ADX Energy Ltd (ASX:ADX) is making significant strides in its Upper Austria operations with the initiation of construction for the Welchau-1 gas exploration well, marking a crucial milestone in unlocking the potential of the Welchau Gas Prospect.
Welchau-1 Well Operations
Anticipated to take approximately five weeks, the well site is expected to be ready for drilling by late January 2024.
RED Drilling & Services GmbH (RED) E-202 drilling rig will be deployed for the exploration, targeting the Welchau Investment Area within ADX’s ADX-AT-II license in Upper Austria.
Strategically located in the heart of Europe with a relatively shallow drill depth and proximity to gas pipelines, the Welchau-1 exploration well holds significant promise.
ADX estimates the best technical Prospective Resources at 807 BCFE (134 MMBOE), focusing on the same reservoirs as the nearby Molln-1 well, which demonstrated gas potential in 1989.
Anshof-2 Well Operations
In parallel, operations at the Anshof-2 well have witnessed a temporary suspension with the release of the RED E-202 drilling rig upon completion of these operations.
The focus now shifts to further appraisal and development drilling at Anshof post the completion of the Welchau-1 gas exploration well.
The Anshof-2 appraisal well, spudded on the 13th of November 2023, is strategically located within ADX’s ADX-AT-II license in Upper Austria, where ADX maintains a 60% economic interest.
Welchau Investment Area Economic Interests
Within the Welchau Investment Area, ADX holds an impressive 80% economic interest, encompassing not only the Welchau Gas Prospect but also emerging gas prospects within the ADX-AT-II license in Upper Austria.
A key partnership in this venture involves MCF Energy Ltd. (TSXV – MCF.V), which has entered into an Energy Investment Agreement (EIA).
Under this agreement, MCF will fund 50% of the Welchau-1 well costs, securing a 20% economic interest in the Welchau Investment Area.
ADX Energy’s Australian Stock Exchange-listed share price has risen 1.09% and is currently trading at $0.093 (9:15am UTC+ 8 hours).