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ADX Energy Begins Well Site Construction for Giant Welchau-1 Gas Well

15 December 2023 09:16
ASX:ADX
ADX Energy Begins Well Site Construction For Giant Welchau 1 Gas Well

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).

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