Just waiting. ADX will soon spud the Welchau-1 gas well. Pic via Getty Images
Energy
Special Report: ADX Energy is days away from spudding the Welchau-1 well to test a giant gas prospect in Upper Austria that will have little difficulty finding customers should it prove successful.
After all, the prospect has a best technical prospective resource of 807 billion cubic feet equivalent (Bcfe) of gas.
Welchau has several other things going for it as well, not least its location in the middle of Europe which will be more than happy to have a local source of energy over expensive imported LNG.
Firstly, it is hosted in relatively shallow reservoirs, meaning ADX Energy (ASX:ADX) won’t have to drill too deep to find out if there’s commercial gas present.
It is also updip (in the same reservoirs) from 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 – a fact which considerably de-risks the upcoming Welchau-1 exploration well.
Partner MCF Energy is also funding 50% of the drill costs – to a cap of €5.1m – in return for a 25% interest in the Welchau Investment Area, which serves to further reduce the company’s risk.
ADX now expects the RED Drilling & Services E202 drilling rig to become available on 14 February (rig released).
It will then take about six days to be moved and assembled on the Welchau drill site, allowing drilling to start on 20 February.
Drilling is expected to take about 39 days in the success case.
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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