In Upper Austria, ADX Energy Limited (ASX: ADX, FSE: GHU) has significantly expanded its concession areas thanks to a new agreement with the Austrian authorities. The previous licenses have been more than doubled from 450 km² to 1,022 km². The company is not only securing a new world-class gas field, but also future-oriented revenue opportunities, because the new licenses cover the production of oil and gas, gas storage and also the use of geothermal energy. With its new announcement, ADX Energy hits the nerve of our Time, because some of the most important problem areas that Europe's politics and energy industry have to deal with these days are being addressed. Europe lacks gas and those responsible are also concerned with the question of how Russian oil can be excluded from the import mix pressure and to reduce Europe's dependence on foreign countries. At the same time, the perspective of using the geothermal potential in Upper Austria in the not too distant future is more than just an interesting change to the future.AXD Energy wants to reduce dependencies and benefit from the high oil and gas pricesHow tense the situation is at the moment can be seen very clearly from the gas price. This is currently around four times as high in Europe as in the USA. The reason for this is not only the strong European dependence on gas supplies from Russia, but above all the question of transport. Oil is transported very inexpensively over long distances in tankers. In the case of gas, the pipeline has so far been the cheapest means of transport. However, this can be laid once and cannot be changed afterwards, and therefore requires constant deliveries from the same source to the same customers. In the case of Russia, however, this is no longer desired for understandable reasons since the start of the attack on Ukraine. The European countries are therefore faced with the challenge of having to develop alternatives in the short term and a new, secure gas supply in the medium term. In the long term, however, it is desirable to replace the bridging technology gas with regenerative energy sources. AXD Energy is rated by the Austrian authorities as a reliable partner It is precisely this objective that is evident in the award of the new licenses in Upper Austria by the authorities to ADX Energy. Compared to the European oil and gas companies, ADX Energy is a small light. But a reliable light that can grab hold of quickly and leverage existing potential, as the recent successes at the Anshof deposit have impressively shown. It therefore makes a lot of sense for the Austrian government to award the new licenses to ADX Energy. The company thus gains a revolutionary potential of new opportunities. Arguably the most important is that it appears possible to make a gas discovery at the new Welchau project. The project is located on the edge of the Austrian Alps and is similar to the giant anticline structures discovered in Kurdistan. The deposit lies at a depth of only around 2,000 meters and is already valued at 750 BCF. Converted to oil, this corresponds to the equivalent of 125 MMBOE. In addition, the gas is technically very easy to develop in the ground and a connection to the existing gas pipeline network can also be easily established.Other oil, gas and geothermal deposits with short- and long-term prospectsA property is to be developed in the Gmunden area that contains multiple forms of energy. Here, too, there is a gas deposit relatively close to the surface and therefore quite easy to develop and monetize. In the deeper layers, however, the experts see the possibility of developing renewable geothermal energy sources with a potential of 15 to 20 MW due to the analogy with other finds in the region. Finally, the ZAM project represents a continuation of the large OHM project It is currently independently valued at 20.4 MMBOE. Here, too, high-quality natural gas is suspected in the ground and a technical resource of 15 MMBOE is expected. Last but not least, the license granted for the Piberbach project represents an interesting rejuvenation of the existing oil production. It contains adjacent satellite projects on which a manageable risk and with good prospects of success, further oil discoveries appear possible. Investors should be very satisfied with the new news and the price also reacted well, because in the night from Sunday to Monday the price of the ADX Energy share rose again to 0.008 AUD which corresponded to an increase of 14.29 percent compared to Friday's course.
ADX Price at posting:
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