Latest news with #ADXEnergy
West Australian
20-06-2025
- Business
- West Australian
ADX gears up for multi-well gas push in Upper Austria
ADX Energy is poised to spark a new energy chapter in gas-hungry Europe after the company locked and loaded seven shallow gas drill targets with a combined mean prospective net resource of 29 billion cubic feet (Bcf) of gas in Upper Austria's Molasse Basin. The play has been planned as a low-risk, low-cost exploration program. The total net resource estimate for all targets ranges from 12.1Bcf as a low-ball guesstimate and to 49.4Bcf at the upper end. The company expects to kick off a multi-well campaign across its fully owned Austrian exploration ADX-AT-I and ADX-AT-II licences as early as the fourth quarter of this year. Permitting, rig contracting, and land access negotiations have begun. Land for two wells is already secured. ADX has identified seven drill-ready prospects and is actively maturing a further four. Of the seven, five sit within the proven Hall Formation, which is a prolific Miocene-age sandstone reservoir that has already delivered more than 230Bcf of cumulative production across 83 fields in the region. ADX's shallow gas initiative was first announced to the market two years ago and has been developed using local know-how combined with the sharp eyes of world-class stratigraphic trap specialists. It sits close to existing pipeline infrastructure. Armed with cutting-edge seismic technology, ADX deployed advanced 3D imaging techniques to pinpoint gas-charged sweet spots hiding in permeable reservoirs. The targets also bear striking similarities to the seismic signatures of proven gas fields already producing across the basin. ADX sees the GOLD cluster targets as the crown jewels in its exploration portfolio. The company's 100 per cent-owned AT-II licence includes three shallow Hall Formation prospects – dubbed GOLD, GRAB and ZAUN – and holds a combined mean resource estimate of 13Bcf, with geological chances of success ranging from 55 per cent to a massive 81 per cent. The GOLD-1 well will be the first cab off the rank and will target two high-confidence gas sands, GOLD A and C, which the company thinks have the highest chances of success at 77 per cent and 81 per cent, respectively. The GOLD wells will be drilled to depths of just 700 metres to 850m using slim-hole designs and mobile carrier rigs, which should enable cost-effective drilling and an uber quick turnaround of as little as nine days per well. ADX says it plans to link any discoveries into cluster developments, tying multiple wells into centralised production hubs to cut capital and running costs and boost output. A dedicated processing facility has already been mapped out, drawing on an initial design capacity of 140,000 cubic metres per day, expandable to 280,000 cubic metres/day for the full cluster development. Beyond the GOLD cluster, the company is targeting two additional prospects, PIC and STEY, also in the ADX-AT-II licence area, which have a mean prospective estimated gas resource of 8.1Bcf and paydirt probabilities of 75 per cent and 68 per cent, respectively. The final two prospects, HOCH and SCHOE, sit in the ADX-AT-1 licence area 50 kilometres to the west of the GOLD cluster and are held in a 50:50 joint venture with industrial giant MND Austria. Although these targets are estimated to hold the biggest combined net mean resource of all the prospects at 14.4Bcf, their probability of coming in is lower at 62 per cent and 51 per cent, respectively. ADX, meanwhile, has opened its data room to farm-in partners, promoting the prospects as a fast-track pathway to gas production in a first-world jurisdiction with existing infrastructure and an underexplored resource base. The company says several groups have already expressed interest, with deals potentially timed to line up with the company's forecast drilling dates. As the company finalises its permits and hones its drill plans, ADX looks well-positioned to convert its shallow gas play into a significant revenue stream exactly when Europe needs it most. Is your ASX-listed company doing something interesting? Contact:
West Australian
04-06-2025
- Business
- West Australian
ADX lifts Austrian oil field stake to boost production and cash flow
ADX Energy has struck a savvy deal to expand its grip on the Anshof oil field in Upper Austria, by upping its economic interest from 50 to 70 per cent without shelling out a single euro in cash. 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:
West Australian
19-05-2025
- Business
- West Australian
ADX lines up multiple shallow gas targets in Austria
ADX Energy has prepped 6 shallow gas plays for drilling and has another 7 almost ready to be drilled in a region of Austria that is remarkably well endowed with infrastructure including nearby gas pipelines. The prospects in Upper Austria, were identified and developed across a two year period using AI and seismic data analysis conducted by international experts and the company's own local team. After identifying multiple low risk, shallow targets deemed to be an extension of proven, producing gas plays, management set out to have variations applied to its license area. The plan is to exploit the range of potentially highly profitable shallow prospects, referred to as its 'Shallow Gas Play' sitting near the pipeline infrastructure, into its ADX-AT-I and ADX-AT-II exploration licence areas. Variations include the relinquishment of certain areas and the addition of new contiguous areas, resulting in the company's total area under licence remaining about the same, at 1022 square kilometres. Nearby historical discoveries in the area have produced 220 billion cubic feet (bcf) of gas to date through a regionally extensive pipeline network. ADX believes the variations to its licence acreage have upgraded its prospective portfolio at no additional cost. It plans to drill four shallow prospects on its 100 per cent equity acreage, with a further seven gas prospects being matured towards development. Another two drill ready prospects are 50 per cent owned by ADX. The company says permitting is underway to drill the first cluster of three prospects by the end of this year. To identify prospects that compare favourably with historic discoveries, advanced