ADX Energy's Anshof-2A Well Begins Production, Enhancing Oil Output
ADX ENERGY LTD (ADX) Share Update December 2024 Wednesday 11th
ADX Energy Commences Production at Anshof-2A Well
ADX Energy Ltd (ASX:ADX) has announced the commencement of oil production from its Anshof-2A well, significantly enhancing its output from the Anshof Oil Field in Upper Austria.
Instant Summary:
- Anshof-2A well begins production with 70 barrels of oil per day.
- Anshof Oil Field production increases to 170 barrels per day.
- ADX holds a 60% economic interest in the Anshof-2A well.
- High-quality Eocene sandstone reservoirs with a 6.5-meter net oil column.
- Potential for further appraisal and exploration in the Anshof Field Area.
Production Details
On the 17th of September 2024, ADX Energy announced that the Anshof-2A well intersected a 6.5-meter net vertical oil column in high-quality Eocene-aged sandstone reservoirs. This was a significant finding, as the oil column is approximately three times that of the Anshof-3 discovery well, which has been producing since October 2022.
The Anshof-2A well has been completed as a production well with a rod pump installed, and it is now tied into the Anshof permanent production facility. The well started production at an oil rate of 70 barrels per day and a water rate of 134 barrels per day, increasing the total field production to approximately 170 barrels per day.
Exploration and Appraisal Opportunities
ADX Energy is actively pursuing further growth opportunities within the Anshof Field Area and nearby exploration prospects. The company is working with its partner MND to assess the Anshof Appraisal Potential, with MND committed to funding 60% of a future appraisal well.
Additionally, ADX has mapped several Near Field Exploration prospects held at 100% equity, which are being matured for drilling. These prospects offer high-value growth potential that could rapidly translate into additional oil production and cash flow for ADX.
The commencement of production at the Anshof-2A well is a positive development for ADX Energy, as it enhances the company's oil output and strengthens its position in the Anshof Oil Field. The high-quality reservoirs and significant oil column suggest potential for increased production over time. This development could improve investor confidence and positively influence ADX's stock price.
Investor Reaction:
Analysts are likely to view the production start at Anshof-2A as a positive step for ADX Energy, given the well's potential to boost overall output. However, the high initial water rate may raise concerns about long-term production efficiency, which ADX plans to monitor closely.
Conclusion:
Investors should keep an eye on ADX Energy's ongoing appraisal and exploration activities in the Anshof Field Area, as these efforts could lead to further production increases. Staying informed about ADX's strategic developments will be crucial for making informed investment decisions.