ADX rigs up first of three wells in Upper Austria gas push

ADX Energy has fired the starting gun on its 2026 Austrian drilling campaign, mobilising a rig for the HOCH-1 shallow gas well, with spudding locked in for April 16. The move marks the first cab off the rank in a three-well charge aimed at fast-tracking production growth.

Mobilisation of the MND Drilling and Services rig got underway three days ago at the HOCH-1 site within the ADX-AT-I exploration licence in Upper Austria, where the company holds a 50 per cent economic interest. The well is slated for a swift 14-day turnaround, homing in on the shallow, gas-charged Miocene sandstones, part of the proven and prolific Hall formation.

HOCH-1 hosts a tidy mean prospective resource of 8.0 billion cubic feet (Bcf) of gas, swelling to a high case of 17.3Bcf. Nearby analogue wells tapping the same reservoir have delivered standout flow rates of up to 9 million standard cubic feet (mscf) per day, equivalent to roughly 1500 barrels of oil equivalent, underscoring the potential for punchy, early-stage production.

The well will be drilled to a total depth of 1430 metres, targeting reservoir sands at a vertical depth of 1075 metres. If the drill bit taps gas, the well will be cased and suspended for production testing, paving the way for a speedy tie-in to pipeline infrastructure just 2 kilometres away.

The HOCH-1 prospect has been fine-tuned using modern 3D seismic and amplitude-versus-offset analysis, helping to carve out a solid stratigraphic pinch-out trap backed by compelling direct hydrocarbon indicators. ADX says this tech-driven targeting has trimmed the well’s geological risk and put it on a firm footing compared to earlier basin drilling.

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.

HOCH-1 is the opening salvo in a rapid-fire, three-well shallow gas campaign that also includes the GOLD-1 and SCHOE-1 prospects, with ADX holding a 100 per cent interest in GOLD-1.

ADX’s shallow gas strategy is shaping up as a low-cost, high-impact and highly repeatable opportunity, underpinned by simple geology, strong deliverability and proximity to infrastructure. ADX has flagged a cluster-style development plan in which multiple discoveries can be stitched together through shared facilities to supercharge project economics.

Across the three-well campaign, ADX is chasing a chunky combined multi-prospect inventory with a resource base running into the tens of billions of cubic feet of gas, anchored in a shallow, biogenic methane play that ticks the boxes for low risk and repeatability. The Hall formation targets are relatively straightforward stratigraphic traps with standout seismic signatures, enabling fast-turnaround drilling, cost-conscious appraisal and quick-step development.

Beyond these immediate and drill-ready targets, the company has also lined up a pipeline of seven additional shallow gas prospects across its Upper Austria acreage, all honed using advanced seismic techniques and basin-wide data analysis.

In parallel, ADX is pressing ahead with testing at its Welchau-1 well to keep multiple value levers turning across its Austrian footprint. By combining the shallow gas sprint with the deeper, higher-impact Welchau-1 oil and gas appraisal play, the company is effectively blending near-term cash flow catalysts with longer-dated upside.

Beyond Austria, ADX also maintains exposure to broader European energy plays, including its Sicilian gas assets, adding valuable geographic spread to its strategy.

Macro conditions are also playing in ADX’s favour. European gas prices have surged, recently topping EUR 49 per megawatt hour, driven by Middle Eastern geopolitics and ongoing policy pivots away from Russian gas. These dynamics significantly sweeten the economics of the success case scenario.

With the rig rolling up and the bit about to bite, ADX looks primed to turn its Austrian ambitions into tangible barrels and cash flow in short order.

If HOCH-1 hits the mark, it could well set the stage for a fast-paced, potentially rewarding run of results. With two more wells to follow and up to seven additional prospects waiting in the wings, this is one to watch.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au