ADX Energy has executed the concession agreements with Austria’s Federal Ministry of Mining for its 450 square kilometres of fresh exploration ground in Austria’s prolific Molasse Basin. The company has ten drill-ready prospects with the potential to discover around 42 million barrels of oil equivalent, plus green energy opportunities such as geothermal and hydrogen storage.

Signing of the Upper Austria AGS followed a comprehensive federal approval process including the Finance Ministry which demonstrates Austria’s continued commitment to domestic energy sector investment. Austria’s energy policy is premised on a preference for oil and gas produced in country where strict greenhouse gas emissions and environmental standards can be guaranteed.

The signing of the Upper Austria AGS is the culmination of over 18 months of technical work, commercial discussions and relationship building with RAG Exploration & Production GmbH (RAG E&P) and the Austrian designated authorities resulting in the achievement of the following important milestones;

• The execution of a data trade agreement with RAG in July 2019 in conjunction with the acquisition of Gaiselberg and Zistersdorf asset acquisition providing access to highquality 3D seismic and well data in Upper Austria (“Data Set”) with a replacement value of EUR 90 million;
• Utilising the Data Set to high grade an area of 450 km² (“AGS area”) that includes 10 drill ready exploration prospects with a best technical prospective resource estimate of 42 million barrels of oil equivalent (MMBOE) (“Prospect Inventory”);
• Demonstration of financial and technical capability to Austrian regulators and negotiation of the concession agreement on favourable terms for the Upper Austria AGS; and
• Finalisation of an infrastructure access agreement with RAG E&P which enables access to nearby RAG E&P owned oil and gas infrastructure on attractive tariffs (“Infrastructure Access Agreement”).

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 execution and a recent (approx. 10 years) historical exploration success rate of 48% based on modern 3D seismic.

Geothermal Potential

In addition to the above-mentioned hydrocarbon opportunities, the western part of the Molasse basin 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.

KeyFacts Energy: ADX Energy Austria country profile