ADX sets January date for $350m Austrian gas assault

Résumé détaillé

ADX Energy has locked in a rig for a January drill date for its 8.3Bcf GOLD-1 gas prospect in Austria, as it also gears up to test its recent nearby HOCH-1 gas discovery in December.

ADX Energy has locked in a drill rig and set a January spud date for its GOLD-1 shallow gas exploration well in upper Austria, targeting a mean prospective resource of 8.3 billion cubic feet (Bcf) of gas.

The company says the rig is now contracted and will mobilise in the new year for a quickfire 14-day drilling program.Well pad and site construction is expected to be wrapped up by the end of this month.

Notably, ADX is also gearing up for a crucial second phase of testing at its recent nearby HOCH-1 shallow gas discovery next month, setting up a news-heavy, critical period for the emerging Austrian hydrocarbon player.

The GOLD-1 well will be drilled at the company’s Upper Austria project, where ADX is the operator and currently holds a 100 per cent economic interest in the GOLD Cluster Area. The high-impact well is designed to target highly productive, proven shallow gas reservoirs within Miocene-aged sandstones of the Hall formation.

ADX says the well has a hefty 81 per cent chance of technical success, based on seismic amplitudes management believes could be gas-bearing and that compare favourably with its recent drilling success in the Hall formation at HOCH-1.

The shallow nature of the target and its proximity to existing pipeline infrastructure could pave the way for a rapid development cycle and compelling economics should the drill bit hit paydirt. A company study based on a conservative gas price of US$68.6 per barrel equivalent estimates net project revenue of US$38.7 million (A$56.6 million) from a modest investment of just US$4.1 million (A$6 million).

However, European gas prices are currently running much hotter at around US$168 per barrel equivalent. At these elevated prices, ADX estimates a discovery of around 8Bcf could generate up to an eye-watering US$244.8 million (A$358 million) in sales revenue.

ADX has further de-risked the exploration campaign, with London-listed Empyrean Energy securing a 10 per cent stake in the GOLD Cluster Area in return for…

The…

Début de l'article, extrait de The West Australian. Pour lire la suite, ouvrez l'article chez le média.