- ADX Energy has transformed its strategy and business model following the announced acquisition of oil and gas mogul, RAG Austria AG, on July 2 2019
- ADX will gain 100 per cent ownership of RAG Assets which include the Zistersdorf and Gaiselberg Fields, exploration data and portfolio in upper Austria
- ADX also has operations in Italy, Romania and Tunisia
- The RAG acquisition will make ADX Energy the first foreign publicly listed oil and gas company in the Austrian oil and gas sector
ADX Energy has transformed its strategy and business model following the announced acquisition of oil and gas mogul, RAG Austria AG, on July 2 2019.
Formerly, ADX’s strategic focus was on the dependence of funding arrangements and opportunistic farm-out agreements.
While its “guided by experience, inspired by opportunity” mission statement still stands, the company’s new business model is based on a sustainable growth platform with predictable cash flow, low-risk expansion opportunities and higher rewards.
By acquiring the Vienna-based company, ADX will gain 100 per cent ownership of RAG Assets which include the Zistersdorf and Gaiselberg Fields located onshore within the Vienna Basin. The acquisition also includes exclusive access to RAG’s exploration data and portfolio in upper Austria.
The acquisition of the Zistersdorf and Gaiselberg Fields is a transformational achievement for ADX as it positions the company as an onshore European producer, developer and explorer.
ADX Energy also holds assets within Tunisia, Italy and Romania – all of which have good infrastructure, strong energy markets, stable governments and attractive fiscal terms. Adding Austria to the mix provides even further growth and value creation opportunities.
ADX attaining the large exploration acreage, which is now covered with 3650 square kilometres of modern 3D seismic data, is a key part of its strategy of unlocking the remaining potential in upper Austria.
Once the RAG transaction closes, ADX intends to focus on an initial exploration phase on a mix of low-risk, step-out exploration projects infrastructure and medium-risk, large-sized prospects.
In the last two months, ADX has been working with RAG to secure the necessary government transfers for producing licences, transfers of land and exploration licence applications for Zistersdorf and Gaiselberg.
Simultaneously, ADX is continuing drilling activities at its Iecea Mica-1 well in Romania.
Today the company announced it is preparing the well for production testing following the evaluation of the Pannonian appraisal and new discovery zones.
New discoveries of the Pa III and Pa V reservoir section, which have both indicated positive hydrocarbon gas shows, has de-risked the follow-up IMIC-2 well.
ADX Executive Chairman Ian Tchacos stated the findings exceeded his expectations.
“The excellent results to date exceed our pre-drill resource expectations for the Iecea Mica-1 well. The 20 BCF Best Case Contingent Resource Estimate from the PA III, IV and V sands provides exceptional economic potential from the successful completion and tie-in of the well,” he said.
Concurrently, ADX reported its Tunisian activities are likely to be deferred or suspended to focus on the newly acquired Austrian assets and its Romania and Italy operations.
ADX’s strategic operations are positioning it as a unique breakthrough business in very desirable European jurisdictions which are traditionally dominated by national oil companies and well-funded private equity groups.
Once complete, the RAG acquisition will make ADX Energy the first foreign publicly listed oil and gas company in the Austrian oil and gas sector.