ADX Energy Triples Shallow Gas Targets in Austrian Licence Revamp
ADX Energy has strategically optimised its Upper Austria licences, significantly expanding its shallow gas prospects and securing high-impact oil and gas targets, positioning itself for rapid production growth amid rising European gas prices.
- Licence areas in Upper Austria optimised with no net increase in acreage or costs
- Shallow gas targets tripled, offering low-risk, drill-ready opportunities
- Welchau-1 play extended with new prospects including Molln-1 and Rossberg
- High-impact oil and gas prospects enhanced by 3D seismic and recent well data
- Near-field Anshof oil prospects being prepared for drilling and production tie-back
Strategic Licence Area Variation
ADX Energy Ltd (ASX:ADX) has announced a significant optimisation of its exploration and production licences in Upper Austria, following an agreement with the Austrian Ministry for Finance. The variation maintains the total licensed area but reshapes it to capture multiple new growth opportunities without incurring additional costs. This strategic move is designed to enhance ADX's portfolio with a diversified set of prospects across different play types within the basin.
Tripling Shallow Gas Prospects
Central to the licence variation is the dramatic increase in shallow gas targets, which have more than tripled in number. These targets are considered low risk and drill-ready, supported by strong 3D seismic signatures and proximity to existing pipeline infrastructure. ADX aims to leverage these prospects for rapid production ramp-up and cash flow generation, capitalising on the current high European gas prices that have not been seen in two years.
Extending the Welchau Play
The revised acreage also expands the Welchau play, incorporating potential extensions of the Welchau-1 discovery and new coverage of the Molln-1 gas appraisal opportunity, alongside the Rossberg prospect. The Molln-1 well, drilled in 1989, previously tested up to 4.0 million cubic feet per day of condensate-rich gas from a carbonate reservoir analogous to Welchau-1. Ongoing testing and interpretation work at Welchau-1, despite current permit-related suspensions, continue to underpin the large resource potential of this carbonate thrust belt play.
High-Impact Oil and Gas Prospects
Beyond gas, ADX is maturing high-impact oil and gas prospects within the ADX-AT-I licence area. These are benefiting from advanced 3D seismic reprocessing and new stratigraphic insights gained from the recent Lichtenberg-1 well. This evolving understanding is expected to enhance prospectivity and support future drilling campaigns.
Near-Field Exploration at Anshof
Complementing the broader exploration portfolio, ADX is preparing near-field oil exploration prospects around the Anshof production facility. These prospects are being matured for drilling with the objective of rapid tie-back and production addition, further strengthening the company’s short-term production profile.
Looking Ahead
ADX plans to pursue an active drilling program in 2025, initially targeting the expanded shallow gas portfolio and step-out wells near Anshof. The company intends to utilise existing funding and potential farmouts to secure rig commitments. Shareholders can expect timely updates detailing resource potential and development plans as projects mature, positioning ADX to build production and cash flow in the near term while advancing transformational resource opportunities for the longer term.
Bottom Line?
ADX’s acreage optimisation sets the stage for accelerated growth, but drilling outcomes and permit resolutions will be critical to unlocking value.
Questions in the middle?
- When will the environmental permit issues delaying Welchau-1 testing be resolved?
- What are the timelines and capital requirements for drilling the expanded shallow gas targets?
- How might evolving European gas prices impact the commercial viability of ADX’s new prospects?
