ADX Energy's Anshof-2A Well: A Promising Oil Discovery
ADX (ADX) Share Update September 2024 Monday 16th
ADX Energy Announces Significant Oil Discovery at Anshof-2A Well
ADX Energy Ltd (ASX:ADX) has announced a significant oil discovery at its Anshof-2A sidetrack oil appraisal well, located in Upper Austria. The well has intersected a 6.5-meter net vertical oil column, which is three times the size of the oil column found in the Anshof-3 discovery well.
Instant Summary:
- Anshof-2A well intersects a 6.5-meter net vertical oil column.
- Oil column is approximately three times that of Anshof-3 discovery well.
- Higher porosity and permeability in the Eocene sandstone reservoirs.
- Well will be cased, completed, and tied-in to the Anshof Permanent Production Facility.
- ADX holds a 60% economic interest in the well.
Details of the Anshof-2A Well
ADX Energy Ltd has announced that its Anshof-2A sidetrack oil appraisal well, located in the ADX-AT-II licence in Upper Austria, has intersected a 6.5-meter net vertical oil column in high-quality Eocene aged sandstone reservoirs. The oil column is approximately three times the size of the one encountered in the Anshof-3 discovery well, which is currently producing at 110 barrels per day.
The well was drilled using the RED Drilling & Services GmbH (RED) E-202 rig and reached a measured total depth of 2195 meters. The drilling and evaluation process took approximately 10 days. Based on electric line logs and pressure data, the well has encountered high-quality Eocene sandstone reservoirs between 1586.5 meters and 1599 meters Total Vertical Depth Subsea (TVD SS). An oil-water contact is interpreted at a depth of 1593 meters TVD SS.
Operational Plans and Future Prospects
The Anshof-2A well will be cased and cemented for suspension as a production well. The completion process will involve the installation of production tubing and a rod pump, which is expected to commence in early October. The well will then be tied-in to the Anshof Permanent Production Facility, allowing it to contribute significantly to ADX's oil production and cash flow within a few weeks.
ADX Executive Chairman, Mr. Ian Tchacos, expressed his satisfaction with the results, stating, 'We are very pleased to announce a second Anshof Oil Field producer. The well is expected to make a significant contribution to ADX’s oil production and cash flow within a few weeks when it is tied in to the recently installed and commissioned Anshof Permanent Production Facility.'
Geological Insights and Comparisons
The Anshof-2A well has intersected high-quality Eocene reservoirs up dip from the water-wet Anshof-2 well and slightly down dip from the Anshof-3 discovery well. The oil intersection at Anshof-2A is approximately three times that of Anshof-3 in reservoirs with about 20% higher porosity and permeability.
The Eocene reservoirs encountered at Anshof-2A are similar in thickness and quality to those found in the down dip Anshof-2 well, confirming that thicker and more productive reservoirs are prevalent in the eastern part of the field compared to the Anshof-3 discovery well to the west.
Future Operations and Strategic Plans
Current well construction operations include the running and cementing of casing in the Anshof-2A well. The RED E-202 rig will then be demobilized to the Lichtenberg-1 gas exploration well location in the ADX-AT-I licence, approximately 60 km west of Anshof-2A. Completion operations on the Anshof-2A well are expected to commence in early October with the installation of production tubing and a rod pump.
Following tie-in, the Anshof-2A well will be tested to determine a long-term optimal rate, and commercial production will commence in conjunction with the existing Anshof-3 well. The workover rig will then be demobilized to the Welchau-1 gas liquids discovery well location to commence planned well work in preparation for testing operations.
ADX and its partners will benefit from operational synergies across their appraisal, exploration, and testing programs in Austria, thanks to ongoing production operations at the company’s Vienna Basin Fields and the Anshof Oil Field appraisal and development operations.
The discovery of a significant oil column at the Anshof-2A well is a positive development for ADX Energy. The increased oil production capacity and higher quality reservoirs are likely to boost the company's stock price as investors react to the news. The successful completion and tie-in of the well to the Anshof Permanent Production Facility will further enhance ADX's production capabilities and cash flow.
Investor Reaction:
Analysts are likely to react positively to the news, citing the significant increase in oil production capacity and the higher quality reservoirs encountered at the Anshof-2A well. The successful completion and tie-in of the well to the Anshof Permanent Production Facility will be seen as a strategic move to enhance production capabilities and cash flow.
Conclusion:
Investors should closely monitor the completion and tie-in of the Anshof-2A well to the Anshof Permanent Production Facility. The successful implementation of these operations will be crucial in maintaining investor confidence and ensuring long-term growth for ADX Energy.