Perth-based ADX Energy is gearing up for a catalyst-rich start to 2026 in Upper Austria, blending near-term production testing with a multi-well shallow gas exploration campaign. The company has confirmed that flow testing at its significant Welchau-1 discovery will restart in February, while preparations for up to three new shallow gas wells are finalised.
Welchau-1: From Promising Discovery to Imminent Flow Test
ADX punched the Welchau-1 well in early 2024, immediately capturing market attention by intersecting a massive 450-metre hydrocarbon column. Initial estimates suggested a liquids-rich gas and condensate system with a mean resource of approximately 85 million barrels of oil equivalent (MMBOE). Intriguingly, the company later indicated the system might be dominated by high-quality light oil, which would significantly boost its commercial appeal.
A workover rig is now contracted and scheduled to mobilise in the first week of February 2026. The plan involves re-entering the well to resume flow testing on the shallowest Reifling formation. This interval has already been perforated, with earlier downhole sampling recovering oil. The process will involve using a wireline swab tool to clean out the wellbore, followed by an acid stimulation program designed to improve flow from the naturally fractured carbonate reservoir.
A Strategic Shift to Shallow Gas Prospects
While Welchau-1 remains the headline act, ADX's broader Austrian strategy is firmly focused on its portfolio of shallow gas prospects. The company has matured seven such targets across its ADX-AT-I and ADX-AT-II licences. These prospects target reservoirs containing around 99 per cent pure methane, are close to existing gas pipelines, and are suitable for rapid development if successful.
The first of these, HOCH-1, is expected to be fully permitted by mid-January. Site construction will begin immediately after, with drilling to follow swiftly. HOCH-1, within the ADX-AT-I licence shared with MND Austria, carries a mean prospective resource of 8 billion cubic feet of gas.
ADX plans to follow with GOLD-1 in a 100% ADX-held area, and a third prospect, SCHOEN-1, expected to be permitted by mid-February. An experienced European onshore rig has already been secured for the campaign.
Repeatable Model and Material Upside for 2026
This shallow gas program is designed for repeatability, with several prospects in tight clusters. This allows any discoveries to be developed as a hub-style project, sharing infrastructure to keep costs down and accelerate production timelines. The targets were generated using advanced 3D seismic and AI analysis of basin-wide data, aiming to keep geological risk low.
With a 75 per cent economic interest in Welchau and full ownership over large parts of its shallow gas acreage, success across even a portion of this 2026 program could materially transform ADX Energy's fortunes. The coming months, as rigs roll into position and final permits land, represent a pivotal period for the company's European ambitions.
