- ADX Energy (ADX) enhances its oil price hedging with BP for the Vienna basin field production
- The new agreement will use an average Brent crude oil price of US$71.71 (A$96.14) per barrel
- This is a jump from the previous contract of US$44.34 (A$59.44) per barrel
- The new contract commenced on July 1 and will end on October 3
- On the market this afternoon, ADX is down 6.25 per cent and trading at 0.8 cents per share
ADX Energy (ADX) has improved its oil price hedging with BP for the Vienna basin field production.
The new agreement will use an average Brent crude oil price of US$71.71 (A$59.44) per barrel, which is a jump from the previous contract of US$44.34 (A$59.44) per barrel.
The new contract commenced on July 1 and will end on October 31.
ADX’s hedge position now covers around 200 barrels per day, which includes two hedge contracts.
The 60 per cent increase in averaged hedged oil price is expected to generate a substantial increase in gross revenue.
The level of crude oil production now hedged compares to the current field oil equivalent field production of 320 barrels per day.
Notably, crude oil trading has improved compared to the majority of 2020 which provides substantially increased revenues from the Gaiselberg and Zistersdorf fields.
ADX said the expected increased net revenues will allow the company to pursue further well work and continue to grow its oil and gas portfolio.
On the market this afternoon, ADX was down 6.25 per cent and trading at 0.8 cents per share at 3:33 pm AEST.