ADX Energy fires up drill rig as Austrian oil, gas revenue jumps

ADX Energy has dialled up its Austrian production engine, with a 4.4 per cent lift in oil output to 200 barrels of oil equivalent per day and a strong 31 per cent jump in sales revenue to A$2.1 million for the March quarter as its assets begin to hum in unison.

With Brent crude up 27 per cent over the period, ADX has capitalised on the stronger pricing, converting its higher output into a sharp lift in sales.

That uplift in production was fuelled by improved performances from its Vienna Basin wells and the company’s Anshof oil field, where disciplined optimisation managed to coax extra barrels from established wells.

In the Vienna Basin, smart workovers from subsurface fixes have restored reliability and nudged output higher. At Anshof, the twin-well setup delivered impressive uptime, while reservoir behaviour confirmed a connected oil pool supporting stable recovery.

Notably, the infrastructure at Anshof is designed to handle 3,000 barrels per day, giving ADX ample capacity to fast-track the higher volumes to market.

We are focusing on maximising developed oil and gas production by seeking opportunities to enhance existing production, commercialise undeveloped reserves and to pursue compelling near field oil appraisal and exploration opportunities.

While oil keeps the base steady, ADX’s gas ambitions are gearing up for lift-off. The company’s HOCH-1 shallow gas well is now drilling ahead, targeting the prolific Miocene Hall Formation, where nearby wells have previously flowed up to 9 million cubic feet per day.

With a mean 8 billion cubic feet of gas (Bcf) resource potential and a fast-track path to total depth, HOCH-1 is shaping up as a quick-cycle hit ready to plug straight into the production mix.

The shallow gas strategy is designed as a repeatable, scale-up play. HOCH-1 is first off the rank, with GOLD and SCHOE lined up behind it, all targeting the same shallow, high-productivity sands that, if they come in, could be swiftly tied into existing infrastructure and fast-tracked into Europe’s gas-hungry market.

In addition to its shallow gas push, ADX has been quietly assembling a suite of up to ten additional shallow gas prospects near its producing Anshof field. The company has just wrapped a detailed review of one particular appraisal prospect, dubbed SGB, and has finalised a resource assessment for an oil target called PERG, setting the stage for a potential upgrade - particularly at PERG - expected to land early in the June quarter.

Meanwhile, ADX’s Welchau oil and gas well continues to whisper of something bigger. Testing has confirmed a light oil accumulation, with the company now sizing up the structure at a mean prospective resource of 387 billion cubic feet of gas (Bcf) and 31 million barrels of oil and condensate (Mmbo). With deeper gas-condensate targets still sitting below the stacked system still appears to have plenty to offer.

Elsewhere, the company’s Sicily Channel permit in Italy is steadily stepping forward, with ADX mapping a sizeable 619Bcf gas resource. Ongoing seismic reprocessing and data acquisition are refining targets and readying the project for its next phase.

Macro conditions are adding momentum to the mix. Europe’s scramble for secure, domestic gas supply continues to underpin pricing strength, with elevated energy markets providing a favourable backdrop for new production. For ADX, that means each incremental barrel or cubic foot carries amplified economic weight.

With production ticking up, hydrocarbon prices surging and ADX now powering through and a pipeline of drill-ready prospects, the company looks to be building momentum, with steady gains turning into sustained growth.

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