ADX Energy’s HOCH-1 shallow gas well in Upper Austria has produced a combined gas flow of 3.15 million cubic feet per day from multiple zones, reinforcing the well’s commercial potential amid Europe’s gas supply crunch.
- HOCH-1 delivers 3.15 MMCFPD from four combined zones
- Phase 1 testing confirms water-free gas and strong reservoir productivity
- 3D seismic mapping reveals large lateral extensions in gas sands
- Phase 2 to target deeper zones requiring workover rig
- European gas shortages heighten strategic value of Austrian gas
Multi-Zone Gas Flow Confirms HOCH-1 Potential
ADX Energy Ltd (ASX:ADX) has reported a significant milestone in its Upper Austria gas exploration program, with the HOCH-1 well producing a combined gas flow of 3.15 million cubic feet per day (MMCFPD) or 548 barrels of oil equivalent per day (BOEPD) over a 12-hour period. This flow was achieved by comingling gas from four zones (2, 3, 4, and 5) within the Hall basin floor fan and Base Hall Channel formations during the second Phase 1 test.
The well was subsequently shut in to record pressure buildup data critical for reserves estimation. Earlier in June, a single-zone test (Zone 2) had yielded a stable 2.7 MMCFPD flow, with pressure analysis indicating a potential flow capacity of 3.5 MMCFPD and a sand extent of at least 600 metres from the borehole. These results underscore the reservoir’s strong productivity and the presence of water-free gas, a positive indicator for commercial viability.
Seismic Mapping Highlights Large Gas Reservoir Extensions
Post-drill 3D seismic reprocessing and well correlation have identified substantial lateral extensions of the gas-bearing sand bodies, particularly Zones 3 and 6. The Hall Channel sands intersected deeper in the well are mapped to extend at least 2.5 kilometres southeast, linking to previously drilled wells. This stratigraphic trap configuration suggests a potentially significant gas resource beyond the immediate well area.
Water-free gas flows from the shallower Hall Channel formations (Zones 4 and 5) bolster confidence that the deeper zones (6 to 8), which remain untested, are also gas-filled and could contribute materially to reserves. The planned Phase 2 testing will focus on these deeper zones, though access requires a workover rig to drill out a cement plug, with timing yet to be confirmed.
Strategic Timing Amid European Gas Supply Shortages
Executive Chairman Ian Tchacos highlighted the strategic importance of the HOCH-1 results against the backdrop of ongoing gas shortages in Europe and the continent’s heavy reliance on imports. At the time of the announcement, European TTF gas prices stood at EUR 69 per megawatt-hour, equating to approximately US$23 per MMBTU, or an oil price equivalent of US$138 per barrel. This pricing environment enhances the commercial attractiveness of locally sourced gas from Austria.
ADX operates the HOCH prospect with a 50% interest and has two additional shallow gas prospects permitted for drilling in 2026. The company anticipates reporting pressure buildup results from the current test phase within weeks, followed by the commencement of Phase 2 testing targeting the deeper Hall Channel zones.
Bottom Line?
Upcoming pressure buildup results and Phase 2 testing will be pivotal in defining HOCH-1’s commercial reserves and potential contribution to Europe’s energy security.
Questions in the middle?
- How will the pressure buildup analysis refine reserves estimates for HOCH-1?
- What is the timeline and availability outlook for the required workover rig for Phase 2 testing?
- Could the lateral extension of gas sands translate into a larger development project beyond HOCH-1?