https://thewest.com.au/business/public-companies/adx-onto-commerc...

https://thewest.com.au/business/public-companies/adx-onto-commercial-oil-production-with-anshof-3-well-c-8645817

ADX onto commercial oil production with Anshof-3 wellHeadshot of Matt BirneyMatt BirneySPONSOREDMon, 24 October 2022 9:43AMMatt BirneyOil tanker at the Anshof-3 well location.Oil tanker at the Anshof-3 well location. Credit: FileEuropean focussed producer ADX Energy has commenced commercial production of light crude oil at its Anshof-3 discovery well in Austria just two years after securing the necessary exploration licence to initiate the work.The company says the well is pumping out a controlled output of 100 barrels per day from the ground’s oil-rich Eocene reservoirs that were first discovered in January.ADX says the well’s production has been restricted to 100 barrels of oil per day due to limited onsite storage and transportation constraints.Once out of the ground the company plans on mobilising the oil via truck to a nearby terminal for final processing before shifting gears and transporting the material by rail to a refinery near Vienna where it will be sold.ADX has described Anshof’s oil as a high-quality “sweet crude”, meaning the liquid boasts a low sulphur concentration that is generally preferred by oil refineries.Sweet crudes are commonly processed to deliver high yields and are typically used to produce high-value end products such as diesel fuel, gasoline, heating oil and jet fuel.Oil from Anshof-3 is being produced as part of a long-term testing program aimed at delivering 37,000 barrels of oil before kicking off a more extensive production licence over its larger discovery area.Management believes mapping indicates the larger Anshof oil field could extend over an area of approximately 25 square kilometres and is also planning to spud two additional production wells and establish a permanent production facility in the area.Modelling from the company suggests the project’s reservoirs will thicken towards the flanks of the current drilling area resulting in significantly higher production rates, these zones are also set to be testing with further holes.Anshof represents an important new project and source of additional revenue for ADX with the potential of becoming material asset in terms of both reserves and production rate.ADX Energy Executive Chairman Ian TchacosThe company is also active on the new energy front, with work progressing on a green hydrogen pilot project in the Vienna Basin in addition to running the rule over a nearby solar operation.The company recently tabled a solid set of financials with figures from the June quarterly highlighting a $900,000 increase in revenue and a cash balance to $2.56 million.The increase in bottom line came despite a $771,000 outlay to pay down its debt and a $227,000 bond payment for its upper Austrian operating licence.The price of crude oil is currently trading at roughly US$85 per barrel, sliding from an October high of about US$91 as traders grow increasingly worried the world is heading towards a recession.However, the drop is price has been countered by the rising US dollar which means buyers from Europe are seeing the relief of lower oil prices being gobbled up by the vagaries of the international currency markets.It’s little wonder then that Europe is keen to develop domestic supply options.