ADX Energy Confirms Hydrocarbon Flow at Welchau-1 Well in Austria

ADX Energy has reported encouraging initial flow test results from the Reifling Formation at its Welchau-1 well, confirming the presence of methane gas and potential light oil. Ongoing testing aims to establish sustained production and further reservoir characteristics.

  • Positive initial hydrocarbon flow from Reifling Formation
  • Methane gas and light oil presence confirmed at surface
  • Successful acid stimulation and swabbing operations
  • Welchau structure identified as significant overpressured hydrocarbon play
  • Further appraisal planned via side tracking or well deepening
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Initial Flow Test Success at Welchau-1

ADX Energy Ltd (ASX – ADX) has announced positive initial results from flow testing at its Welchau-1 well in Austria, targeting the Reifling Formation. The company successfully initiated flow after acid stimulation and swabbing operations, with methane gas and indications of light oil observed at surface. This marks a significant milestone for the project, which had previously faced delays due to environmental objections.

Technical Highlights and Testing Operations

The Reifling Formation, a 128-metre thick fractured carbonate reservoir, is the shallowest of four intersected in the Welchau-1 well. ADX applied a carefully controlled acidisation treatment, pumping six cubic metres of acid followed by a completion flush to stimulate the formation. Swabbing operations then unloaded hydrostatic pressure, allowing hydrocarbons to flow to surface. The presence of methane (CH4) and carbon dioxide (CO2) at surface confirms the reservoir’s hydrocarbon potential.

Ongoing testing will focus on assessing sustained flow rates, fluid sampling, and pressure measurements to better understand reservoir connectivity and production potential. Workover operations are scheduled to continue during weekdays, with further updates expected as results become available.

Strategic Importance of the Welchau Structure

The Welchau structure is recognised as a strategically significant hydrocarbon play characterised by overpressured reservoirs and multiple petroleum sources across several formations. The discovery includes gas condensate and potential light oil accumulations, with the Reifling Formation interpreted to lie near the oil-water contact. ADX holds a 75% economic interest in the licence and is exploring appraisal options including side tracking to target updip light oil or deepening to access gas-condensate zones.

This project builds on historic discoveries in the region, such as the Molln-1 well, and benefits from extensive geological and pressure data indicating a connected petroleum system. The recent court ruling allowing ADX to resume testing after environmental objections underscores the regulatory challenges but also the company’s commitment to advancing the asset.

Looking Ahead

ADX Energy’s initial flow test results at Welchau-1 provide a promising foundation for further appraisal and development. Confirming sustained production and reservoir characteristics will be critical next steps. The company’s methodical approach to testing and regulatory compliance positions it well to unlock value from this overpressured hydrocarbon play in Austria.

Bottom Line?

ADX’s Welchau-1 well is moving from promising test results to a critical appraisal phase that could reshape its European portfolio.

Questions in the middle?

  • Will sustained flow rates confirm commercial viability of the Reifling Formation?
  • How will further appraisal via side tracking or deepening impact project economics?
  • Could renewed environmental or regulatory challenges delay future operations?