ADX Energy Commences Austrian Gas Drilling Campaign with First Well
ADX Energy has officially launched its 2026 Austrian drilling campaign by mobilising a rig for the HOCH-1 shallow gas well, with spudding scheduled for April 16. This move initiates a three-well program designed to accelerate production growth in the region.
Mobilisation and Well Details
The mobilisation of the MND Drilling and Services rig began three days ago at the HOCH-1 site within the ADX-AT-I exploration licence in Upper Austria. ADX Energy holds a 50 per cent economic interest in this well. HOCH-1 is planned for a rapid 14-day turnaround, targeting shallow, gas-charged Miocene sandstones that are part of the proven and prolific Hall formation.
This well boasts a mean prospective resource of 8.0 billion cubic feet (Bcf) of gas, with a high case estimate of 17.3Bcf. Analogue wells in the vicinity, tapping the same reservoir, have achieved flow rates of up to 9 million standard cubic feet (mscf) per day, equivalent to approximately 1500 barrels of oil equivalent, highlighting the potential for robust early-stage production.
Technical Specifications and Strategy
HOCH-1 will be drilled to a total depth of 1430 metres, aiming for reservoir sands at a vertical depth of 1075 metres. If gas is discovered, the well will be cased and suspended for production testing, facilitating a quick connection to pipeline infrastructure located just 2 kilometres away.
The prospect has been refined using modern 3D seismic and amplitude-versus-offset analysis, which has identified a solid stratigraphic pinch-out trap supported by compelling direct hydrocarbon indicators. ADX Energy reports that this technology-driven approach has reduced geological risk and positioned the well more favourably compared to previous basin drilling efforts.
Executive Commentary and Broader Campaign
"We are very pleased to commence our shallow gas program operations at the HOCH-1 prospect. The HOCH-1 well (50% economic interest) is the first well in a program of three permitted shallow gas wells capable of rapidly adding to our Austrian production base," said ADX Energy executive chairman Ian Tchacos.
HOCH-1 serves as the initial phase of a rapid three-well shallow gas campaign, which also includes the GOLD-1 and SCHOE-1 prospects. ADX holds a 100 per cent interest in GOLD-1. This strategy is characterised as a low-cost, high-impact opportunity, leveraging simple geology, strong deliverability, and proximity to infrastructure.
Resource Potential and Future Prospects
Across the three-well campaign, ADX is pursuing a combined multi-prospect inventory with a resource base estimated in the tens of billions of cubic feet of gas. This is anchored in a shallow, biogenic methane play that offers low risk and repeatability. The Hall formation targets feature straightforward stratigraphic traps with distinct seismic signatures, enabling efficient drilling, cost-effective appraisal, and swift development.
Beyond these immediate targets, ADX has identified a pipeline of seven additional shallow gas prospects across its Upper Austria acreage, all refined using advanced seismic techniques and comprehensive basin-wide data analysis.
Parallel Activities and Market Conditions
In parallel, ADX is advancing testing at its Welchau-1 well, maintaining multiple value streams across its Austrian operations. By integrating the shallow gas campaign with the deeper, higher-impact Welchau-1 oil and gas appraisal, the company aims to blend near-term cash flow catalysts with longer-term upside potential.
Externally, ADX also maintains exposure to broader European energy plays, including its Sicilian gas assets, providing geographic diversification to its strategy. Macro conditions are favourable, with European gas prices recently exceeding EUR 49 per megawatt hour, driven by Middle Eastern geopolitics and shifts away from Russian gas, enhancing the economic viability of successful outcomes.
Conclusion and Outlook
With the rig mobilised and drilling imminent, ADX Energy is poised to transform its Austrian ambitions into tangible production and cash flow in the near term. If HOCH-1 proves successful, it could catalyse a fast-paced series of results, with two additional wells and up to seven more prospects in the pipeline, making this a significant development to monitor.
