Wien (pta/31.05.2022/12:35 UTC+2)
ADX Energy Ltd (ASX Code: ADX) is pleased to advise that it has executed hedging transactions with BP for a zero-cost collar contract with a pricing floor at USD 80.00 per barrel (put option strike price) and a cap at USD 130.25 per barrel (call option strike price). The contracted volumes represent approximately 50% of the 1P forecast production between 1 June 2022 and 31 December 2022 from its Gaiselberg and Zistersdorf fields in the Vienna basin.
The total volume of oil production covered by the zero-collar contract is 24,600 barrels during the 7-month period of hedging from June to December 2022 inclusive (Hedge Period). With the new zero cost collar contract, ADX will receive for these 24,600 barrels a Brent price of no less than USD 80.00 per barrel and up to USD 130.25 per barrel based on the average Brent price for each month over the Hedge Period.
Favourable trading conditions for Brent crude oil have enabled ADX to secure sufficent revenues from hedged production to ensure field operating and administrative costs will be covered with a smaller percentage of total field production. Approximately 50% of oil production and 100% of the gas production (which is forecast to represent 30% of field revenues in 2022) will remain unhedged.
Increasing field revenues as a result of higher oil and gas pricing combined with sustained oil production rates have placed ADX in a strong position to continue a program of portfolio expansion for oil and gas as well as compatible green energy production opportunities.
For further details please contact:
|Paul Fink||Ian Tchacos|
|Chief Executive Officer||Executive Chairman|
|+61 (08) 9381 4266||+61 (08) 9381 4266|
END OF THIS RELEASE - Authorised for lodgement by Ian Tchacos, Executive Chairman
ADX Energy Ltd.
|Contact Person:||DI Paul Fink|
|Phone:||+43 (0)50 724 5666|
|Stock Exchange(s):||Free Market in Berlin, Frankfurt, Hamburg, Munich, Stuttgart, Tradegate|
|Other Stock Exchanges:||Australian Securities Exchange (ASX), Sydney|