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ADX Energy Ltd (ASX:ADX) has achieved a significant milestone with the Anshof-2A well, marking a key development in the company's oil production efforts. This well, encountered updip from the water-wet Anshof-2 well and slightly down dip from the Anshof-3 discovery well, is now seen as being near the crest of the Anshof structureThis development is significant for ADX Energy, an ASX energy stock.
Key Highlights
- Enhanced Oil Column: The Anshof-2A well reveals a 6.5-meter oil column, approximately three times greater than the one found in the Anshof-3 discovery well, which currently produces around 110 barrels per day (bpd) of oil.
- Improved Reservoir Quality: The reservoir at Anshof-2A boasts 20% higher porosity and greater permeability compared to Anshof-3These factors are crucial for productivity, suggesting that Anshof-2A could potentially produce at least twice, if not three times, the volume of oil compared to the discovery well.
- Production Plans: ADX Energy is in the process of casing and cementing Anshof-2A for suspension as a production wellThis includes installing production tubing and a rod pump by early October, followed by tying the well into the Anshof permanent production facility.
Management’s Perspective
Executive Chairman Ian Tchacos expressed enthusiasm about the new well, stating, “We are very pleased to announce a second Anshof oil field producerThe well is expected to make a significant contribution to ADX’s oil production and cash flow within a few weeks when it is tied in to the recently installed and commissioned Anshof permanent production facility.” Tchacos also highlighted that Anshof-2A is the first of a two-well drilling program, with the next phase involving the Lichtenberg-1 gas exploration well and the testing of the Welchau-1 liquids-rich gas discovery.
Future Operations
The Anshof field, located in the ADX-AT-II licence, is part of a broader exploration and production strategyPreviously, oil production from Anshof-3 was constrained by regulatory limits, but a new permanent production facility with a capacity of 3,000 bpd of liquids has been installedAnshof-2A is expected to significantly contribute to filling this capacity, boosting both revenue and cash flow.
Following the completion of Anshof-2A, the workover rig will be used to prepare for testing at the Welchau-1 gas liquids discovery wellAdditionally, ADX plans to mobilize the RED Drilling & Services E-202 rig to drill the Lichtenberg-1 gas exploration well in the ADX-AT-I licence, targeting a reservoir with an estimated 21.1 billion cubic feet of gasThe cost of drilling this well, estimated at $8.5 million on a dry hole basis, is largely covered by partner MND Austria’s commitment.
ADX Energy Ltd is making notable progress with its oil and gas projectsThe successful development of the Anshof-2A well and upcoming drilling activities are set to enhance production capabilities and financial performanceThese developments position ADX Energy as a company with promising growth potential in the energy sector.
