- ADX Energy (ADX) is extending its hedging position by locking in another contract with BP at an average oil price of US$71.85 (A$98.61) per barrel
- The new price is locked in from November to the end of March and is an improvement on its last prices of US$66.03 and US$71.71 per barrel
- Around 40 per cent of ADX’s forecast oil production from the Vienna Basin will flow to BP over the new fixed price swap, or 14,930 barrels of oil all up
- The energy stock expects the Brent crude oil price to remain above US$70 (A$96.07) per barrel heading into 2022 after sustained increases in 2021
- Company shares closed down despite today’s news, 7.14 per cent in the red at 0.7 cents per share
ADX Energy (ADX) is extending its hedging position by locking in another contract with BP at an average oil price of US$71.85 (A$98.61) per barrel.
The company announced its extended hedging position on Monday, locking in the new price from November 1 to March 31 next year.
The new fixed price locked in by ADX is an improvement on the energy stock’s last prices of US$66.03 and US$71.71 per barrel.
These company credited uplifted market conditions for its ability to lock-in the new fixed price.
All up, around 40 per cent of ADX’s forecast oil production from the Vienna Basin will flow to BP over the new fixed price swap.
That works out to be 14,930 barrels of oil, or 100 barrels of oil per day. ADX reports the Gaiselberg and Zistersdorf average field production in early 2021 was 306 barrels of oil per day.
The energy stock said it expects the Brent crude oil price to remain above US$70 (A$96.07) per barrel heading in to 2022 after sustained increases in 2021.
It plans to use the increased net revenue to fund production enhancing well work at the Gaiselberg and Zistersdorf fields.
ADX stated it also wanted to “continue a program of portfolio growth initiatives for oil and gas as well as compatible green energy production opportunities.”
Shares in ADX Energy closed down 7.14 per cent at 0.7 cents per share.