ADX Energy (ASX:ADX) hedges oil price for Vienna basin field production

• ADX Energy (ADX) has hedged some of its oil production from its Vienna basin field to take advantage of the high Brent crude oil prices
• The company secured a zero-cost collar contract with BP, which will see a pricing floor of US$80 a barrel and a cap of US$135.25 a barrel
• This will cover 50 per cent of its forecast proven (1P) oil production over the next seven months, with a total volume of 24,600 barrels
• The agreement will ensure the company has enough revenue from hedged production to cover operational costs
• Shares were trading 12.5 per cent higher at 0.9 cents each at 11:12 am AEST

ADX Energy (ADX) has hedged some of its oil production from its Vienna basin field to take advantage of the high Brent crude oil prices.

The company secured a zero-cost collar contract with BP, which will see a pricing floor of US$80 a barrel and a cap of US$135.25 a barrel.

This will cover 50 per cent of its forecast proven (1P) oil production over the next seven months, with a total volume of 24,600 barrels.

ADX secured the agreement in order to take advantage of the current favourable trading conditions for Brent crude oil, which has been trading at record highs from the fallout of the Russia Ukraine war.

The agreement will ensure the company has enough revenue from hedged production to cover operational costs.

Meanwhile, 50 per cent of oil production and 100 per cent of gas production will remain unhedged.

Shares were trading 12.5 per cent higher at 0.9 cents each at 11:12 am AEST.