- Junior oil and gas play ADX Energy (ADX) claims an independent review of its Welchau prospect in Austria confirms its “large resource potential”
- International energy consultants Gaffney Cline & Associates conducted the review, which was commissioned by ADX partner MCF Energy
- ADX confirms the results of the review are in line with its prospective resource estimates, and the Welchau prospect is operationally drill-ready
- There were delays in finalising the drilling program due to the need to engage an in-house permitting team, but the company aims to begin drilling in September
- ADX shares are up 8.3 per cent and trading at 0.7 cents at 1:23 pm AEST
Junior oil and gas play ADX Energy (ADX) has claimed an independent review of its Welchau prospect in Austria confirmed the prospect’s “large resource potential”.
The review, carried out by international energy consultants Gaffney Cline & Associates and commissioned by ADX partner MCF Energy, confirmed ADX’s structural model as “reasonable” and “highly likely”.
Gaffney Cline’s review estimated a total minimum gas equivalent of 365 billion cubic feet and a maximum of 1128 billion cubic feet. This represents a 72 per cent increase in minimum total gas equivalent compared to ADX’s gross prospective resource estimates reported in June 2022 but a 31 per cent decrease on the estimated maximum total.
Despite the differences, ADX said the results of the review confirmed its geotechnical interpretation and were relatively in line with its prospective resource estimates.
“The board of ADX is very encouraged by the independent assessment of Welchau’s resource potential from a highly credible and respected international energy group such as GaffneyCline,” ADX Executive Chairman Ian Tchacos said.
The Welchau prospect is operationally drill ready in terms of geological and engineering work, as well as the procurement of long lead materials and services such as casing, well heads and drilling services.
However, Mr Tchacos said there had been some delays in finalising the Welchau-1 drilling program due to the need to engage an in-house permitting team.
The company aims to begin drilling in September.
ADX shares were up 8.3 per cent and trading at 0.7 cents at 1:23 pm AEST.