ADX Energy’s HOCH-1 well in Upper Austria has delivered a stable, water-free gas flow rate of 2.7 million cubic feet per day over an 11-hour test, confirming commercial potential from the first tested zone amid ongoing multi-interval testing.
- HOCH-1 well records 2.7 MMcf/d stable gas flow
- Up to eight gas reservoirs identified in Hall formations
- Pressure buildup testing underway to estimate reserves
- Multi-phase testing targets multiple sand intervals
- Commercial viability supported by strong European gas prices
First Zone Delivers Commercially Attractive Gas Flow
ADX Energy Ltd (ASX:ADX) has reported a stable, water-free gas flow rate averaging 2.7 million cubic feet per day (MMcf/d) from the first tested zone in its HOCH-1 shallow gas exploration well in Upper Austria. The 11-hour flow test on June 19 recorded a steady wellhead pressure of around 870 psi (60 bar), underpinning the commercial attractiveness of this initial Basin Floor Fan (BFF) sandstone interval at a depth of approximately 1465 metres.
The flow rate equates to about 450 barrels of oil equivalent per day (boepd), though ADX cautions this figure is conservative due to downhole pressure gauges restricting flow during testing. These gauges will be removed post-testing, potentially allowing for higher surface flow rates.
Multiple Gas Reservoirs and Phased Testing Program
HOCH-1, drilled and completed in mid-May 2026 within the ADX-AT-I licence where ADX holds a 50% interest and operatorship, has intersected up to eight gas-bearing reservoirs across the Hall and Base Hall formations. The company is conducting production testing in two phases: the first focusing on the upper Hall formation with up to three firm zones and a possible fourth contingent zone, followed by testing of the lower Base Hall channels.
The initial phase tested Zone 1, a BFF sand body interpreted to extend over a large area between 5 to 8 square kilometres, consistent with pre-drill seismic estimates. ADX is performing sequential perforation and flow tests on multiple sand intervals to assess inflow performance and reserves potential.
Pressure Buildup Test to Define Gas Reserves
Following the flow test, HOCH-1 was shut in to conduct a pressure buildup (PBU) test over approximately two weeks. This PBU will help estimate the connected gas volume of the Zone 1 sand body, providing a critical measure of reserves from a single interval before further testing of additional BFF and Base Hall reservoirs.
Executive Chairman Ian Tchacos highlighted the significance of the results, noting the water-free, pure methane gas flow aligns well with Europe's current high gas prices, approximately EUR 42 per MWh (US$14.10 per MMBtu), and growing demand for local clean gas. He emphasised that even relatively thin basin floor sands can yield commercial volumes when spread over a large depositional area, as evidenced by offset wells in the basin.
Next Steps in Testing and Commercialisation Decisions
The ongoing testing program aims to evaluate the reserves and production potential of multiple sand bodies encountered in HOCH-1. The results will inform ADX’s decision on whether to proceed with tying in the well for commercial production. Two additional shallow gas prospects in Upper Austria are fully permitted for drilling later this year, expanding the company’s exploration footprint.
ADX’s methodical approach, combining flow testing with pressure analysis across multiple intervals, seeks to build a comprehensive picture of the field’s commercial viability amid a favourable European gas market backdrop.
Bottom Line?
ADX’s HOCH-1 well has demonstrated promising early gas flow, but upcoming pressure data and multi-zone tests will be pivotal in confirming commercial reserves and guiding production decisions.
Questions in the middle?
- How will pressure buildup results refine the gas reserve estimates for HOCH-1’s Zone 1?
- What production profiles might emerge from testing the additional seven gas-bearing intervals?
- How will evolving European gas prices impact the economics of potential commercialisation?