Can ADX Energy’s 2026 Drilling Drive a Production Comeback?
ADX Energy reports a 17% production dip in Q3 2025 due to well downtime but boosts sales revenue by 23%, while advancing drilling plans and acquiring key infrastructure.
- Q3 production down 17% to 251 BOEPD amid Vienna Basin well downtime
- Sales revenue up 23% to A$3.2 million driven by higher oil prices
- Five well workovers scheduled to restore production in Q4 2025
- Land and permits secured for three shallow gas prospects drilling in early 2026
- Acquisition of Anshof Permanent Production Facility enhances processing capacity
Production and Revenue Dynamics
ADX Energy Ltd (ASX, ADX) reported a 17% decline in its average net production rate for the third quarter of 2025, falling to 251 barrels of oil equivalent per day (BOEPD). This reduction was primarily due to downtime at wells in the Vienna Basin Fields, where a series of five well workovers are planned for the final quarter to restore output. Despite the production dip, the company saw a 23% increase in sales revenue to A$3.2 million, buoyed by a modest rise in Brent oil prices to an average of US$69.07 per barrel.
Strategic Infrastructure Acquisition
In a significant operational move, ADX completed the purchase of the Anshof Permanent Production Facility (PPF), a processing hub with a 3,000 barrel per day capacity. Previously leased, the acquisition solidifies ADX’s control over critical infrastructure supporting the Anshof Oil Field in Upper Austria. The PPF's capabilities include processing oil from multiple wells, additional storage, and utilization of associated gas for power generation, positioning ADX to efficiently scale production from existing and future wells.
Exploration and Development Outlook
ADX has secured land and obtained drilling and environmental permits for three shallow gas prospects, HOCH, GOLD, and SCHOE, with drilling scheduled for early 2026. These prospects are part of a broader portfolio of over six follow-up shallow gas targets, all characterized by low geological risk and proximity to existing infrastructure, enabling rapid commercialisation if successful. The company is actively pursuing farmout agreements to fund its 100% interest in the ADX-AT-II GOLD Area cluster, reflecting a strategic approach to share exploration risk and capital requirements.
Regulatory and Environmental Progress
ADX overcame a significant regulatory hurdle when the Upper Austrian State Administrative Court overturned objections to the environmental clearance for the Welchau-1 well. This ruling clears the way for flow testing to resume in January 2026, a critical step in appraising the Welchau Deep prospect, which holds a mean prospective resource estimate of 125 billion cubic feet (BCF) of gas. The company also successfully completed a methane Leak Detection and Repair Program, confirming compliance with stringent EU regulations and underscoring its commitment to environmental stewardship.
Broader Market and Growth Initiatives
Looking beyond Austria, ADX is advancing its offshore Italy portfolio with the Sicily Channel Gas Exploration Permit, which holds a best estimate prospective resource of 369 BCF. The company plans a resource estimate update in Q4 2025, incorporating new data and nearby analogous fields. Additionally, ADX is exploring a potential dual listing on Oslo Børs’ Euronext Growth market to enhance European investor access, improve liquidity, and support future growth opportunities.
Bottom Line?
ADX’s upcoming drilling campaigns and infrastructure ownership set the stage for a potential production rebound and growth in 2026.
Questions in the middle?
- Will the planned well workovers in the Vienna Basin fully restore production levels in Q4 2025?
- How will farmout negotiations for the GOLD Area cluster influence ADX’s capital structure and exploration pace?
- What impact will the potential Oslo dual listing have on ADX’s share liquidity and investor base?