ADX Energy Ltd (ASX:ADX) has announced the identification of a dual prize at its Welchau appraisal project, focusing on light oil potential updip of the Welchau 1 well and gas condensate resources at a relatively shallow depth below it. ADX Energy is an Australian energy company focused on European gas and oil production and exploration. The company is actively pursuing projects in Austria and Italy.
Technical updates incorporate newly assessed oil resources updip of the Welchau 1 well and gas resources updip of the Molln 1 gas condensate discovery in a shallower structural setting, making them more readily accessible by deepening the Welchau well. Pressure and structural data demonstrate pressure continuity and aquifer communication between Welchau 1 and the downdip Molln 1 discovery, indicative of an extensive, interconnected petroleum system. Continuous hydrocarbon shows and light oil recovered at Welchau 1 confirm the presence of a light oil system within the extensive Welchau anticline.
The crest of the shallow Welchau anticline is mapped approximately 500 metres updip and west of the Welchau 1 well location, interpreted as an updip light oil accumulation. Welchau 1 will be tested in the coming weeks to verify the presence of moveable oil within the top Reifling Formation. The well can be deepened to appraise the central duplex structure updip of the Molln 1 gas condensate discovery or sidetracked westwards to assess the updip light oil potential.
The total aggregated mean prospective oil and gas resource estimates for the Welchau anticline are 18 MMbbls (Pmean) for the updip light oil and 125 BCF (Pmean) updip of Molln 1. ADX Executive Chairman Ian Tchacos stated that the recent studies and field work substantiate the presence of a strategically significant light oil and gas discovery in the Welchau anticline.
