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ADX Secures Drilling Permit for Giant Welchau Gas Prospect

16 August 2023 15:02
ASX:ADX

Securing a drilling permit for its Welchau Gas Prospect in Austria, ADX Energy (ASX:ADX) is set to commence drilling in the fourth quarter of 2023, with an estimated program duration of approximately 39 days.

Austrian Alps Potential

The Welchau Gas Prospect is situated in the foothills of the Austrian Alps with a relatively shallow drill depth of approximately 1120m TVD, and lies roughly 18km from the national gas pipeline, offering vast opportunities to tap into Austria’s natural gas supply.

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Figure 1: Map showing the ADX-AT-II license area, the Welchau Farmin Area (red dashed border), the Welchau-1 well drilling location in the Northern Calcareous Alps and the recently discovered and now producing Anshof oil field to the North

The drilling permit for Welchau-1, which included the submission of the drilling program, documentation, expert opinion and a public hearing with no objections, has been issued by the Mining Authority on behalf of the ministry of finance of the Republic of Austria.

ADX Energy’s drilling permit is tied to two specific rig types including a drilling rig and a work over rig provided by drilling contractor RED Drilling & Services GmbH (RED) and will be completed during the winter period from 1 October 2023 – 31 March 2024, in order to comply with required safety, noise and environmental standards.

The scope of the permit enables the testing and drilling of the Welchau-1 well with additional longer-term production tests if necessary.

‘Prospective Resource’

The Welchau gas prospect has ‘best technical Prospective Resources’ of 807 BCFE (134 MMBOE), with the main target being the Triassic Steinalm Formation, a fractured carbonate reservoir trapped in a trending ramp anticline with more than 20 km lateral extent and 100 km2 maximum closure area.

Welchau aims to tap into the same reservoirs as the adjacent Molln-1 well, which successfully assessed pipeline-grade gas back in 1989 and intersected a 400m gas column and acquired pressure data from a depth of 900m, revealing condensate-rich pipeline gas. ADX Energy is strategically positioning Welchau downstream of Molln-1, with the aspiration to access reservoirs exhibiting comparable gas characteristics.

Ensuring Drilling Success

ADX has prepared all necessary items to commence drilling, and intends to finalise a drilling rig slot with RED following granting of the Environmental Clearance.

ADX Executive Chairman Ian Tchacos commentedthe Board of ADX is very impressed and encouraged by the transparent and efficient permitting process conducted by the Austrian Mining Authority for evaluating extensive technical, legal and environmental documentation, as well as openly addressing relevant stakeholder and community interests.”

“The Welchau exploration project is an exceptional domestic energy supply and economic opportunity for the State of Austria. ADX and our partner MCF Energy Ltd are committed to responsible gas exploration. We look forward to the ongoing engagement with our stakeholders and the local community based on factual information in relation to the project’s environmental impact, the relevant safeguards deployed, as well as the potential social and economic benefits if the well is successful.”

ADX’s Australian Stock Exchange-listed share price is currently selling at $0.009 (2:05pm UTC+ 8 hours).

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