With the license, ADX will expand the oil field development, which includes the drilling of two development wells, in addition to the already-producing Anshof-3 discovery well
ADX will develop Anshof oil field. (Credit: WORKSITE Ltd. on Unsplash)
Austria’s Ministry of Finance has awarded ADX VIE (ADX) a production license to develop Anshof oil field, located within the ADX-AT-II exploration license in Upper Austria.
The license provides ADX with a regulatory framework for the development of the Anshof oil field, including the planned drilling of Anshof-2 and Anshof-1 wells, starting from the third quarter of 2023.
ADX will drill Anshof-2 and the Anshof-1 development wells from the same site as the Anshof-3 well, to target thicker reservoir intersections on the 25km2 mapped structure.
A long-term production test at Anshof- 3 well, started in October 2022, has been producing light crude oil at an average stable rate of 113 barrels of oil per day.
The production performance from Anshof-3 has delivered at the upper range of predrill expectations during the ongoing well test, said the company.
ADX intends to increase the average daily oil production to around 150 barrels, once the crude oil storage capacity at the Anshof-3 well site is expanded in the second quarter.
ADX executive chairman Ian Tchacos said: “The Board of ADX is delighted by the award of the Anshof production license less than 12 months after the initial testing of the Anshof-3 discovery well.
“Our management and operating team in Austria are developing a transformative new production asset for our Company in a very short time frame.
“Anshof has substantial independently assessed reserves and production potential that is expected to provide rapid revenue growth for ADX.
“We are especially appreciative of the Austrian government support, well-defined and transparent permitting processes, together with a favourable operating environment, which will enable ADX to further contribute to Austria’s economy and energy security.”
ADX holds an 80% ownership interest in the Anshof field area and is also its operator.
The company fully owns the remaining areas of the ADX-AT-II exploration license, including near-field exploration adjacent to the Anshof field.
It intends to lease an early production unit (EPU) to produce the Anshof-3 well, process the produced oil, and sell it to the OMV refinery near Vienna.
The EPU will deliver oil and gas separation, power generation, well site storage, offloading and telemetry control systems at the Anshof-3 well location.
The company is currently preparing to drill the Anshof-2 well starting from Q3 2023 and Anshof-1 well from a date yet to be determined.
The Anshof-2 well will be developed as a high-angle well and will appraise the extent of the downdip oil in the structure, to optimise the well oil flow rate and potential reserves recovered.
The Anshof-1 will be drilled in a more crestal part of the structure, in a thicker part of the Eocene reservoirs relative to the Anshof-3 well, in the western part of the structure.