ADX Energy Launches Upper Austrian Gas Drilling Campaign with HOCH-1 Spud
ADX Energy has officially commenced its ambitious shallow gas exploration program in Upper Austria, spudding the HOCH-1 well as the first of a three-well campaign. This strategic move aims to tap into potential reserves of up to 17.3 billion cubic feet of gas (Bcf), marking a significant step in the company's efforts to establish a robust production base in the region.
Drilling Progress and Technical Details
The HOCH-1 well was spudded on April 16 and has already been drilled to a depth of 96 meters, indicating a smooth transition from rig setup to active operations. The drilling program is designed for efficiency, with the initial section planned to reach approximately 430 meters before casing is cemented, followed by a final push to a target depth of 1430 meters. ADX Energy forecasts a rapid two-week timeline to reach total depth and assess the resource potential.
This well targets shallow gas within the Miocene Hall formation, a proven sandstone system known for reliable production. Nearby wells in similar horizons have achieved flow rates of up to 9 million standard cubic feet per day, equivalent to about 1,500 barrels of oil, highlighting the potential for quick-cycle output. The target has been refined using advanced techniques such as three-dimensional seismic and amplitude versus offset analysis, mapping a stratigraphic pinch-out trap supported by direct hydrocarbon indicators.
Resource Estimates and Future Prospects
Resource estimates for the HOCH structure indicate a mean of 8.0 billion cubic feet of gas, with a high-end potential of 17.3 Bcf. Seismic data suggests the reservoir may extend beyond the core target zone, opening opportunities for broader drainage and additional follow-up drilling. HOCH-1 serves as the spearhead for a wider campaign, with two more wells planned: the GOLD prospect, located 40 kilometers east in the ADX-AT-II licence where ADX holds a 100% interest, and the SCHOE well, situated immediately south of HOCH in the ADX-AT-I area with a 50% stake.
Both subsequent wells will target biogenic gas in the Miocene Hall formation, utilizing a consistent seismic-driven approach. Beyond this initial campaign, ADX Energy has identified up to ten additional shallow gas prospects in Upper Austria, several of which are drill-ready after basin-wide seismic interpretation and data-led targeting. This growing inventory is expected to support sustained exploration success.
Infrastructure and Market Context
The pathway to production is notably short, with existing pipeline infrastructure located within about 2 kilometers of the well site, providing a direct route to market in case of a discovery. ADX is considering a cluster-style development model, where multiple finds could be integrated through shared facilities to enhance returns. Supportive market conditions in Europe, including tight gas supplies and policies favoring domestic energy sources, are bolstering project economics by sustaining elevated pricing.
Concurrently, ADX Energy is advancing appraisal and flow testing at its deeper Welchau oil and gas play, adding scale and optionality to its Austrian portfolio. With HOCH-1 now drilling and additional wells in the pipeline, the company is leveraging a strategy focused on speed, simplicity, and scalability to potentially convert exploration successes into tangible production and cash flow.
