ADX locks in oil hedge with BP

Austria-focused oil and gas producer, ADX Energy has protected itself against oil market jitters by locking in a hedged pricing position with supermajor BP for production from its Gaiselberg and Zistersdorf fields in the Vienna basin. The deal comes as the ASX-listed ADX waits for test results from its Anshof-3 discovery that it hopes will push even more volume through its newly struck hedge facility. The company said it had locked in a zero-collar hedging contract with BP with a pricing floor at US$73 per barrel, or “bbl” and a cap at US$82.60 per barrel. According to the company, oil price markets for Brent crude that remained above US$79/bbl enabled it to secure what it describes as an attractive price for its hedging contract.