ADX’s Austrian gas pipeline gathers pace as production rises 23%

Production climbs while revenue remains broadly flat

ADX Energy Ltd (ASX:ADX) increased average net production by 23% to 242 barrels of oil equivalent per day in the September quarter, driven by workovers and new behind-pipe perforations in Austria. The production gain did not translate into higher reported cash revenue: sales and other revenue was A$3.13 million, broadly unchanged from A$3.12 million in the previous quarter as the average Brent-linked oil price fell 7% to US$97 a barrel.

Vienna Basin oil and gas production rose to 176 BOEPD from 138 BOEPD, while the Anshof wells contributed 66 barrels of oil per day, up from 58. ADX said further interventions at the GA-93 and GA-87 wells are expected to add approximately 100 BOEPD during the December quarter, although that remains an estimate dependent on the workover results.

HOCH-1 moves towards a commerciality test

The most consequential exploration update remains HOCH-1 in Upper Austria. The well produced a combined 3.15 million cubic feet of gas per day from four tested zones over a 12-hour flow period, with the tested zones producing water-free gas during clean-up. The result extends the progress described in the HOCH-1 multi-zone test, but it is not yet a declaration of commercial production.

ADX plans to drill through a plug and test Zone 6 in the December quarter. Downhole pressure analysis indicates potential flow of 3.5 million cubic feet per day and a sand extent of at least 600 metres from the wellbore, while post-drill seismic suggests some gas sands may extend substantially further. ADX says the next test results, expected in mid-December, could provide greater confidence around the well’s commerciality and a possible tie-in.

GOLD-1 and PERG-1 build the next drilling queue

Preparation is also moving ahead for GOLD-1, a shallow gas prospect in the 73-square-kilometre GOLD Cluster Area. Empyrean Energy has agreed in principle to fund 20% of GOLD-1 drilling and testing costs, stated as EUR555,400, in exchange for a 10% economic interest once its earn-in obligations are met. The Energy Investment Agreement still needs to be finalised, with site construction scheduled to start in late October and drilling targeted by the end of 2026. The arrangement follows the previously reported Empyrean GOLD funding deal, but the farm-in remains conditional.

“The GOLD-1 prospect within the GOLD Cluster Area in the ADX-AT-II licence area.”

“Map showing the ADX Anshof Oil Field and the nearby, technically mature SGB and LIND appraisal prospects.”

Caption and image © ADX Energy Ltd. From “Quarterly Activities Report - September 2026”, 26 Oct 2026.

ADX has also secured land for PERG-1, a near-field oil prospect near the Anshof processing facility, and is progressing permitting and farm-out discussions. Drilling is planned for early 2027. Separately, the company’s 2027 Vienna Basin programme includes GA-96 and RAG-57, which carry base-case expected recoveries of 240,000 and 910,000 barrels of crude oil respectively. Those figures are prospective development outcomes rather than established production.

Cash position and Sicily expansion shape the risk profile

“ADX’ cash at the end of the quarter was A$ 2.2 million.”

ADX ended the quarter with A$2.3 million in unrestricted cash, excluding A$1.2 million held for bonds and guarantees. It raised A$3.58 million before costs through a July placement, while quarterly capital expenditure reached A$2.26 million, primarily funding HOCH-1 testing and work at Gaiselberg-93. The company therefore has several active programmes competing for a modest cash balance, even as farm-in funding may reduce the burden of future drilling.

In Italy, ADX submitted three Sicily Channel permit applications after an independent RISC review supported its methodology for a 619 billion cubic feet mean prospective gas resource estimate. The applications could expand ADX’s position to approximately 1,650 square kilometres, but remain subject to a competition period and environmental screening. The company also continues to dispute EUR4.2 million in Romanian work-program claims through litigation, adding a separate source of financial uncertainty to an otherwise expanding Austrian and Italian programme.