ADX Energy’s Austrian oil venture has received backing from Xstate Resources after it agreed to fund 40 per cent of ADX’s Anshof well up to €1.8 million in order to secure 20 per cent of the broader prospect area.
Notably, under the terms of the agreement Xstate has an option to fund an additional 40 per cent of a second well on either the Anshof prospect area or the larger Anshof Farmin area. Funding the second well will see Xstate acquire a 20 per cent interest in the much larger Anshof Farmin area.
The company says it expects the Anshof well will be spudded by Christmas after recently receiving the necessary approvals to commence drilling.
The recent backing by Xstate follows an independent review by oil and gas advisory firm, RISC, that earlier found the Anshof prospect to have a mean un-risked prospective resource of 6.6 million barrels of oil equivalent and a 43 per cent chance of success. In the same review, RISC found a second prospect – OHO -to have a mean un-risked prospective oil resource of 17 MMBOE and a 20.4 MMBOE gas resource, with a 24 per cent chance of success for both resources.
The Board of ADX is delighted to welcome Xstate to participate in our Upper Austrian exploration program. The farm-in represents a vote of confidence for the Anshof prospect. The farm-in carry and Xstate’s ongoing participation in Anshof will assist ADX to rapidly progress and fund the development of any discovery as well as any ongoing appraisal drilling thereby accelerating the pathway to cash flow.
The recent work bookends an eventful end-of-year for the European-focused explorer that only a few weeks ago announced it had more than doubled its hydrocarbon reserves in Austria, with the net present value for its 1P reserves is worth $8.7m and 2P reserves are worth $24.4m.
Away from its rapidly progressing oil and gas ventures, the company is also set to enter the green energy revolution, recently signing a Memorandum of Understanding with renewable energy provider Windkraft Simonsfield to manufacture and store “green hydrogen” in its depleted oil wells.
ADX also has a carbon dioxide sequestration and geothermal project with Siemens Energy in the works.
Xstate Resources decision to fund almost half of one of ADX’s wells and potentially stump up again for another represents a major shot in the arm for company, particularly after independent oil and gas advisory firm, RISC gave the project the green light.
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