ADX Energy is now drilling the Welchau-1 gas exploration well. Pic via Getty Images
Energy
Special Report: ADX Energy has spudded the potentially transformational Welchau-1 gas well in Upper Austria to test a giant prospect which could host up to 807 billion cubic feet equivalent of gas.
Welchau is hosted in relatively shallow reservoirs updip of the nearby Moln-1 gas discovery that intersected a gas column of at least 400m in 1989 and flowed 4 million cubic feet of gas per day during testing.
Success will be hugely significant for ADX Energy (ASX:ADX) as every single Bcf of gas – capable of powering more than 24,000 average homes for a year – which Europe can get from a local source is one Bcf less the energy-hungry region needs to source from expensive LNG.
Risks are also mitigated by partner MCF Energy, which has funded back costs and is funding 50% of the drill costs – to a cap of €5.1 million – to earn a 25% interest in the project.
Drilling of the Welchau-1 well in the ADX-AT-II exploration licence by the RED Drilling & Services E200 rig is now under way.
Operations are expected to take about 39 days in the success case.
“The board of ADX is very pleased to confirm the commencement of drilling at the Welchau-1 well,” ADX executive chairman Ian Tchacos said.
“The Welchau-1 well has attracted extensive media attention.
“Importantly, Austrian news reports are very positive due to a growing recognition of the importance of gas exploration in Austria to provide security of supply, economic benefit and lessen the dependence on Russian gas imports.”
This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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