ADX Energy secures grant of Italian gas permit in the Sicily Channel
Permit d 363C.R-.AX has prospective gas resource of 369Bcf of gas
Potential for reversion of 2018 legislation, which could lead to grant of oil rights which includes an oil resource of 34.1 MMbbls at the Nilde oil redevelopment project
Special Report: ADX Energy has been granted a gas exploration permit offshore Italy hosting five high graded prospects with best technical prospective resources of 369Bcf.
The permit sits in water depths of 90-100m about 60km southwest of Sicily and has proven oil prospectivity.
It includes the Nilde oil field that produced 20.5 million barrels of oil in the 1980s, the additional Norma-1 and Naila-1 oil discovery wells, as well as five oil exploration leads.
Of immediate interest at this stage to ADX Energy (ASX:ADX) is the permit’s gas prospectivity, with the company noting that the five high graded prospects are considered to be relatively low risk as they are simple four-way dip anticline closures featuring a seismic amplitude response commonly known as direct hydrocarbon indicators.
The potential to uncover gas is encouraging given the strong demand for the commodity in the European Union but additional oil potential may be soon in the mix.
The d 363 C.R-.AX permit. Pic: ADX Energy
Gas rights in, oil rights next?
The grant of the gas rights for d 363C.R-.AX follows the Italian ministry completing a technical, financial, and organisational capacity verification procedure.
There is also potential for a reversion to the 2018 legislative position which would enable the oil potential to be exploited alongside any gas that might be found.
ADX’s permit currently has a contingent resource – discovered hydrocarbons that are not considered mature enough for commercial development – ranging from 19.2 million barrels (MMbbl) of oil to 65.6MMbbl and a prospective oil resource of 40-201MMbbl.
“The grant of the gas rights within the d 363 C.R- .AX permit is a highly positive development for ADX,” executive chairman Ian Tchacos said.
“The potential reversion of oil rights presents a valuable opportunity to redevelop the proven Nilde oil field together with a number of other highly prospective oil discoveries which can be developed with now commonplace subsea technology.
“The recognition of the importance of hydrocarbons to maintain energy security is a recurring theme in a number of jurisdictions.
“It is a credit to our team that the granting of the gas rights has been made possible as a result of ADX financial, technical and organisational capability.”
This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions
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