ADX Energy varies Upper Austria licence to maximise value of shallow gas buffet

• ADX Energy secures licence amendments in Upper Austria to maximise number of low-risk, shallow gas targets in a proven gas trend
• Shallow gas play expected to be highly profitable due to low cost and proximity to open access pipeline infrastructure
• Farm-in partners sought to help fund drill program, which is expected to start in Q4 2025 targeting three gas prospects in the GOLD cluster

Special Report: ADX Energy has secured amendments to its Upper Austria licences maximising the number of low-risk, shallow gas targets near existing pipelines that have the potential to be highly profitable.

The company first sought the variation to its licences in February 2025 after its local team developed the potentially “transformational” shallow gas play over two years with assistance from international experts.

Work included an advanced seismic analysis that deployed a combination of AI, seismic attribute and AVO analysis to identify prospects that compare favourably with historical discoveries.

To date, ADX Energy (ASX:ADX) has identified 13 prospects, four of which are deemed to be “drill-ready” in its wholly-owned acreage while another two are within acreage it holds equally with MND Austria.

Another seven prospects within the wholly-owned acreage are being matured to drill-ready status.

The company plans to drill multiple low-cost wells in clusters to maximise production rates and minimise development costs through shared surface facilities.

“Our Vienna team, supported by international experts, has developed a transformational shallow gas play in Upper Austria by applying state of the art seismic methods to identify the extension of a proven and commercially successful gas play into ADX’s varied acreage position,” executive chairman Ian Tchacos said.

“ADX has matured four 100% equity owned low risk prospects for drilling with multiple follow up prospects being matured. Our goal is to drill the first target in a cluster of three prospects by the end of 2025.

“This shallow gas play has been two years in the making. It provides an exceptional organic growth opportunity where ADX can rapidly build meaningful gas reserves, production and infrastructure in the heart of gas hungry Austria.”

Shallow Gas Play

Variations of the ADX-AT-I and ADX-AT-II exploration licences have seen ADX relinquish some existing areas and add new contiguous areas with the total area under lease remaining the same at 1022km2.

This enables the upgrading of the prospect portfolio for the shallow gas play at no additional cost.

The play is proven by historical discoveries within the basin that have produced 220 billion cubic feet of gas to date through an extensive regional pipeline network.

Its six matured targets exhibit seismic responses similar to those observed in historical gas fields across the basin.

Drilling is expected to be low-cost while the open access pipeline infrastructure allows for quick development.

ADX expects to initially drill the GOLD cluster of wells in ADX-AT-II licence.

This consists of the GOLD, ZAUN and GRAB prospects that collectively host best case prospective resources of 11Bcf of gas with GOLD (6.4Bcf) being the likely first drill target.

Success at the GOLD cluster may lead to the drilling of the PIC prospect (5.1 Bcf) to the east.

Next steps

The company has started well planning, land acquisition and permitting.

It has also started discussions with potential farm-in partners to participate in its wholly-owned acreage.

“The previously developed partnership model already utilised for co-investment by MND Austria a.s. and MCF Energy Austria GmbH can also be utilised for direct investment by financial investors at a time when gas in Europe is a highly sought after commodity resulting in gas projects offering strong economics,” Tchacos.

This is aimed at securing funding for a drill program starting in Q4 2025.

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.