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Off and pumping: ADX’s strong Upper-Austrian oil production comes in at the upper-end of expectations

The good oil out of Upper Austria is that Aussie-listed ADX has flowed about 75 barrels per day of light crude with no water during testing of its Anshof-3.

This is an encouraging result as it comes in at the upper end of the company’s expectation (between 40bpd and 100bpd) for the relatively thin net reservoir thickness at the crest of the Anshof structure.

It was also achieved without the need for acidisation to overcome reservoir damage from drilling. Acidisation in third-party offset wells have resulted in substantial increases in oil production.

More importantly for ADX Energy (ASX:ADX), subsequent wells drilled on the flank of the structure, where the Eocene reservoirs are expected to thicken, are expected to deliver higher oil production rates.

“We can now look forward to placing the well on early production via access to nearby infrastructure and planning the appraisal and development of Anshof with increasing confidence,” managing director Ian Tchacos said.

“This result is an excellent outcome delivered by our team on the ground and an important milestone in the potential commercialisation of the Anshof discovery.”

The company added that the results mean there is no need to revise RISC Advisory’s previous assessment that Anshof holds mean unrisked prospective resources of 6.6 million barrels of oil.

adx energy anshof 3 production crude oil operations
Oil testing operations during Anshof-3 well flow test. Pic: Supplied

Oil production and forward plans

The oil was produced during two flow periods from the Eocene reservoir oil column at Anshof-3.

Anshof-3 was shut in after each flow period to record a pressure build up, which is expected to provide further information in relation to the production capacity and possible drainage volumes.

Once this work is completed, ADX will acidise the well to improve production rates before running production tubing and a down hole pump in preparation for commercial production as Eocene reservoirs in the area typically have a low gas oil ratio and require pumping.

Planning is also underway to install an early production testing processing facility for commercial oil sales, which will be trucked to a nearby oil terminal prior to the company securing a production licence for the entire discovery.

 
 
 

This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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Read More: Off and pumping: ADX’s strong Upper-Austrian oil production comes in at the upper-end of expectations

2022-04-25 22:16:36

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