PEAK ASSET: MORNING WRAP 17 February: ASX 200 futures are pointing up 15 points or 0.2 per cent to 8895 | Oil lifts amid continuing US-Iran tensions | ADX Energy spots initial surface gas from flow testing of Welchau-1 well |

ADX Energy spots initial surface gas from flow testing of Welchau-1 well

• ADX Energy has observed hydrocarbon gas at surface upon resumption of testing at its Welchau-1 well in Austria targeted the Reifling Formation
• It is the first time flow has been observed from this formation
• A small amount of acid was used to successfully induce flow from a previously unresponsive reservoir
• Further testing will now include more swabbing to evaluate the potential for continuous flow of oil, gas, or both oil and gas

Special Report: ADX Energy has reported encouraging initial results from flow testing at its Welchau-1 well in Austria, with hydrocarbon gas from the targeted Reifling Formation observed at surface for the first time.

Management noted that a small amount of acid was used to successfully induce flow from a previously unresponsive reservoir.

More specifically, the 128m thick Reifling Formation is the shallowest of four fractured carbonate reservoirs previously intersected in the Welchau-1 well.

Testing of this structure resumed recently following an acid treatment designed to initiate flow.

ADX Energy (ASX:ADX) said that six cubic metres of acid were pumped into the well. To ensure full acid displacement into the reservoir the acid was followed by a completion brine flush.

The acid was then allowed to soak before the well was flowed back.

Subsequently, the well was swabbed to initiate flow and to unload the hydrostatic column of brine. 

In turn, swabbing resulted in brine, methane, and carbon dioxide being flowed to surface.

In other words, the recovered well fluids included hydrocarbon gas which was observed at surface.

Next steps

Moving forward, testing will now include further swabbing to clean up the well and to evaluate the potential for continuous flow of oil, gas, or both oil and gas.

ADX also plans to sample the well fluids to establish the hydrocarbon content and its type.

In addition, the company will look to determine the well bore pressure.

If continuous production is established, the well flow rate will also be measured.

Welchau-1 flow testing overview

ADX drilled the Welchau-1 well in 2024.

The well delivered hydrocarbon shows across a 450m interval, intersecting three primary carbonate reservoirs considered to be promising for testing and ongoing appraisal.

Testing of the Reifling Formation has now resumed after the company nailed down regulatory approval in September last year.

The primary objective of the current flow testing is to determine the hydrocarbon content and flow characteristics of the Reifling Formation.

ADX owns a 75% stake in the Welchau-1 discovery.

Source: Stockhead