seismic analysis was deployed using a combination of AI, seismic attribute and amplitude variation with offset (AVO) analysis. AVO is a seismic processing technique used to analyse the amplitude of seismic reflections and how they change with the distance between the shot point and the receiver. AVO analysis can help identify gas-filled reservoirs, distinguish between different rock types and assist in identifying the presence of fluids, such as water, oil or gas in the subsurface. It company says multiple low cost wells can be drilled in clusters, which will maximise production and minimise development costs utilising shared surface facilities. ADX has started discussions with potential farm-in partners to participate in its 100 per cent equity held acreage, with the aim to secure funding for the drill program planned for later this year. It will look to use the same partnership structure successfully employed with MND and MCF Energy, to attract financial investors or energy companies to become farm-in partners. Management has commenced well planning for the upcoming drilling and permitting works. The 'Shallow Gas Play' was first announced to the market in June 2023 and has been developed over two years using local knowledge combined with the geological interpretation of an international team of stratigraphic trap experts. Advanced seismic analysis was utilised to identify prospects containing likely gas-filled permeable reservoirs. Access to an extensive 3D seismic data set across the basin allowed for the seismic responses of new prospects to be compared with historic shallow gas discoveries. One prospect identified and showing a similar response to historic discoveries is the company's GOLD prospect, having a 6.4 bcf gross best case prospective resource. It is expected to be included in the first cluster of drilling, along with ADX's ZAUN and GRAB prospects. All are within close proximity to public pipelines, resulting in time and cost savings to develop gas resources. ADX set out with a plan two years ago to produce a portfolio of shallow, minimal risk and potentially profitable gas prospects and if it can now secure the backing of a cashed-up oil and gas player, it will be well placed to unleash the drill rig to test the full extent of its well located resources. Is your ASX-listed company doing something interesting? Contact:
West Australian
01-05-2025
- Business
- West Australian
ADX pockets $2.5M from three months of Austrian oil production
ADX Energy looks to be firing on all cylinders having opened up the valves on its Austrian oil operations boosting production by 13 per cent to 246 barrels of oil per day (BOPD) and banking $2.5 million of sales in the process. The company is also broadening its focus having recently acquired the prospective Sicily Channel in Italy looking to break into a new frontier. With drills ready to spin on its 'low-risk' Austrian gas prospects and a cash pile of $6.7 million, ADX believes it is charging toward a breakout year in exploration for Europe's energy-hungry gas markets. The company's recent Sicilian ambitions are expected to be permitted as soon as next month with the potential to tap into untested shallow, gas-rich reservoirs. On the exploration front, ADX says it is doubling down in Upper Austria. The company's ADX-AT-I and ADX-AT-II licenses, renewed until 2028, now include three drill-ready shallow gas prospects and up to seven more, identified using recent AI-enhanced 3D seismic. The low-cost, high-productivity targets — proven by historical wells — are just kilometres from infrastructure, offering the potential of quick commercialisation should the pending program prove successful. The company says it is currently in negotiations hoping to attract funding partners for drilling later this year, aiming to turn gas into greenbacks in quick time. The Welchau-1 gas discovery, a potential 807 BCF behemoth, hit a regulatory snag in the quarter with testing suspended pending an Upper Austrian court ruling based on environmental objections. ADX remains undeterred, planning to resume flow tests once cleared exploring deeper Jurassic oil and gas plays and reprocessed 3D seismic. Meanwhile, at the company's 346 km² Sicily permit, shallow reservoirs just 700m – 1300m in depth are waiting to be tested with historically proven gas, high productivity and proximity to producing fields. ADX plans to conduct additional 2D seismic studies and commission an independent resource assessment at the prospect, that under flexible permitting and national fiscal terms, could deliver cleaner gas to Europe's doorstep with the government's greenlight. Financially, ADX is sitting pretty with $6.7 million in cash and a new five-year crude sales agreement with OMV Downstream, covering two-thirds of its Austrian output at Brent-linked oil prices. The company says it is also fast-tracking permits for further Anshof oil appraisals and shallow gas wells, aiming for yet more near-term cashflow. Hopeful that Welchau-1 testing could resume soon, pending court approval, management insists the partnership talks are heating up, critical for funding the planned drilling blitz without exhausting the company's cash reserves. With Europe's gas prices soaring and import reliance sky-high, ADX remains poised to deliver on its exploration potential. Vienna Basin flow remains steady while Sicily's offshore licence promises plenty of upside, as the company hatches plans for a busy remainder to 2025 with money flowing into its coffers on the back of solid oil production sales. Is your ASX-listed company doing something interesting? Contact:
News.com.au
27-04-2025
- Business
- News.com.au
ADX is pushing its European oil and gas agenda with big moves ahead
