ADX Targets 33+ BCF Gas and 1.3 Million Barrels Oil in New Drilling Program
ADX Energy Ltd is gearing up to restart flow testing at Welchau-1 and drill multiple shallow gas and oil wells in Upper Austria starting January 2026, aiming for a significant boost in production from low-risk prospects.
- Resumption of Welchau-1 flow testing in early 2026
- Drilling of three shallow gas wells and one nearfield oil appraisal well
- Secured environmental permits and land access for all sites
- Program funded through cash reserves and expected farmout deal
- Prospective resources indicate substantial gas and oil volumes
Restarting Flow Testing at Welchau-1
ADX Energy Ltd (ASX – ADX) has announced plans to resume flow testing at its Welchau-1 well in Upper Austria starting January 2026. This well, which targets the shallow Reifling formation, will undergo fluid sampling and pressure measurement to assess its productivity potential. The company intends to stimulate the reservoir with acid treatment to enhance flow rates, addressing formation damage and unlocking further capacity.
Expanding Production with New Drilling
Alongside Welchau-1 testing, ADX will drill three shallow gas wells, HOCH-1, GOLD-1, and SCHOE-1, targeting biogenic methane-rich reservoirs that are considered low risk and low cost. These prospects are located within the ADX-AT-I and ADX-AT-II licences, close to existing infrastructure, enabling rapid commercialisation. Additionally, an oil appraisal well, SGB-1, near the Anshof field is scheduled for Q3 2026, aiming to confirm and expand oil production in a proven area.
Secured Permits and Funding Strategy
ADX has secured all necessary environmental permits and land access for the drilling program, with contracting for drilling services well underway. The company plans to fund the campaign through a combination of existing cash reserves and a farmout transaction expected to conclude by the end of 2025. This dual funding approach aims to mitigate financial risk while advancing exploration and appraisal activities.
Resource Potential and Market Implications
Prospective resource estimates for the targeted prospects are substantial, with mean gas volumes in the tens of billions of cubic feet and oil volumes in the low millions of barrels. The shallow gas prospects are particularly attractive due to their proximity to infrastructure and the maturity of the play. ADX’s Executive Chairman Ian Tchacos highlighted the exceptional opportunity for organic production growth through this multi-well program, which could significantly enhance the company’s footprint in the Vienna Basin region.
Looking Ahead
As ADX prepares to execute this ambitious drilling and testing program, the market will be watching closely for early flow test results and drilling outcomes. Success here could validate the company’s resource estimates and underpin a new phase of production growth. However, as with all exploration activities, outcomes remain subject to geological and operational risks.
Bottom Line?
ADX’s Upper Austria program could be a pivotal catalyst, but drilling results and farmout completion will be key to unlocking value.
Questions in the middle?
- Will the farmout transaction close on schedule to fully fund the drilling program?
- How will flow testing results at Welchau-1 influence the pace of subsequent drilling?
- What are the contingency plans if initial wells underperform relative to resource estimates?
