ADX lifts Austrian oil field stake to boost production and cash flow
The Perth-based energy player, through its wholly owned Austrian arm Kathari Energia, has finalised an agreement to acquire Xstate Resources' 20 per cent economic interest in the producing field.
In a textbook example of smart dealmaking, ADX offset the €547,075 (A$962,847) purchase price against unpaid cash calls owed by Xstate, leaving its bank balance untouched.
ADX's move increases the company's stake in the Anshof-3 production well from 50 to 70 per cent and lifts its share of output from the well to 72 barrels of oil per day (BOPD), up from 58 BOPD.
Across its Austrian operations, ADX's daily production now sits at a healthier 307 barrels of oil equivalent (BOEPD).
Xstate farmed into the Anshof-3 discovery in 2021. However, the company has now agreed to exit the project entirely to simplify its portfolio, thereby relinquishing all rights and obligations in exchange for giving up its 20 per cent share of the Anshof oil field.
Czech group MND Austria still holds the remaining 30 per cent interest in the Anshof field, including a 30 per cent cut of the Anshof-3 well and a beefier 40 per cent slice of production from Anshof-2A.
As ADX remains operator of the field, the company's uplift in ownership also includes control over the 3000 barrels-per-day-capable production facility on site. The plant is an automated hub that processes, stores and offloads oil, while using associated gas for power generation.
The Anshof field sits in the ADX-AT-II licence, which is already proving fertile ground for oil production and near-field exploration. The area also includes Anshof-2A, currently producing an average of 39 barrels of oil per day (BOPD), in which ADX retains a 60 per cent stake.
In its latest quarterly, ADX revealed the company had hauled in $2.5 million in sales for the three months to March, increasing its production by 13 per cent to 246 BOEPD. The latest ownership lift is likely to see the cash number rise again.
Turning to exploration, ADX is going all-in on its Upper Austrian grounds, where the company is teeing up a flurry of drill-ready gas targets across its recently extended ADX-AT-I and ADX-AT-II licences - now secured through to 2028.
Six shallow gas plays are locked and loaded for drilling, with another seven nearly good to go. All sit in a sweet spot rich in infrastructure and crisscrossed by gas pipelines.
All the new targets have been pinpointed using cutting-edge, AI-enhanced 3D seismic, giving ADX a modern edge in a region that's already coughed up 220 billion cubic feet of gas from nearby historical discoveries.
ADX has kicked off talks with potential farm-in partners keen to get a slice of the action, and says it expects to lock in funding for a high-impact drilling campaign slated for later this year.
The company is also casting its eye beyond Austria, staking a claim in the Sicily Channel off Italy. The newly acquired licence area is shaping up as a potential gas frontier, with permitting expected in the coming weeks. If approvals land as expected, ADX could soon be unlocking a new gas province rich in high-pressure, gas-charged reservoirs.
As oil markets remain tightly poised and production assets in stable jurisdictions such as Austria gain value, ADX's play at Anshof could prove a masterstroke - not just for today's barrels, but for tomorrow's discoveries.
Is your ASX-listed company doing something interesting? Contact:
matt.birney@wanews.com.au
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