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ADX Energy to buy Austrian oil and gas project

Energy
ASX:ADX      MCAP $43.88M
13 October 2019 22:52 (AEST)

ADX Energy has its sights set on a long-life, oil and gas project in Austria and is looking to raise $5.5 million from shareholders to fund the purchase.

Shareholders will have the opportunity to buy into the company at one cent per share. It is expected the capital raise will attract institutional and sophisticated investors.

Once the purchase is complete, which is planned for late October to mid November, the company will operate the Zisterdorf and Gaiselberg oil and gas fields in the Vienna Basin.

According to the company, purchasing the Austrian-based project will complement its current operations in Romania.

The combination of the two projects will “provide multiple growth and value creation opportunities in low-cost, pro-development jurisdictions,” ADX’s Executive Chairman, Ian Tchacos, said.

Based on historical results, the company is confident the projects will remain prospective for oil and gas discoveries and deliver financial results.

Ian noted the projects have “excellent access to infrastructure and high energy pricing.”

At the Romania project, its forecast resource is 303 billions of cubic feet of gas and 47 million barrels of oil.

Following its return to trading after a voluntary suspension last week, ADX’s share price is remaining flat today, currently sitting at 1.2 cents per share.

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