ADX Targets 49.4 Bcf Mean Prospective Gas Resources with 2025 Multi-Well Program

A Significant Step in Upper Austrian Gas Exploration

ADX Energy Ltd (ASX – ADX) has released a comprehensive update on its shallow gas exploration activities in Upper Austria, revealing seven drill-ready prospects within its ADX-AT-I and ADX-AT-II licences. These prospects collectively hold a mean prospective resource estimate of nearly 49.4 billion cubic feet (Bcf) of gas, underscoring the potential scale of this underexplored play.

The company is advancing plans for a multi-well drilling campaign slated to commence in late 2025, with permitting, rig contracting, and land acquisition already underway. This program aims to capitalise on the proven Miocene-age Hall sandstone formation, a geological setting with a history of gas production and supported by extensive 3D seismic data and advanced AI-driven interpretation techniques.

Optimising Development Through Cluster Drilling

ADX’s strategy involves developing the discoveries in clusters, a move designed to maximise production rates while minimising costs through shared infrastructure and facilities. The GOLD cluster, located within the 100% owned ADX-AT-II licence, exemplifies this approach with three closely situated prospects; GOLD, GRAB, and ZAUN; targeting stacked shallow gas sands with high chances of success.

By leveraging slim-hole drilling technology and wheeled rigs, ADX expects to keep well costs low, with drilling durations averaging nine days per well. The proximity to existing gas networks and infrastructure further enhances the economic attractiveness of the project, potentially enabling rapid tie-in and production ramp-up.

Farm-In Discussions and Partnership Potential

Recognising the value of collaboration, ADX has initiated farm-in discussions with multiple interested parties, aiming to secure partners by early 2026. This move could provide additional capital and expertise to accelerate the drilling program and subsequent development phases. The company retains 100% equity in most prospects, except for certain areas where it holds a 50% interest alongside partners such as MND Austria a.s.

The farm-in process and cluster development concept reflect ADX’s pragmatic approach to unlocking value from its Upper Austrian shallow gas assets, balancing exploration risk with operational efficiency and market opportunities.

Context and Forward Outlook

Upper Austria’s gas sector has a long-established history, with cumulative production from the Hall Formation reaching 232 Bcf. ADX’s application of modern seismic technologies and AI-driven analysis has rejuvenated interest in this mature basin, identifying new prospects with promising geological signatures and commercial potential.

As ADX progresses towards drilling, the market will be watching closely for results that could validate the resource estimates and underpin a new phase of gas production in the region. The company’s ability to execute its multi-well program efficiently and secure farm-in partners will be critical to realising the full value of these shallow gas prospects.