ADX Energy has plans to boost existing oil production and explore low-risk, low-cost gas targets Gas play benefits from existing infrastructure and is expected to significant productivity Plans also in the works to resume Welchau testing and explore the Sicily Channel gas project Europe remains hungry for energy and with demand likely to climb further as data centres become more common, finding new sources of fuel – particularly gas – to supply generation is extremely important. Couple that with the desire to achieve as much energy security as possible and it is clear why companies such as ADX Energy (ASX:ADX) are focusing their efforts on finding and developing new sources of gas – and to a lesser extent oil – in Europe. The company has flagged several strategic priorities that will enable it to meet this objective. This include maximising its oil production at the Vienna Basin and Anshof oilfields in Austria, carrying out low-risk, low-cost gas exploration in Upper Austria, and finally pursuing high impact growth at its Welchau and Sicily Channel projects. Initial steps Speaking to Stockhead, executive chairman Ian Tchacos said the company had continued to do workovers at its Vienna Basin wells. 'We're also analysing a couple of well bores there that are probably not being optimally utilised and the possibility of drilling sidetrack wells and maybe an infill well. 'There's a possibility of getting our production rate up from around 200 barrels a day maybe to over 300 barrels.' He also flagged the potential of working with its neighbour OMV – a major Austrian petrochemical company – as some of their assets are not fully developed. Tchacos adds that while its Vienna Basin assets probably have another seven years of life left, they have virtually no royalty attached to them, meaning that anything that increases production will enhance profitability. ADX will also seek to drill at least one Anshof appraisal well with Tchacos saying that some targets could be reached with deviated wells from the existing facility while others could be vertical wells that will be tied back. Concurrently, the company will seek to commence drilling of its extensive gas portfolio to increase its exposure to Europe's well-priced gas market. 'We have been able to generate a prospect inventory of shallow gas prospects that have got a very high probability of success because they've already been successful nearby in the basin,' Tchacos said. 'We've been able to basically understand how the gas is distributed across the basin using a combination of AI and improved seismic processing and identified about 10-12 prospects.' He added the gas play is close to existing infrastructure and features targets that are shallow and cheap to drill, making them potentially highly profitable. 'Historically, these things were drilled 10-15 years ago looking for deeper oil because they didn't have the 3D seismic that has now been enhanced and processed to the state that it is nowadays. 'More recently, there were a couple of these that were actually outside our acreage that we were trying to get access to drill were drilled by their operator RAG and they came in as we expected.' Having worked on these targets for almost two years, ADX varied its exploration licence to take in more of the targets with plans to kick off operations by drilling up to three wells. 'We will try to drill them as a cluster so we can install a facility and a pipeline but the good thing is that they're also very close to open access infrastructure so that's going to be that's important just in terms of being able to get these things under production,' Tchacos said. 'They're pretty much 100% methane so they don't require a lot of processing and they're typically pretty good productivity with the sands expected to produce 5-10 million standard cubic feet of gas per day.' High impact growth ADX is also hoping to continue testing at Welchau-1 in the near-term with Tchacos saying that a judgement relating to a challenge to existing environmental clearances is expected soon. He also flagged that quite a bit of work had gone into studying Welchau Deep, which is essentially a new play, as well as other follow-up structures. Obviously we've been doing quite a bit of work on it and it is essentially a new play and there's a lot of follow-up potential within Welchau as well as follow-up structures. The final piece of the puzzle is the company's Sicily Channel exploration licence. 'We were informed by the ministry that we were offered the permit but there's a formal process for the award that we expect will conclude by the middle of May,' Tchacos said. 'We like that acreage a lot and we have identified a number of prospects. 'Again, what's interesting about this is the area was heavily explored for oil, there was an oil discovery in the area and the oil is deeper. 'There's very good quality 2D seismic across this because of ENI and Shell actually held this acreage through around 2014.' 'On that dataset we can see some nice prospects but also what we've been able to see from going through old well reports is that there was also gas across a lot of these intervals while they were drilling the wells.' He added that while these gas intervals were not tested, they gave the company plenty of confidence that the amplitudes seen on seismic were likely to be gas. 'This acreage has been further enhanced by the new Cassiopea field within 100km of us that's being developed by a consortium of ENI and Energean. 'Those fields are in a very similar geological setting to where we're at. There's not a big reserve. It's probably around 300 or 400Bcf (billion cubic feet). We see at least that sort of potential in our block, so it would also make it sort of a very nice sort of tie-in opportunity.' Road ahead ADX is looking to mature the first three or four of its shallow gas locations by the end of May and start permitting in order to enable drilled by the end of 2025. 'The gas in terms of production rate and cash flow can be very exciting and very lucrative,' Tchacos added. 'We've got a bit of interest from potential farminees to come in and drill some of these things with us. 'The nice thing about that is because they're relatively shallow and quick to drill – the sort of things that we can start with drilling two or three wells and then go on to drilling further wells because we've identified quite a few of these things. 'If we can put it together in two or three drilling campaigns then we can also lower costs.' He added that the oil appraisal at Anshof could follow a similar timeline. In regards to the Sicily Channel project, he said that once the block is formally awarded, the company will buy more available seismic and then come up with an independent resource assessment as its ultimate goal would be to secure a partner and drill a well by the end of 2026.
