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ADX Energy acquires to Austrian oil and gas fields

Energy
ASX:ADX      MCAP $48.26M
03 December 2019 13:15 (AEST)

ADX Energy (ADX) has officially acquired the Zistersdorf and Gaiselberg oil and gas fields located in the Vienna Basin, Austria.

As announced in July, ADX will also receive data collected by RAG regarding potential exploration targets.

On November 18, ADX received final approvals from the Austrian Government to finalise this purchase.

The initial asset purchase price was 4 million euros (A$6.4 million) but the final acquisition cost came down to 2,262,074 euros (A$3.6 million), which accounts for net after-tax production revenues minus capital costs.

A Data User Agreement providing ADX with exclusive access to RAG Exploration Data, including 3650 square kilometres of 3D seismic, in Upper Austria will now come into legal force.

Securing access to this exploration database surrounding RAG’s core production fields is a massive advantage for ADX.

Additionally, ADX has secured facilities access arrangements to RAG’s extensive oil and gas infrastructure providing certainty of rapid development for any exploration success.

This positions ADX with ready to drill prospect inventory based on modern 3D seismic in a highly prospective producing basin with certain access to infrastructure.

“We are delighted to finally complete this transformative transaction thereby achieving a significant milestone for the company,” ADX Executive Chairman Ian Tchaos said.

“ADX is now a producer and the operator of production assets in Austria, a prime jurisdiction in terms of oil and gas product pricing, access to infrastructure and political stability,” he added.

ADX is steady today with shares trading for 0.9 cents apiece in a $13.01 million market cap.

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