ADX Energy Confirms Strong Reservoir Potential at HOCH-1 with 3.5 MMCFPD Flow Estimate
ADX Energy’s HOCH-1 well in Upper Austria shows promising gas flow and reservoir extent, with further multi-zone testing set to resume after delays.
- Initial 2.7 MMCFPD gas flow confirms reservoir quality
- Pressure build-up suggests 3.5 MMCFPD flow potential
- Two-phase testing program targets multiple Hall and Hall Channel zones
- New 3D seismic mapping reveals extensive sand bodies and stratigraphic traps
- Testing delayed by licensing but set to resume late August
Strong Initial Flow Validates Reservoir Quality
ADX Energy Ltd (ASX:ADX) has reported encouraging results from its HOCH-1 shallow gas exploration well in Upper Austria, with initial testing delivering a stable, water-free gas flow of 2.7 million cubic feet per day (MMCFPD), equivalent to 450 barrels of oil equivalent per day (BOEPD). This flow was sustained over an 11-hour test period, reinforcing the reservoir’s favourable characteristics within the Hall formation.
Pressure build-up analysis following the test indicates the zone’s flow potential could extend to 3.5 MMCFPD (580 BOEPD), supported by a sand body extent of at least 600 metres from the wellbore. These metrics suggest excellent reservoir productivity and lateral continuity, critical for commercial viability in the region.
Two-Phase Testing Program Targets Multiple Gas Zones
The HOCH-1 testing program is structured in two phases. Phase 1, already underway, focuses on two zones in the upper Hall formation and one in the Hall Channel formation. The remaining Phase 1 testing, scheduled to resume in the week commencing 24 August, will perforate and produce a Hall sand and a Hall Channel sand together before a shut-in and pressure build-up phase.
Phase 2 will concentrate on deeper Hall Channel sand zones, requiring a workover rig to drill out a cement plug to access these intervals. The planned multi-zone approach aims to delineate reservoir extents and productivity across a complex stratigraphic setting, enhancing the prospect’s resource confidence.
3D Seismic Mapping Reveals Large Lateral Extensions
Recent reprocessed pre-stacked depth migrated (PSDM) 3D seismic data has significantly improved reservoir understanding. The Hall Channel sands intersected in HOCH-1 correlate with wells up to 2.5 to 3 kilometres away, indicating extensive lateral sand bodies and stratigraphic traps.
This mapping supports the presence of elongated lens-shaped channel reservoirs with the potential for substantial gas accumulations. Historic wells nearby have recovered significant gas volumes, including one east of HOCH-1 that produced 10 billion cubic feet (BCF) from channel sands, underscoring the prospectivity of the area.
Operational Delays and Next Steps
Testing was briefly delayed due to logistical challenges in obtaining an explosive license for perforation, but ADX has confirmed that further testing will recommence in late August. The company holds a 50% interest and operates the HOCH prospect under the ADX-AT-I exploration licence.
ADX Executive Chairman Ian Tchacos highlighted the encouraging nature of the results to date, noting the excellent productivity and lateral extent of the Hall formation sands and the prospective nature of the deeper Hall Channel sands yet to be tested. The company anticipates completing Phase 1 testing soon, followed by Phase 2 to further appraise the deeper zones.
Bottom Line?
ADX’s HOCH-1 well testing advances with strong early flow rates and seismic data pointing to significant reservoir potential, but upcoming results from multi-zone testing will be pivotal for commercial assessment.
Questions in the middle?
- Will Phase 1 multi-zone testing confirm combined productivity and reservoir connectivity?
- How will Phase 2 deeper Hall Channel testing impact overall resource estimates?
- What timeline can be expected for operational progress given previous licensing delays?
