ADX Targets 6.4 Bcf at GOLD Prospect with Q4 2025 Drilling Plans
ADX Energy has formalised licence amendments and identified four drill-ready shallow gas prospects in Upper Austria, targeting Q4 2025 for initial drilling. The company is advancing farm-in discussions to capitalise on a low-risk, pipeline-proximate gas opportunity in a sought-after European market.
- Formal amendment of Upper Austria licence areas to optimise shallow gas play
- Identification of 13 prospects, including four drill-ready in 100% ADX acreage
- Low-cost, low-risk shallow gas targets near existing pipeline infrastructure
- Planning and permitting underway for Q4 2025 drilling of first prospect cluster
- Active farm-in discussions to secure partners and funding for development
Licence Amendments and Strategic Positioning
ADX Energy Ltd (ASX:ADX) has taken a significant step forward in its Upper Austria shallow gas play by formalising licence area variations that optimise its acreage for low-risk, shallow gas prospects. These amendments, approved by the Austrian Ministry of Finance, maintain the company's total exploration area while strategically relinquishing less prospective zones to focus on high-potential targets close to existing pipeline infrastructure.
Prospect Maturation and Seismic Innovation
Over the past two years, ADX’s Vienna-based team, supported by international experts, has developed a transformational shallow gas play using advanced seismic techniques. By integrating artificial intelligence with seismic attribute and amplitude versus offset (AVO) analysis, the company has identified 13 prospects that mirror the seismic signatures of historic, commercially successful gas fields in the region. This data-driven approach has enabled ADX to mature four prospects to drill-ready status within its 100% owned acreage, with an additional two prospects held jointly with MND Austria a.s. and seven more under active maturation.
Drill-Ready Prospects and Development Strategy
The four drill-ready prospects, named GOLD, ZAUN, GRAB, and PIC, are characterised by their shallow depths (850 to 1,210 metres) and proximity to an extensive pipeline network, which promises rapid commercialisation upon successful drilling. The GOLD prospect, in particular, stands out with a best-case prospective resource estimate of 6.4 billion cubic feet (Bcf) of gas and is slated as the first target in a cluster drilling program planned for late 2025. ADX intends to drill wells in clusters to maximise production rates and reduce development costs through shared surface facilities.
Funding and Partnership Outlook
Recognising the capital-efficient nature of the shallow gas play, ADX has initiated farm-in discussions aimed at securing partners and co-investors to participate in the upcoming drilling campaign. The company has already engaged with MND Austria a.s. and MCF Energy Austria GmbH, leveraging a partnership model that has proven effective in previous Austrian projects. This collaborative approach is designed to mitigate risk while accelerating development timelines in a European gas market that remains highly competitive and strategically important.
Looking Ahead
With planning and permitting activities underway, ADX is positioning itself to commence drilling in Q4 2025. Success in the initial cluster could unlock further development opportunities across the broader acreage, underpinning organic growth and strengthening the company’s foothold in the region’s energy landscape. The shallow gas play represents a compelling blend of low risk, cost efficiency, and proximity to infrastructure, aligning well with market demand for secure, regional gas supplies.
Bottom Line?
ADX’s methodical build-out of its Upper Austria shallow gas play sets the stage for a pivotal drilling campaign that could reshape its growth trajectory.
Questions in the middle?
- Will farm-in agreements materialise in time to support the planned Q4 2025 drilling?
- How will initial drilling results at GOLD and adjacent prospects influence ADX’s development strategy?
- What are the potential timelines and scale for commercial production if drilling confirms resource estimates?
