ADX Secures Drill-Ready Licences in Austria
Sydney-listed ADX Energy has signed concession agreements with the Austrian government covering exploration, production and gas storage in Upper Austria, it said on January 11.
The agreements position ADX as the sole explorer in the Austrian part of the Molasse oil and gas basin, providing it access to 10 drill-ready exploration prospects with 42mn barrels of oil equivalent in prospective resources, the company said. This portfolio will complement ADX's existing Lower Austrian oil and gas fields, it said.
ADX acquired 3D seismic and well data in Upper Austria from RAG Exploration & Production in 2019, when it also purchased the latter's Gaiselberg and Zisterdorf oil and gas fields in Lower Austria. It also has an agreement in place giving it access to RAG's infrastructure.
"ADX has secured a very privileged acreage position in Upper Austria which is substantially enhanced by the existence of a drill-ready portfolio and guaranteed access to oil and gas infrastructure on favourable terms," company chairman Ian Tchacos said. The agreements are "the culmination of over 18 months of technical work, commercial discussions and relationship building with RAG E&P and the Austrian designated authorities by our local ADX team."
ADX plans to begin a farm-out process for the portfolio by the end of this month and start drilling "within a short time." It has already been approached by a number of interested parties. The company, which also operates in Italy and Romania, aims to develop hydrocarbons "quickly, cost effectively and with a high degree of commercial certainty," it said.
"We are particularly encouraged by the Austrian government’s continued commitment to domestic energy sector investment as well as the encouragement of renewable opportunities that exist such as geothermal or hydrogen storage," Tchacos added.