ADX Energy Ltd (ASX:ADX) Reports Welchau-1 Production Update
Production Testing Overview
ADX Energy Ltd (ASX: ADX) provided an operational update regarding the Welchau-1 well, located in the ADX-AT-II licence in Upper Austria. The initial results from the flow testing of the upper Reifling formation were released on December 4, 2024. The well is significant for its potential contributions to ADX’s investment area.
Initial Flow Testing Results
The upper part of the Reifling formation was perforated, but the initial flow test did not yield enough flow to determine the reservoir fluid composition. Sampling mostly recovered workover fluids, with traces of unknown black solid particles possibly affecting well flow. These solid particles are currently under analysis at a specialist laboratory.
Future Testing Plans
The well has been shut in while the workover rig has been demobilised for ongoing operations at ADX’s Vienna Basin Fields. Well head pressure recording equipment will be installed to monitor inflow pressure. Should sufficient inflow be detected, ADX plans further sampling and swabbing of the well to reduce hydrostatic pressure, potentially leading to hydrocarbon recovery. The results of pressure monitoring and fluid analyses are expected in the new year, guiding further operations.
Investment Agreement Insights
ADX has entered into an Energy Investment Agreement with MCF Energy Ltd. This agreement funds 50% of the Welchau-1 well costs. MCF has fulfilled its financial obligations, earning a 25% economic interest in the Welchau Investment Area, while ADX retains a 75% interest. MCF must also contribute to ongoing well costs and exploration expenditures.
Expertise and Compliance
The technical details and reserves information in this release were reviewed by Paul Fink, ADX’s Technical Director, who brings 30 years of industry experience in oil and gas exploration and management.
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