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ADX Energy (ASX:ADX) - Executive Chairman, Ian Tchacos - The Market Herald
Executive Chairman, Ian Tchacos
Source: Hot Copper
  • ADX Energy (ADX) has provided a third update on well flow testing at the Iecea Mica-1 (IMIC-1) well in Romania
  • Recently, production equipment has been run into the well and been pierced to encourage flow from the Lower Pannonian gas reservoir
  • However, despite the evidence of inflow, gas flow to the surface has yet to be achieved, which suggests reservoir damage and mud filtrate has built up around the well
  • Fortunately, this damage can be reversed with acidisation, a process used to release oil and gas
  • Moreover, ADX's workover rig will be demobilised, as it's no longer needed for assessment work
  • ADX has dropped 12.5 per cent on the market and shares are currently trading for 0.7 cents each

ADX Energy (ADX) has provided a third update on well flow testing at the Iecea Mica-1 (IMIC-1) well in Romania

Production equipment

Recently, production equipment has been run into the well and been pierced to encourage flow from the Lower Pannonian (Pa IV) gas reservoir.

Despite the evidence of inflow, gas flow to the surface is yet to be achieved, which suggests reservoir damage and mud filtrate has built up around the well. This is a strong possibility, given that good reservoir porosity (a measure of empty spaces in a material) was encountered last year.

Therefore, ADX believes this reservoir damage may have been caused by the build-up of mud and other unabsorbent materials during drilling.

Fortunately, this damage can be reversed with acidisation, a process used to release oil and gas, which is a common practice in wells in this area.

Workover rig

Because it's no longer needed for assessment work, ADX's workover rig will be demobilised.

Once it has been removed, additional down-hole pressure sampling and tests will be completed using wireline equipment.

Further, results from a recent flow testing program will be made available to shareholders over the coming weeks.

ADX has dropped 12.5 per cent on the market and shares are trading for 0.7 cents each at 12:40 pm AEST.


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