ADX Energy Ltd (ASX:ADX) has achieved a significant milestone in expanding its exploration activities in Upper Austria by securing a EUR 4.95 million Energy Investment Agreement (EIA) with MND Austria a.s. (MND).
Figure 1: Map showing the Investment Area within the ADX-AT-I licence which includes the LICHT and IRR gas exploration prospects
The completion of the transaction involves MND reimbursing costs of EUR 0.45 million to ADX and subsequently providing EUR 4.5 million for exploration drilling.
This investment earns MND a 50% economic interest in the Exploration Investment Area within the ADX-AT-I license in Upper Austria.
The transaction is subject to the approval of the Investment Area partnership documentation by the Austrian designated authority, with a form previously accepted for MND’s economic participation in the Anshof Field Area.
The Investment Area presents several gas prospects, with LICHT and IRR being the primary candidates for drilling in the second half of 2024.
Both prospects offer substantial gas resources upside potential and are deemed mature for drilling. The LICHT prospect has already secured a drilling permit, including environmental clearance, positioning it for swift exploration activities.
Upon completion of the transaction, ADX will retain its role as the operator and a 50% economic interest in the Exploration Investment Area. Additionally, ADX will maintain a 100% interest in the remaining portions of the ADX-AT-I license, encompassing adjacent gas exploration prospects such as OHO, ZAM, and the GMU geothermal/oil and gas combined energy prospect.
Figure 2: 3D rendering of the IRR prospect mapped on 3D seismic and supported by AVO anomalies indicating gas filled reservoir. IRR is an analogy to the close by gas field. The insert shows the geological model suggesting the reservoir stemming from turbidite deep water sediments
Exploration Prospects Details
The IRR gas prospect boasts significant technical prospective recoverable gas resources of 38 BCF, with a considerable stratigraphic upside potential of 79 BCF (P10).
The LICHT prospect, with best technical recoverable resources of 16.2 BCF, is defined by a four-way dip closure and exhibits similarities to the IRR prospect, including an AVO anomaly indicative of a gas-filled reservoir.
It is crucial to note that prospective resources are estimates and are subject to both the risk of discovery and development. Further exploration, appraisal, and evaluation are required to determine the existence of potentially recoverable hydrocarbons.
MND Austria a.s., the parent company of MND, is a highly credentialed European energy company that generated approximately EUR 8.5 billion in revenue in 2022.
MND’s diverse businesses include Production and Exploration, Drilling and Services, Energy Storage, and Energy Trading, with active operations in multiple European countries.
Austria marks a new entry for MND’s Exploration and Production Business, indicating the Company’s commitment to expanding its presence in the region.
ADX Executive Chairman Ian Tchacos expressed enthusiasm about the collaboration with MND, highlighting the additional funding, skills, experience, and operating capability that MND brings to the table.
“The Board of ADX is delighted to have entered into another investment agreement with MND which will accelerate our gas exploration program in Upper Austria,” he said.
“MND brings additional exploration funding of up to EUR 4.95 million as well as extensive skills, experience and operating capability. We are very pleased to further extend our collaborative relationship with MND across the Anshof Oil Field as well as exploration drilling opportunities within the ADX-AT-I licence.”
He emphasised that this partnership further extends the collaborative relationship between the two companies, endorsing the capability of ADX’s technical team.
“This transaction brings the number of industry funded wells in ADX’ Upper Austria licences to four wells which we expect to drill within the next 12 months. This investment by MND is a further endorsement of the capability of our technical team who continue to originate and mature an exceptional exploration prospect portfolio in Upper Austria.”
ADX Energy’s Australian Stock Exchange-listed share price is currently trading at $0.1 (1:00pm UTC+ 8 hours).