Secondary oil zone delivers for ADX

European oil producer ADX Energy has hit a further 11 metres of oil and gas reservoir in a deeper, secondary target within its Anshof-3 well in the Molasse Basin in Austria.

Interestingly, the existing independently estimated 6.6 million barrels of oil equivalent mean target did not factor in this deeper, secondary Cenomanian sandstone target.

ADX said the Anshof-3 well reached a total depth of 2499 metres with an eight and a half inch hole at bottom on the 6th of January.

Cenomanian aged reservoirs are of variable quality in the area however they represent an excellent producing interval in several nearby fields according to the company.

The new discovery is the third prospective hydrocarbon-bearing zone of interest in the Anshof-3 well. Its primary Eocene oil target yielded a nine-metre zone and in the shallower Miocent formation ADX reported a 20m gross interval and strong gas shows with potentially good reservoir quality.

ADX says the first two intervals exhibited oil and gas shows indicative of moveable hydrocarbons, however the company said it would now run wireline logs from a depth of 331m to end of hole to determine the potential of all three reservoirs and confirm whether oil and gas can flow to surface.

ADX said wireline logging operations had been delayed due to well bore instability that requires remedial hole conditioning including reaming and an increase in mud weight prior to running the logs. The log results are expected this week.

The Eocene oil reservoir and other geological intervals such as the Top Oligocene and Top Cretaceous formations have been encountered as predicted, further confirming the presence of a large structure as mapped prior to drilling on 3D seismic according to management.

ADX’s drilling report noted that its independent consultant, RISC, was not provided with an assessment of the deeper Cenomanian secondary objective for Anshof, which means the size of the larger prize could in fact be bigger than the original pre-drill estimate of 6.6 million barrels of oil equivalent mean.

This bodes well for the many other opportunities ADX said its 3D seismic and its new basin modelling has been throwing up.

Importantly, Anshof-3 is located only metres from existing oil and gas pipelines that ADX may be able to use to export its product to market.

Well watchers will have to wait until the wireline logs are run and any subsequent production testing figures are gathered however at this early stage, the market meerkats may well start to cast their eye towards Austria and the Anshof-3 well.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au