ADX Energy (ASX: ADX) has kicked off production at its latest well in Upper Austria, pumping out a further 70 barrels per day to lift total daily output at the company’s Anshof oil field to 170 barrels.
It follows the discovery in September of a 6.5m vertical oil column at the Anshof-2A (ANS-2A) well, which is three-times wider than the Anshof-3 well at the same location.
Management says Anshof-2A has now been completed as a production well and tied into the Anshof permanent production facility.
A telemetry control system has also been installed, allowing unmanned operation across the entire Anshof production system.
Anshof-2A’s new production of 70 barrels per day adds to the Anshof-3 well churning out about 100 barrels daily.
Both producing wells are within the ADX-AT-II exploration licence in Upper Austria. ADX operates and holds a 60 per cent interest in the Anshof-2A well in a joint venture with European industry giant MND Austria.
Management says the flow performance of oil and water from the new well is excellent, however the initial water rate of 134 barrels per day is considered high.
It plans to monitor the well’s production to determine the longer-term trend and to increase oil production when appropriate.
The high-quality Anshof-2A oil column has a 20 per cent higher porosity reservoir than Anshof-3 and a higher permeability. It was drilled by Austrian contractors RED Drilling & Services and reached a total depth of 2195m in just 10 days.
The well pierced the high-quality Eocene sandstone reservoirs from 1586.5m.
ADX expects the Anshof-2A well to produce more oil than the Anshof-3 well. It also offers the potential for its daily output to reach multiples of its current production, with ADX aiming to produce more than 1000 barrels of oil per day as its production facility by the 2025-26 financial year.
The Eocene reservoirs at Anshof-2A are similar in thickness and quality to the reservoirs encountered in the down dip Anshof-2 well. The company says the more productive wider reservoirs are likely to be prevalent in the eastern part of the Anshof field.
Anshof-2A marks the first of two additional production wells in the east of the country. Both are designed to be connected at the Anshof permanent production facility, with the second planned for early next year.
ADX is pursuing production growth from appraisal potential within the Anshof field area, in addition to field exploration in the nearby ADX-AT-II exploration licence.
The company is assessing the Anshof field’s potential with its partner MND, which is committed to funding 60 per cent of an appraisal well within the Anshof field area.
ADX has recently mapped several 100 per cent owned exploration prospects it plans to drill and may look to co-fund via future partnerships.
The company believes a combination of appraisal potential within the Anshof field area and exploration prospects within its ADX-AT-II licence offers strong growth potential through additional production and cash flow generation.
With two producing wells and a kitbag of potential targets to focus on, busy times are ahead for ADX.
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