ADX Energy Ltd (ASX:ADX), an Australian-based oil and gas exploration and production company with assets in Austria, Italy, and Romania, has reported a robust September quarter, marked by a significant increase in net production rates. The company announced an average net production rate of 242 barrels of oil equivalent per day (BOEPD), a 23% rise from the previous quarter. Sales and other revenue remained stable at A$3.13 million, with unrestricted cash balances growing 5% to A$2.3 million. This performance occurred despite a 7% decrease in average Brent oil prices to US$97.00 per barrel, partially offset by a 10% increase in average gas prices.
Operational advancements in Austria were a key driver, with Vienna Basin production enhancing by 35% through behind-pipe perforations. The HOCH-1 shallow gas discovery well showed promising results, with Phase 1 commingled flow rates averaging 3.15 million cubic feet per day (548 boepd). ADX secured Empyrean Energy plc to earn a 10% economic interest in the GOLD Cluster Area by funding 20% of the GOLD-1 well costs, with construction anticipated by year-end. Preparations also advanced for the PERG-1 near-field oil prospect, with land secured and a farmout process underway.
In the Sicily Channel, exploration efforts progressed as RISC Advisory Pty Ltd independently confirmed the gas play’s validity, supporting ADX’s prospective resource estimates of 619 BCF P(mean). The company submitted three exploration permit applications to expand its gas play position. Corporately, ADX completed a A$3.58 million placement in July, with funds allocated to HOCH-1 gas testing, shallow gas drilling, production optimisation, and Sicily Channel exploration. Executive Chairman Mr. Ian Tchacos noted the Board’s focus on increasing production, low-risk gas development, and high-impact exploration, anticipating further updates in the December quarter.
