In the heart of gas-hungry Europe, ADX Energy is kicking off construction of its huge Welchau-1 gas well
Special Report: Gas play ADX Energy has kicked off construction of its prospective 134 MMBOE Welchau-1 gas well in preparation for drilling.
ADX Energy (ASX:ADX) says its Welchau-1 prospect – in the heart of Austria, where gas supplies are often constrained – has exceptional gas resource potential, yet it has a relatively shallow drill depth and is proximal to gas pipelines.
ADX estimates that Welchau has best technical prospective resources of 807 BCFE (134 MMBOE). Welchau is targeting the same reservoirs as the nearby Moln-1 well which tested condensate rich gas in 1989.
Elsewhere, the company has a 60% interest in the Anshof discovery area in a recently extended farm-in deal with MND Austria, a partnership that will aid in funding, accelerate further development and complete the tie-in of two planned appraisal and development wells.
ADX says it expects drilling operations at Welchau to start in late January 2024 using the RED Drilling & Services GmbH (RED) E-202 which was used to drill the Anshof-2 well.
It recently cleared a crucial environmental regulatory hurdle required to begin drilling operations for the de-risked well drilling, which is 50% funded via an agreement with MCF Energy, for which it will obtain a 20% interest.
Under the terms of the drilling permit, the Welchau-1 well can be drilled at any time from the start of October until the end of March next year, leaving the company with plenty of time to complete the initial stage of drilling and evaluation of the well.
ADX plans to resume appraisal and development drilling operations at Anshof using the RED E-202 drilling rig following drilling of the Welchau-1 gas exploration well.
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.