- ADX Energy (ADX) enjoyed a boost in sales revenue and oil production in the March quarter, following successful well repairs and strengthened commodity prices
- Owed largely to a 43 per cent increase in the Brent oil price, ADX achieved an approximate 51 per cent increase in sales revenues on December figures
- A series of well workovers also meant the ASX-lister was able to pump up its oil production to average 260 barrels of oil equivalent per day (BOEPD)
- Looking ahead, ADX has laid plans to review the potential of its Zistersdorf and Gaiselberg Fields tenements and continue pursuing a business case for an underground hydrogen storage solution.
- ADX Energy shares are off 5 per cent on the market, trading at 1 cent
ADX Energy (ADX) enjoyed a boost in sales revenue and oil production in the March quarter, following successful well repairs and strengthened commodity prices.
Owed largely to a 43 per cent increase in Brent oil price during the quarter, ADX achieved an approximate 51 per cent increase in sales revenues from EUR€708,119 (about A$1.1 million) in the December 2020 quarter to EUR€1,068,762 (roughly A$1.6 million) in the March 2021 quarter.
ADX also managed to resume and increase oil production to average 260 barrels of oil equivalent per day (BOEPD) after fixing pump failures in wells following an electricity outage from a flood in October last year.
The company estimates the restoration of production from affected wells has resulted in a 9 per cent increase in average production for the quarter.
Meanwhile, ADX said gas prices during winter continued to strengthen resulting in a price increase of 27 per cent compared to the previous quarter.
Further to this, ADX advised the well workover completed in April accessed an additional behind pipe potential, resulting in approximately 150 BOEPD of additional field production.
The company incurred hedging losses during the quarter of EUR€274,449 (approximately A$427,107) due to approximately 80 per cent of production being hedged at approximately US$43.00 per barrel (about A$55.12 per barrel).
As a result, ADX has elected to reduce the level of hedged production to 25 per cent of the forecast production rate from 30 April 2021.
ADX reported a cash balance at the end of the quarter of A$4.67 million.
Looking ahead, the ASX-lister has laid plans to review the ongoing resource potential of its Zistersdorf and Gaiselberg Fields tenements and continue pursuing a business case and prefeasibility studies for an underground hydrogen storage solution.
ADX Energy shares are off 5 per cent on the market, trading at 1 cent at 1:04 pm AEST.