ENERGY FOR THE
Christian Lange, CEO of ADZ Energy, tells us about his storied career in the international energy industry and how this informs his leadership of the companyās long-term, unmatched portfolio of oil and gas assets across Australia
Writer: Lucy Pilgrim | Project Manager: Andrew Lewis
As the international oil and gas market continues to adapt to the evolving demands of the energy transition, a certain tenacity, flexibility, and open-mindedness is required to weather the storm.
Christian Lange, CEO of Australian exploration and production (E&P) company, ADZ Energy (ADZ), is no stranger to these special qualities.
After completing his tertiary education at the age of 18 and navigating the deteriorating health of his father, Lange was unsure whether to study or take a gap year. Going for the latter, he took a job with West Australian Petroleum Pty Ltd (WAPET) on Barrow Island off the coast of Western Australia (WA).
āI was only meant to do a gap year
before I settled down at university, as I didnāt really know what I wanted to do apart from play rugby,ā opens Lange. Subsequently, he stayed for two years before being recruited by Schlumberger (SLB). However, since Lange did not have degreelevel qualifications, the company funded his studies to become an SLB engineer through an internal
THE FUTURE
programme, which took around seven years to complete.
āAlthough the first few years were pretty intense, I was fortunate enough to travel with SLB and attend training centres in the UK and US, which was a great experience for a 21-year-old,ā he gleefully recalls.
During the early stages of his career with SLB, Lange went on to live and work in a variety of countries including New Zealand, Dubai, Yemen, the US, and Venezuela, where he worked as a District Manager.
In his first management role, Lange learnt valuable insights into how he wished to lead a team and work proactively in a āfixer-upperā
environment, aiding other businesses that were experiencing downturns.
This belief in regenerating and breathing new life into companies has led Langeās passion for the oil and gas industry throughout the rest of his career.
CULTIVATING A SUCCESSFUL BUSINESS
After working in Dubai and New York, as well as completing an MBA scholarship at Curtin Graduate School of Business in Perth, Lange decided to take a step back from SLB in order to continue following his passions.
āThe company was changing as it grew, and I think there comes a
time after 18 years where you decide whether youāre in it for life or you want to do something else,ā he imparts.
Thus, Lange returned to Australia to run a publicly-listed company that required his support and expertise.
āI knew at the time that I liked situations that werenāt necessarily the status quo. I relish the challenge of fixing something and then growing it, which is what I really enjoyed doing in Venezuela.ā
This enthusiasm for revitalising businesses continued when Lange was approached 18 months later by a subsea company solely focused on R&D.
Over the course of five years, he helped to acquire all the necessary components to build out the inspection, repair, and maintainence (IRM) business, complete 11 acquisitions, and successfully grow the company across the major offshore regions, including Asia, Middle East, North Sea, and the US.
This then led Lange to establish his own energy services company, which he ran for eight years. However, after it was unfortunately impacted by the falling market price of oil, which sent shockwaves across the entire industry in the mid-2010s, he was subsequently approached by Armour Energy Group (Armour).
āMy previous private engineering firm had done quite a bit of work with Armour, so we understood the asset and knew it was in a bit of financial trouble. I saw it as an opportunity to do what Iām good at, which was to repair things and build a really good team,ā Lange shares.
āI was aware and prepared for the monumental challenge of rebuilding and rejuvenating the company,
particularly from a governance perspective.ā
PROSPEROUS PRODUCTION ACTIVITIES
Armour was acquired in January 2024 by ADZ, which marked a turning point in the companyās journey.
Indeed, since the acquisition at the beginning of the year, ADZ has invested tens of millions of dollars in plant maintenance and production
uplift and has set itself up to achieve its primary objective of becoming one of Australiaās leading E&P companies with licences in Queensland (QLD), South Australia (SA), Victoria (VIC), and the Northern Territory (NT), totalling approximately 20 million acres.
āFrom a size perspective, we are one of the largest tenement holders in Australia, but in terms of production, weāre actually quite a small company,ā Lange reveals.
āTO ME, ITāS ABOUT THE QUALITY OF THE PEOPLE YOU PUT AROUND YOU AND YOUR ABILITY TO LISTEN AND WORK WITH THEMā
ā CHRISTIAN LANGE, CEO, ADZ ENERGY
The majority of ADZās production activities take place in a mature gas field in the Surat Basin, where the company produces gas for QLDās domestic market from the on-site Kincora plant, trading via the Wallumbilla gas supply hub.
ADZ sells the majority of its firm output to Shell Energy in Australia whilst also selling liquefied petroleum gas (LPG) and concentrate to other clients.
The companyās proven and probable (2P) reserves across its QLD production licenses currently total 130 billion cubic feet across 10+ license areas. ADZ has a long-term goal to develop these reserves over the next five to 10 years.
In fact, since ADZ took ownership, the company has increased its gas production by approximately 25 percent and is aiming to more than double production over the course of next year.
āWe have a pretty healthy development plan for QLD, as well as the companyās other exploration areas,ā Lange adds.
These include developing the Newstead Gas Storage Facility and upgrading the Kincora plant to a capacity of 30 terajoules of gas per day by the end of 2025.
EXPLORATION EXPERTS
In order to achieve its ambitious goal of doubling production next year, ADZ has a number of exploration activities in the pipeline.
In the NT, for instance, ADZ is conducting extended well testing, as well as 2D and 3D seismic activity, to develop the Glyde gas discovery and identify future prospects.
TRUSTED SUPPLIERS
ADZ relies on an extensive network of suppliers who help maintain its plants and energy infrastructure. These include tradespeople, electricians, instrument technicians, mechanics, and a range of equipment suppliers.
