from the Anshof-2 well, utilizing the RED 202 Drilling Rig. The well is expected to intersect thick Eocene reservoirs similar to those encountered by the Anshof-2 well, which were approximately six times thicker than the producing Anshof-3 discovery well. The sidetrack well will take approximately two weeks to drill and is planned to be tied into the recently installed Anshof permanent production facility located at the Anshof-3 site.
Gas Exploration Well
The drilling of a gas exploration well is planned for early October 2024 in the MND Investment Area within the ADX-AT-I licence. Drilling and environmental permitting for the IRR-1 prospect is expected to be completed by mid-August 2024, with the LICHT-1 prospect already permitted. A decision on the drilling of the well will be taken in early August to allow for the preparation of the drill site ahead of the well spud. The prospects target high productivity gas reservoirs proximal to gas infrastructure, with MND funding the first EUR 4.5 million of well costs to earn a 50% economic interest in the MND Investment Area.
Welchau-1 Evaluation and Well Testing
Analysis work on the 450-meter column of condensate-rich gas and liquids encountered in the Welchau-1 exploration well is ongoing, with a revised resource estimate expected to be released in early September 2024. A submission has been made to the designated environmental authority to undertake production testing operations during the winter period from 1 October 2024 to 31 March 2025. A detailed well testing program designed to evaluate the larger than pre-drill expected multiple hydrocarbon reservoirs encountered at Welchau-1 is expected to be completed during August 2024.
ADX Economic Participation
ADX holds a 50% economic interest in the Anshof Field Area and a 60% economic interest in the Anshof-2A well. In the MND Investment Area, ADX's economic interest will reduce to 50% upon the completion of MND’s farmin obligations. ADX has a 100% economic interest in the remainder of the ADX-AT-I licence, including other gas exploration prospects and the GMU geothermal/oil and gas energy prospect. In the Welchau Investment Area, ADX holds a 75% economic interest.
The announcement of these drilling and testing operations is likely to have a positive impact on ADX Energy's stock. The planned activities indicate a well-funded and strategic approach to expanding production and exploration capabilities. The involvement of MND in funding the gas exploration well costs further strengthens the financial position and potential resource development for ADX Energy.
Investor Reaction:
Analysts and investors have responded positively to the news, highlighting the strategic importance of the planned operations in Austria. The potential for increased production and resource estimates is seen as a significant growth opportunity for ADX Energy.
Conclusion:
Investors should keep a close eye on ADX Energy's progress with these drilling and testing operations. The successful execution of these plans could lead to substantial growth in production and resource estimates, making it a potentially lucrative investment opportunity. Stay informed on ADX Energy's developments and consider the long-term potential of their Austrian projects.