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ADX Energy (ASX:ADX) - Executive Chairman, Ian Tchacos
Executive Chairman, Ian Tchacos
Source: The Market Herald
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  • ADX Energy executes hedging transactions with BP for a zero collar contract with a price floor of US$73 per barrel (put option strike price) and a cap of US$82.60 per barrel (call option strike price)
  • The total volume of oil production covered by the contract is 11,210 barrels during the four-month period of hedging from January to April this year
  • Under the contract, the company will receive these barrels between the agreed prices based on the average Brent price for each month over the Hedge period
  • ADX says increased net revenues and oil production rates place it in a strong position to continue portfolio growth initiatives for oil and gas as well as compatible green energy production opportunities
  • Shares are trading flat today at 1 cent each

ADX Energy has announced oil price hedging for its Vienna basin fields.

The company has executed hedging transactions with BP for a zero collar contract with a price floor of US$73 per barrel (put option strike price) and a cap of US$82.60 per barrel (call option strike price).

The contracted volumes represent about 35 per cent of the production of the proven reserve between the start of this year and the end of March, then 60 per cent of the proven reserves for April 2022 from its Gaiselberg and Zisterdorf field in the Vienna Basin.

The total volume of oil production covered by the contract is 11,210 barrels during the four-month period of hedging from January to April this year. Under the contract, the company will receive for these barrels between the agreed prices based on the average Brent price for each month over the hedge period.

The company says favourable trading conditions for Brent Crude oil have continued early this year, with the Dated Brent Oil Price Forward Curve remaining about US$79 (A$109) per barrel during the first quarter of this year.

ADX said increased net revenues and oil production rates place it in a strong position to continue portfolio growth initiatives for oil and gas, as well as compatible green energy production opportunities.

Shares are trading flat today at 1 cent each at 10.44 am at AEDT.

ADX by the numbers
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