ADX Energy’s HOCH-1 Well Confirms Gas Discovery Aligned with Seismic Targets

Gas Discovery Matches Seismic Forecasts

ADX Energy Ltd (ASX:ADX) has reported a significant milestone with its HOCH-1 shallow gas exploration well intersecting gas-filled sands at approximately 1350 metres depth in the Miocene-aged Hall formation. This discovery aligns closely with pre-drill 3D seismic predictions, bolstering confidence in the prospect’s potential. The gas is interpreted as biogenic methane, confirmed through drill cuttings, mud-logs, and compositional gas analysis, indicating a high concentration of 100% methane.

The well was drilling ahead at 1367 metres measured depth on 6 May 2026, with plans to deepen to at least 1550 metres to fully evaluate the gas-bearing sandstones. This step aims to ensure comprehensive penetration of the reservoir intervals identified by seismic imaging. The close correlation between the seismic direct hydrocarbon indicators and the actual gas shows underscores the value of ADX’s exploration approach in Upper Austria.

ADX’s Executive Chairman Ian Tchacos emphasised the encouraging nature of these results, noting that the upcoming wireline logging scheduled for 7 May will be critical to confirming reservoir quality, thickness, and gas saturation. Should the logging data support current findings, the well will be cased and completed ahead of production testing to assess deliverability and establish reserves estimates.

Resource Potential and Economic Implications

The HOCH prospect carries a mean prospective resource estimate of 8.0 billion cubic feet (BCF) and a high-case scenario of 17.3 BCF. These estimates remain prospective, subject to further appraisal and development risk, but the initial production potential is promising. Comparable nearby wells in the Hall formation have recorded initial flow rates up to 9 million standard cubic feet per day (mmscf/d), equivalent to roughly 1,500 barrels of oil equivalent per day.

Given the shallow drilling depths, proximity to existing pipeline infrastructure, and elevated European gas prices, the economics of a successful HOCH development appear robust. ADX notes that an 8 BCF discovery could translate into gross revenues exceeding EUR 120 million under current pricing conditions. The potential to cluster developments with adjacent prospects like SCHOE-1 and GOLD-1 further enhances the project's commercial appeal.

ADX holds a 50% economic interest in the HOCH-1 well and operates the ADX-AT-I licence. The company plans to drill two additional shallow gas prospects in Upper Austria during 2026, building on the momentum from the HOCH-1 results. This drilling campaign is part of a broader strategy to unlock multiple shallow gas targets matured through high-resolution 3D seismic surveys and geological modelling.

Next Steps in Well Evaluation and Testing

Following the completion of wireline logging and quick-look analysis, ADX intends to run casing and complete the HOCH-1 well. Production testing will then be conducted to verify reservoir productivity and refine reserves estimates. These results will be pivotal in determining the commercial viability of the discovery and guiding development decisions.

The operational progress at HOCH-1 builds on the company’s earlier update when drilling reached 950 metres depth, targeting a total depth of 1,430 metres. The current drilling and evaluation timeline anticipates a roughly 14-day campaign, assuming success, with the well's location offering convenient access and a short pipeline tie-in distance of approximately 2 kilometres.

The encouraging correlation between the gas shows and seismic data also adds confidence to the prospects planned for later this year, including GOLD-1 and SCHOE-1. These are technically independent, low geological risk targets that could further expand ADX’s shallow gas footprint in the region.

ADX’s recent drilling progress and resource estimates follow its successful capital raising earlier in 2026, which has underpinned the company’s exploration activities in Austria and Italy. The company’s methodical approach to exploration and appraisal is reflected in the detailed seismic work and operational discipline evident at HOCH-1.

As the wireline logging results and production testing data become available, the market will gain clearer insight into the reservoir’s commercial potential and how this fits into ADX’s broader strategy to develop a cluster of shallow gas discoveries in Upper Austria.

ADX’s initial success at HOCH-1 complements its earlier drilling milestones, such as the HOCH-1 drilling reached 950m depth and ADX Energy Commences Drilling at HOCH-1, which set the stage for this promising gas encounter. The company’s ability to translate seismic predictions into tangible gas shows reinforces the value of its exploration model in a challenging European gas market.