ADX Energy (ASX: ADX) has hit gas at its HOCH-1 exploration well in Upper Austria, confirming gas-filled sands in the Miocene Hall formation at an approximate depth of 1,350 metres.
The gas detected is biogenic, comprising 100% methane, aligning with pre-drill 3D seismic predictions.
ADX Energy is the operator and holds a 50% economic interest in HOCH-1.
The well is expected to be deepened to at least MD 1,550 metres due to additional gas shows, with a wireline logging program scheduled for 7 May to confirm reservoir quality and gas saturation.
If these results are positive, casing, completion, and production testing will follow.
The HOCH prospect's mean prospective resource is estimated at 8.0 BCF, with a high case of 17.3 BCF.
Shallow Gas Program Advances
HOCH-1 marks the first of three shallow gas prospects ADX Energy plans to drill in 2026.
This program focuses on low-risk opportunities near existing infrastructure in Upper Austria.
Historically, nearby wells in the Hall formation have reported initial production rates of up to 9 mmscf/d, which equates to approximately 1,500 boe/d.
The company has already permitted two additional shallow gas prospects for drilling this year.
2025 Annual Report Highlights
ADX Energy's 2025 Annual Report highlighted the preparation for the HOCH-1 shallow gas well drilling, initially slated for April 2026.
The report noted that similar shallow gas prospects have a track record of delivering between 4 to 5 mmscf/d and consist of 99% pure methane, indicating biogenic gas.
Furthermore, ADX Energy is actively planning a European listing on the Oslo Børs Euronext Growth during 2026.
This move aims to boost the company's visibility and liquidity for European investors.
Outlook Hinges on Testing
The successful encounter of gas-filled sands at HOCH-1 is a positive development, validating ADX Energy's shallow gas exploration strategy in Austria.
The immediate focus shifts to wireline logging and subsequent production testing to determine reservoir quality, net pay, and commercial viability.
Success here could de-risk further prospects and support the company's planned European listing.
Investors should be aware of several inherent risks, including the execution of the shallow gas program itself, potential commodity price volatility, and regulatory or timing delays.
The Welchau-1 well also experienced testing delays due to environmental clearance objections, eventually resolved by the Upper Austrian State Administrative Court, and its testing recovered light oil and gas but lacked stable-flow inflow, leading to suspension for pressure build-up observations.