Cooper Machinery Services (Cooper), in particular, is an integral partner who supports the business in delivering a safe and sustainable energy future for Australia. Cooperās experienced team provides both rotating and fixed equipment support to ADZās operating assets across the Surat Basin in QLD.
Additionally, the company leverages the expertise of a specialist well operations team to provide a variety of services, including drilling, wirelining, fracture simulation, call tubing, and much more.
The companyās future plans in the NT also include obtaining the environmental and native heritage approvals for seismic acquisition and exploration, alongside additional drilling and seismic activities across the McArthur Basin.
ADZ also has a heads of terms agreement with Lucapa Diamond Company (Lucapa), who possesses a nearby diamond mine approximately 12 kilometres away. The company is aiming to supply gas to the mine in the next couple of years, as Lucapa is looking for an alternative power source for its operations.
In VIC, meanwhile, ADZ is aiming to drill the Enterprise North-1 exploration well, having recently acquired Lakes Blue Energyās 49 percent interest in PEP169. As a result, ADZ now has 100 percent in this highly prospective tenement.
āWe have very high hopes as we believe there is a world-class reservoir underneath the rock, and weāre aiming to tap into that.ā
These sorts of exploration activities are vital for VICās domestic gas market, where federal and government legislation is pivoting towards renewable energy as part of the stateās Future Gas Strategy.
Onshore exploration activity has therefore been limited over the previous decade, meaning there is less investment in Australiaās gas supply and significant shortages despite a steady growth in demand.
As such, ADZ is aiming to fill this supply chain gap in the next two to three years with greater exploration and drilling of the Enterprise North-1 well, scheduled for Q1-2 2025.
In addition, the company is working to de-risk two million acres of licensed land across the Cooper Basin in SA, which involves extended geological and geophysical studies to try and understand how best to explore the tenement over the next few years.
āWith a robust exploration portfolio and book of activity, weāll hopefully
C o oper e xpands capabilities in Australia with new workshop
Cooper Machinery Services (Cooper) has taken a signiļ¬cant step forward in its operations with the opening of a new workshop located at 803 Greenwattle Street, Toowoomba, QLD, Australia. This new facility is strategically positioned to meet the growing demand for engine and compressor overhauls, as well as the refurbishment of parts. With this expansion, Cooper is better equipped to serve customers across various industries, ensuring that they receive the high-quality service and support that Cooper is known for.
The new workshop is not just about increasing capacity; it represents a commitment to enhancing the overall customer experience. By working closely with customers in Australia, we aim to reduce lead times and improve the eļ¬ciency of operations.
The new Toowoomba workshop oļ¬ers the following machine shop capabilities:
ā¢ Cylinder head overhaul
ā¢ Water pump overhaul
ā¢ Turbocharger overhaul
ā¢ Engine overhaul
ā¢ Reciprocating & screw compressor overhaul
ā¢ Compressor piston rod inspection & repair
ā¢ Compressor piston to rod assembly
ā¢ AJAX reed plate overhaul
ā¢ AJAX VVCP overhaul
ā¢ AJAX power cylinder inspection & refurbishmen
ā¢ Starter motor overhaul
ā¢ Teg pump overhaul
identify new resources to develop over the next 20 years, so weāre taking a very long-term view,ā Lange discloses.
DELIVERING ON ITS PROMISES
Environmental, social, and governance (ESG) practices are at the core of ADZās values and operations.
Indeed, most of the companyās tenements in Australia are on farmland, particularly across large cattle and crop farms across QLD. In order to work on these farms, ADZ must have access agreements with the landholders, whom the company works especially closely with to ensure that it is a good corporate citizen.
āThe way we look at it is, what do we leave behind when weāre gone? What is our legacy? The landholders will own that land for generations, whereas the reality is we may only be there for a generation or two,ā impassions Lange.
āCOMMUNITY IS OUR SOCIAL LICENSE TO OPERATE AS A RESPONSIBLE CITIZEN. PART OF THIS IS ENSURING THAT WE EDUCATE, LISTEN, INFORM, AND WORK TOGETHER BECAUSE WEāRE ULTIMATELY SHARING THE LAND AND THE RESOURCEā
ā CHRISTIAN LANGE, CEO, ADZ ENERGY
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With this in mind, ADZ views its operations through a generational lens and recognises the long-term impact it can have in a short period.
As such, one of the companyās core values is community, which encompasses landholders and Indigenous populations, particularly in the NT and the Otway Basin.
āWe need to respect the land and work together to ensure nothing we do goes against the way they have managed it for tens of thousands of years,ā Lange highlights.
āCommunity is our social license to operate as a responsible citizen. Part of this is ensuring that we educate, inform, and work together because weāre ultimately sharing the land and the resource.ā
Along with community, the other core values that ADZ stands by are accountability, integrity, and resilience, whilst environmental
stewardship is also taken incredibly seriously and traces back to the idea of leaving a lasting footprint.
āItās not about talk ā itās about action and delivering on our promises.ā
FORGING A BRIGHT FUTURE
With its community efforts and expansion objectives front and centre, ADZ has a strong belief in the future of the Australian oil and gas industry.
The company has a long-term strategy that not only solidifies its position but also meets the evolving needs of the energy sector across the country.
āWe often talk about being generational, as our management team and investors are not in this for a quick turnaround. Weāre here to build a business and scale over time,ā Lange affirms.
Working towards this aim, ADZ
is looking at different opportunities across the oil and gas landscape, including joint venture projects to more than double its production next year and expand its QLD assets.
āThere are no restrictions on what we can do in the energy space,ā he closes.
info@adzenergy.com.au
www.adzenergy.com.au