ADX quarterly clocks $2.4m in Austrian oil revenue
ADX Energy churned out $2.4 million in oil revenue from an average of 231 barrels of oil equivalent per day (BoEPD) in the past financial quarter after production from its Austrian oilfields rose 31 per cent.
The financial boost comes as the company prepares for the spudding of its Anshof-2A oil side-track appraisal well in September and the first gas exploration well at its ADX-AT-I license the following month. Management says the increased oil and gas sales during the June quarter was primarily down to its Anshof-3 well, which contributed significantly following the installation of the Anshof field permanent production facility that has a capacity of 3000 barrels per day (BPD).
The well, which was reinstated in April, contributed 46 barrels of oil per day (BOPD) to the total net sales. However, now at 95 per cent uptime, it is producing an average of 100 BPD and that number had risen to 116 BPD at the end of the quarter.
The Vienna Basin fields produced steadily, averaging 185 BoEPD – a 5 per cent increase from the previous quarter.
Brent oil prices averaged US$84.94 (AU$129.5) per barrel, while gas prices averaged €27.78 (AU$45) per MWh. Sales revenue for the quarter was $2.4 million, up from $1.75 million in the previous three months.
ADX continued its hedging strategy by opening up several fixed-price swap contracts to lock in favourable oil prices for specified periods for the rest of the year.
Permitting, planning, procurement and rig contracts are in place for the Anshof-2A oil appraisal well that will be targeting a thicker Eocene reservoir section and which will add a further 300 to 500 BoEPD. The company’s goal is to continue drilling wells at Anshof to produce more than 1000 BoEPD by FY26.
Each well drilled could net it up to $20 million in profit at the current oil price.
Additionally, the company will flow-test its Welchau-1 discovery in the Welchau Investment Area, 20km south of Anshof, later in the year after the well showed strong sniffs of gas liquids and light oil prior to the being shut off in March. Analysis on the intersected 450m hydrocarbon column is ongoing, with a revised resource estimate likely to be released in early September as the company awaits environmental approvals sometime in the next few months.
Lastly, on the exploration front, ADX is gearing up to plunge into its ADX-AT-I gas exploration well – also part of the Welchau Investment Area –with an October spud scheduled. The well, funded to the tune of €4.5 million (AU$7.4 million) by MND Austria for a 50 per cent equity stake, follows on from the exceptional success of the Welchau-1 to focus on chasing more gas.
As of the end of the quarter, ADX says it is well-funded with $12.6 million in cash in the bank, following significant expenditure on the Welchau-1 well and the Anshof production facility.
The company appears well-positioned and has the bit well between its teeth in anticipation of an active second half of this year. With multiple drilling and exploration projects planned, improving cash flow and a robust financial position, it could well become a candidate for some renewed investor attention.
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