Australian ADX Energy signs deal on oil, gas and geothermal permits in Austria
Molasse Basin and company concessions (Source: ADX Energy release)
Alexander Richter
11 Jan 2021
Oil & gas exploration and production company ADX Energy has signed concession agreements for oil exploration that could also see geothermal potential.
In a release shared today, Australian Stock Exchange listed, European focussed oil and gas production and exploration company updates on concession agreements in Austria.
ADX Energy Ltd (ASX Code: ADX), has executed concession agreements with the Federal Ministry responsible for Mining (“BMLRT”) on behalf of the Republic of Austria has ratified the exploration, production and gas storage concession agreements (“AGS”) negotiated earlier in the year with the responsible BMLRT for Upper Austria (refer ASX announcemt.
The execution of the concession agreements for the Upper Austria AGS is a significant milestone for ADX which is now the sole exploration operator in the Austrian part of the prolific Molasse oil and gas basin. The new drill ready and potentially substantial growth portfolio in Upper Austria complements the stable, long term, cash flow from ADX Lower Austrian oil and gas fields which are located in the middle of OMV’s (the National Oil Company of Austria) principal area of operations. ADX is now well positioned for significant short to mid-term growth in Austria, a country where over a 1 billion barrels of oil and 2.7 TCF of gas has been produced, with a stable legal and economic framework as well as attractive fiscal terms. The unique “ADX master of the basin” position in Upper Austria has been enabled by exclusive access to high quality 3D seismic, well data and a highly experienced local exploration and production operations team who has had an outstanding track record for cost efficient rapid project.
The concessions signed also include geothermal opportunities in the western part of the Molasse basin. The area has proven geothermal potential that is already being exploited in a growing number of projects especially around Munich across the border in Germany. The Molasse geothermal potential is not yet exploited to its potential in Austria. ADX is fortunate to have a number or prospects with both hydrocarbon and geothermal potential in already proven high productivity reservoirs.
With the signing of the Upper Austria AGS now achieved, ADX will commence a systematic farmout process by the end of January 2021. The process has already started with a number of interested companies approaching ADX ahead of the formal farmout process. ADX is confident of being be able to complete a successful farmout process because it can offer interested investors or companies competitive advantages compared to other opportunities available on the market.
Source: Company release
