ADX Energy Launches Aggressive Triple-Front Austrian Campaign
ADX Energy has launched an ambitious three-pronged operational campaign across its Austrian assets, blending high-impact exploration with near-term production optimization in a strategic push to unlock value. The company is simultaneously advancing flow testing at its promising Welchau-1 discovery, preparing new shallow gas drilling, and implementing well workovers in established fields.
Welchau-1 Flow Testing Resumes with Major Implications
The company has commenced rigging up to resume critical flow testing at its Welchau-1 well in Upper Austria, targeting the prospective Reifling formation. A successful outcome here could dramatically enhance the commercial viability of the broader licence area. ADX originally drilled Welchau-1 in early 2024, encountering a substantial 450-metre hydrocarbon column that immediately captured market attention.
Initial assessments suggested a liquids-rich gas and condensate system with resource estimates ranging from 12 to 217 million barrels of oil equivalent, with a mean estimate around 85MMBOE. Subsequent analysis has intriguingly indicated the system might be dominated by high-quality light oil with associated gas, which would substantially improve the project's economic appeal compared to earlier gas-focused interpretations.
Shallow Gas Drilling Campaign Commences
Concurrently, ADX is advancing groundwork for its HOCH-1 shallow gas prospect, also located within its Upper Austria acreage. Earthworks and site preparation are currently underway ahead of drilling operations, with this well scheduled to be the first of three planned shallow gas targets. HOCH-1 will effectively lead the campaign, establishing parameters for subsequent wells GOLD-1 and SCHOE-1.
This shallow gas program benefits from a repeatable development model where multiple prospects could potentially feed into a centralized hub. This approach would distribute infrastructure costs across several fields and accelerate the timeline to first gas production, enhancing overall project economics.
Vienna Basin Production Optimization Underway
While exploration activities progress, ADX's operational teams are simultaneously focusing on extracting additional value from existing assets in the Vienna Basin. The company has initiated a series of well workovers across its oil and gas fields in the region, addressing subsurface inefficiencies in four separate wells.
The comprehensive workover program includes cleaning out a wellbore sand control installation and replacing a pump to increase production rates. These operational enhancements are designed to deliver incremental production gains from established fields, providing near-term cash flow while exploration programs develop.
Strategic Execution and Market Positioning
ADX Energy Executive Chairman Mr Ian Tchacos commented on the company's operational momentum, stating: "The Board of ADX is thankful to our Vienna management and operations team for planning, permitting and executing multiple concurrent work programs across the Company's asset base. Operating capability is becoming a rare commodity in the oil and gas industry due to years of under investment."
The company plans to provide continuous updates on Welchau-1 testing results throughout the evaluation phase. Operational progress for HOCH-1 will be reported following rig mobilization, with drilling currently scheduled to commence in late March. Results from the Vienna Basin workover campaign will be incorporated into the upcoming quarterly report.
This triple-front approach provides ADX with multiple value catalysts in the near term: potential commercial discovery at Welchau, new shallow gas targets entering the drilling phase, and incremental production improvements from existing fields. In a market environment that increasingly rewards consistent operational execution alongside exploration success, this balanced strategy represents a calculated approach to resource development.
