PriceSensitive

ADX Energy moves to become 3rd oil and gas producer in Austria

Energy
ASX:ADX      MCAP $43.88M
10 November 2019 22:49 (AEST)

ADX Energy has made significant progress with securing exploration data and access arrangements in Austria, as well as with its Vienna Basin acquisition.

Last month, the company set its sights on the Zistersdorf and Gaiselberg oil and gas fields in the onshore Vienna Basin. ADX considers these gas fields to be prospective and financially lucrative in the long term.

The Ministry for Digitisation and Economic Affairs has granted approval of the oil and gas fields under the foreign trade act, which is a key approval for the Mining Authority to transfer the production licence of these assets.

“The Board of ADX is very pleased that we are nearing the completion of the RAG Production Acquisition due to the efforts of our Vienna based CEO Paul Fink with the expert assistance of RAG,” Executive Chairman Ian Tchacos said.

Additionally, the approvals for the transfer of vineyards and agricultural land associated with Zistersdorf and Gaiselberg will be finalised in the next few weeks.

ADX expects all approvals for the transfer of these assets will be completed by the end of the month.

The company has also submitted exploration licence applications for an exploration area in Upper Austria. The application acreage surrounds RAG’s oil and gas fields where ADX has access arrangements, production and transportation infrastructure.

ADX expects to secure the Upper Austria acreage position in early 2020.

“With a very valuable, state of the art exploration data set and infrastructure access arrangements in place, ADX expects to be able to commence an immediate program of appraisal and low risk exploration that can readily deliver cash flow,” Ian added.

These recent events are aligning with the company’s strategic goal of becoming the third producer and only one of two explorers in Austria.

ADX Energy shares remain flat today and trading for 0.9 cents each at market close.

Related News