The Australian oil and gas company will launch a farmout process for the onshore portfolio by the end of this month
ADX Energy said that it has signed concession agreements with the Austrian Federal Ministry responsible for Mining (BMLRT) for exploration, production, and gas storage in Upper Austria (Upper Austria AGS).
The Australia-based company said that the concession agreements make it the sole exploration operator in the Austrian portion of the Molasse oil and gas basin.
According to ADX Energy, the new drill-ready portfolio in Upper Austria complements its lower Austrian oil and gas fields, which are said to have stable, long term, cash flow.
ADX Energy’s lower Austrian fields are located in the middle of OMV’s main area of operations.
The prospects included in the Upper Austria AGS licenses range from over one to over 15 million barrels of oil equivalent (MMBOE) resources, said the Australian firm. The average prospect resource size in the portfolio is 4.2MMBOE.
The acreage is located in a highly productive basin where the exploration success rate has been 48%, said the company.
ADX Energy expects to begin drilling within a short time and develop hydrocarbons in a quick, cost-effective manner, while achieving a high degree of commercial certainty.
The company claimed that prospects that are less than 1MMBOE are profitable because of their proximity to modern infrastructure. On the other hand, the company said that the larger prospects with over 10MMBOE resources, if successful, are very valuable in an onshore setting with proximity to infrastructure.
ADX Energy also has an infrastructure agreement with RAG E&P in place. The agreement is said to enable the certainty of costs and time needed for development, thereby leading to the quick development of projects and the commercialisation of smaller reserves sizes as well.
ADX executive chairman Ian Tchacos said: “ADX has secured a very privileged acreage position in Upper Austria which is substantially enhanced by the existence of a drill ready portfolio and guaranteed access to oil and gas infrastructure on favourable terms.
“The signing of the Upper Austria AGS is the culmination of over eighteen months of technical work, commercial discussions and relationship building with RAG E&P and the Austrian designated Authorities by our local ADX team.
“We are particularly encouraged by the Austrian government’s continued commitment to domestic energy sector investment as well as the encouragement of renewable opportunities that exist such as geothermal or hydrogen storage.”
The Australian oil and gas company plans to begin a farmout process for the portfolio by the end of this month.