Next month, ADX Energy (ADX) will start production from its Anshof Oil discovery in Austria.
Executive Chairman Ian Tchacos attended the RIU Good Oil and Gas Energy Conference in Perth this week to promote the company’s work in the Vienna Basin oil and gas fields.
“We’re very excited, we made a discovery in December of last year, we tested a well it produced at around 130 barrels a day and mid-October we’re going to start commercial production,” Mr Tchacos said.
“That will take our oil rate up from around 280 barrels right up to 350-360 barrels a day so that’s going to be a very important addition to our cash flow.
“Where we are in Austria we’ve got very good infrastructure, there’s a local refinery we’re selling into – we’re able to sell our oil and gas very effectively. But we’re also looking to increase production very substantially.”
Mr Tchacos said the company was well placed to serve the growing energy needs of Europe.
“Gas in Europe right now is super, super expensive. I mean Europe’s got drunk on Russian gas for the last 20 years and they’ve got a massive hangover,” he said.
“We’ve got a very big gas prospect to drill it’s about 800 billion cubic feet equivalent (bcfe) of gas and just to get that in context one bcfe of gas is worth about USD$100 million (A$148.27 million) at current European gas prices so it’s a very exciting gas prospect to drill and we should be drilling that in about the next nine months.”
ADX Energy shares are trading around point-eight of a cent.