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ADX Energy kicks off Upper Austria shallow gas exploration campaign with mobilisation of rig

• ADX Energy mobilises rig to drill the Hochfeld-1 (HOCH-1) shallow gas exploration well in Upper Austria
• The well is the first of three wells that the company is drilling to increase its production
• Success at HOCH could deliver up to 1500 barrels of oil equivalent per day production

Special Report: ADX Energy has embarked on its shallow gas drilling campaign with the mobilisation of a rig to drill the Hochfeld-1 exploration well in the ADX-AT-I exploration licence in Upper Austria.

Hochfeld-1 (HOCH-1) is the first of three shallow gas wells the company is drilling which may help to alleviate Europe’s gas needs.

The well will target highly productive shallow gas reservoirs within Miocene aged sandstones of the Hall formation.

Similar Hall formation wells have recorded initial production rates of up to 9 million standard cubic feet of gas per day.

ADX Energy (ASX:ADX) previously estimated the HOCH prospect to host mean prospective resources of 8 billion cubic feet and high case prospective resources of 17.3Bcf.

HOCH-1 is expected to take about 14 days to reach the planned total depth of 1430m and evaluate assuming a success case scenario.

A successful well will be cased and suspended for production testing shortly after to determine the reserves potential of the discovery. 

Production growth

Executive chairman Ian Tchacos said the company was pleased to start shallow gas 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,” he added. 

“Success at HOCH-1 could deliver up to 1500 barrels of oil equivalent per day production based on historic well performance for the targeted Hall formation.”

Tchacos also highlighted the potential for further growth, noting that another seven shallow gas prospects have been identified using advanced seismic techniques across the company’s Upper Austria prospect.

HOCH-1 will be followed by the GOLD-1 (100% economic interest) and SCHOE-1 (50% economic interest) wells.

“The commencement of the shallow gas program comes a time when access to new domestic gas production in Europe is critical,” Tchacos said. 

“Restrictions in global LNG supply from Qatar as well as strengthening European policy restricting the purchase of Russian gas has resulted in European gas prices in excess (of) EUR49 per MWhr (equivalent to US$16.8MMBTU).”

Specialist equity capital markets and advisory business Auctus Advisors had previously flagged its confidence in the GOLD cluster of shallow gas prospects, estimating they carried a 77% chance of success.

Source: Stockhead