Can ADX’s Welchau Well Deepening Unlock Austria’s Hydrocarbon Future?

Strategic Update on Welchau Appraisal Permit

ADX Energy Ltd (ASX – ADX) has provided a compelling technical update on its Welchau appraisal permit in Austria, revealing promising new insights into the scale and accessibility of hydrocarbon resources in the region. The company’s latest studies have identified a light oil accumulation approximately 500 metres updip from the Welchau 1 well, alongside a connected gas condensate system associated with the historic Molln 1 discovery.

This update integrates recent drilling data, pressure analysis, and refined geological mapping, painting a picture of a robust, overpressured petroleum system that spans multiple formations. The findings suggest that the Welchau anticline hosts both light oil and gas condensate resources in a shallower, more accessible structural setting than previously understood.

Resource Estimates and Technical Insights

According to ADX, the total unrisked prospective resources for the Welchau anticline stand at an estimated 18 million barrels of light oil and 125 billion cubic feet of gas. These figures are derived from probabilistic assessments consistent with industry standards and reflect a connected petroleum system with pressure communication between the Welchau and Molln wells.

Continuous hydrocarbon shows and light oil recovered from Welchau 1 confirm the presence of a light oil system within the Middle Triassic Steinalm Formation. Meanwhile, the Molln 1 well, drilled in the late 1980s, demonstrated gas condensate flow rates that reinforce the potential scale of the resource.

Next Steps – Well Deepening and Appraisal Testing

ADX plans to deepen the Welchau 1 well in the coming weeks to appraise these newly identified resources. The deepening will target both the updip light oil accumulation and the downdip gas condensate duplex, aiming to verify the presence of moveable hydrocarbons and better define reservoir characteristics.

Executive Chairman Ian Tchacos emphasised the strategic significance of the update, noting that the integration of historic data with new mapping and pressure studies has substantially improved the understanding of the Welchau play. The upcoming appraisal program is expected to provide critical data that could materially enhance the valuation and development prospects of the asset.

Broader Implications and Market Context

The Welchau appraisal permit lies within the Northern Calcareous Alps hydrocarbon fairway, a region with complex geology but significant exploration potential. ADX’s findings contribute to a growing narrative of underexplored opportunities in Austria’s oil and gas sector, where modern techniques and re-evaluation of legacy data are unlocking new resource potential.

While the resource estimates remain prospective and unrisked, requiring further appraisal to confirm commercial viability, the technical update positions ADX as a key player in advancing this frontier. Investors will be watching closely as the company progresses its testing program and refines its resource base.