ADX unveils beefed up gas exploration targets at big Austrian portfolio

ADX Energy has turbocharged its Austrian oil and gas exploration potential, unveiling a beefed-up inventory of 24 drill-ready prospects packing a mean prospective resource of 374 billion cubic feet (Bcf) of gas and 31 million barrels (mmbbl) of oil net.

The company says its mix of low-risk, cash flow-ready shallow gas and oil plays and high-impact, big-ticket prospects has ADX primed to become a major contributor in Europe’s energy-hungry hydrocarbons market.

The company’s ADX-AT-I and ADX-AT-II licences are turning into a goldmine of opportunity. They span five proven hydrocarbon plays including its shallow gas prospects, near-field oil tie-ins and large gas traps with associated oil resources.

Its latest update has added a handy eight new priority prospects while culling four, including the recently drilled Welchau-1 well, to deliver an upgraded gas tally and a refined oil outlook for next year’s exploration season.

The company says it is also leveraging 3D seismic and AI-driven imaging to pinpoint high-value targets in the prolific Molasse Basin and at its Sub-Flysch gas play south of its licences.

ADX will kick off next year’s multi-well campaign with its Gold-1 well, targeting a shallow gas mean resource of 39.1Bcf across eight targets at the project, starting with Gold.

The company says the targets are its lowest risk and have a considerably lower cost to test, with an estimated success probability up to 81 per cent. The prospects sit close to existing gas pipelines, promising rapid commercialisation.

At ADX’s producing near field oil play, centred on its Anshof production facility, has an additional seven prospects waiting to be tapped. The cash flow juggernaut packs a mean net of 14.3mmbbl of oil and 4.3Bcf.

With the 3000 barrels-per-day Anshof facility working away, one drill-ready target could deliver high-value oil within six months, building on ADX’s recent 23 per cent production surge last quarter and leaving it cashed up for exploration.

For the big punters, ADX’s Welchau play and its Rossberg oil and Welchau Deep gas targets could take the company to the promised land, with their mean estimate of 125.4Bcf of gas and 19.6mmbbl of oil resources. The company has confidence in the plays, despite the Welchau-1 well no longer being a prospect.

ADX’s final major play is Sub-Flysch, tucked under an underexplored thrust belt in ADX-AT-I, with four gas condensate prospects holding a considerable mean of 251.8Bcf of gas.

The company is reprocessing 3D seismic to derisk deep targets at Sub-Flysch, positioning them for farm-in deals to share the large project’s inherent risk and inevitable capital expenditure.

ADX’s portfolio has evolved dramatically over the past two years with eight new prospects boosting gas resources from 71.6Bcf to 374Bcf.

With permits in progress for four near-term wells and farmout talks heating up for high-impact plays, ADX is capitalising on Europe’s soaring gas prices and hunger for local energy.

As ADX opens its data room and locks in a drilling partner, the company will continue to tap into its high upside exploration plays, backed by healthy and increasing oil production at its Anshof production facility.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au