ADX Energy Advances HOCH-1 Shallow Gas Well Drilling in Upper Austria with Significant Resource Potential

HOCH-1 Well Progressing on Schedule

ADX Energy Ltd (ASX:ADX) continues to advance its HOCH-1 shallow gas exploration well in Upper Austria, with drilling operations reaching 950 metres measured depth as of 3 May 2026. The well, targeting Miocene-aged sandstone reservoirs within the Hall formation, aims for a total depth of approximately 1430 metres. This milestone marks steady progress since spudding on 16 April, with drilling expected to reach total depth within three days followed by wireline logging.

The HOCH-1 well is the first of three permitted shallow gas prospects ADX plans to drill in 2026 within its ADX-AT-I exploration licence. ADX operates the licence and holds a 50% economic interest in the HOCH prospect. The company’s approach focuses on tapping highly productive biogenic gas reservoirs, with historical analogues nearby delivering initial production rates up to 9 million standard cubic feet per day (mmscf/d), approximately 1,500 barrels of oil equivalent per day.

Significant Prospective Resource Estimates

The HOCH prospect carries a mean prospective resource estimate of 8.0 billion cubic feet (BCF) of gas, with a high case resource potential of 17.3 BCF according to ADX’s probabilistic assessments. These unrisked estimates reflect the volumes potentially recoverable pending successful discovery and development. The company highlights the economic upside driven by shallow drilling depths, proximity to open access pipeline infrastructure, and elevated European gas prices, which could generate gross revenues exceeding EUR 120 million for an 8 BCF discovery.

ADX’s resource estimates and drilling plans build on earlier announcements, including the initial spud update in mid-April. The current drilling depth and operational details align with the company’s previously outlined timelines and technical expectations for the HOCH-1 well’s target formations. The well targets a structurally robust stratigraphic trap confirmed by 3D seismic data showing amplitude anomalies and direct hydrocarbon indications (DHI).

Cluster Development Potential and Infrastructure Access

Beyond HOCH-1, ADX plans to drill two additional shallow gas prospects in 2026, including the nearby SCHOE prospect located immediately south of HOCH-1. These prospects are technically independent but offer potential for cluster development, sharing infrastructure such as gas processing facilities and pipeline tie-ins. The proximity of the HOCH-1 well to the Upper Austrian pipeline grid, approximately 2 kilometres away, enhances the feasibility of rapid commercialisation if exploration results prove positive.

Operationally, the drilling rig MND Drilling & Services a.s. MD-150 continues to support the program efficiently. Recent well construction activities included drilling the 8 ½ inch hole section to 431 metres, running and cementing 7 inch casing, installing blowout preventers, and drilling ahead in the 6 1/8 inch hole to 950 metres. The next phase involves drilling to total depth at 1430 metres before conducting wireline logging to evaluate reservoir quality and fluid content.

ADX’s drilling update complements its recent capital raising and operational funding initiatives, which have bolstered its capacity to execute the 2026 drilling campaign. The company’s strategic focus on shallow gas in Upper Austria aligns with broader European energy market dynamics, where high gas prices and supply constraints underpin the economic viability of new discoveries.