ADX Energy Hits Gas at HOCH-1, Wireline Logging Next to Test Commerciality

ADX Energy (ASX: ADX) encountered gas-filled sands at its HOCH-1 shallow gas exploration well in Upper Austria. The Miocene Hall formation intersection at about 1,350 metres measured depth supports the pre-drill geological model, the company said.

The gas show is biogenic, 100% methane, based on drill cuttings, mud logs, compositional gas analysis and high total gas concentrations, ADX said.

HOCH-1 is the first well in a three-well shallow gas campaign in Upper Austria. ADX holds a 50% economic interest.

HOCH-1: Gas Show and Seismic Validation

The company said Hall reservoir intersections correlate “almost exactly” with pre-drill 3D seismic predictions. The structural model is holding, ADX said. Reservoir quality, net pay and commercial deliverability depend on the upcoming wireline logging and production testing.

The well was still drilling ahead in a 6 1/8 inch hole at MD 1,367m. ADX expects to deepen it to at least MD 1,550m because of additional gas shows.

ADX has previously disclosed mean prospective resources of 8.0 BCF and a high case of 17.3 BCF for the HOCH prospect. The well originally targeted about 1,430m MD and sits roughly 2 kilometres from pipeline infrastructure. That makes it a candidate for cluster development with nearby prospects, including SCHOEN.

The shallow gas concept is designed for shorter-cycle, near-infrastructure opportunities, separate from ADX's producing Austrian assets in the Vienna Basin Fields and Anshof Field, and from its offshore Italian permit held through Audax Energy S.r.l.

Wireline Logging and the Commercial Question

The next technical milestone is wireline logging, scheduled for 7 May 2026. ADX said the logging program will confirm net reservoir thickness, reservoir quality and gas saturation. A quick-look analysis is expected shortly afterwards.

If those results support the drilling observations, the company plans to case and complete the well for production testing. That testing will determine deliverability and reserves potential.

ADX's experience at Welchau-1, another Austrian well, is instructive. That well recovered hydrocarbons during testing did not achieve stable-flow inflow, ADX said. Hydrocarbon presence alone does not settle the commercial question.

Execution and regulatory timing matter. ADX recently dealt with mechanical downtime in its Austrian production base and court-related interruptions to Welchau environmental clearances. Those events do not directly affect HOCH-1. They are a reminder of the operational chain between a positive drilling outcome and cash flow.

ADX's Austrian production averaged about 248 BOEPD net in 2025, up from 211 BOEPD in 2024. Average net production was 200 BOEPD and sales revenue cash received reached A$2.1 million. That operating base provides some funding for the exploration program, though the company continues to rely on external capital and partner structures.

Today's announcement gives ADX a constructive early drilling result at HOCH-1. The gas show is real, and the seismic correlation supports the pre-drill model. The release stops short of proving commerciality. The next read-through comes from wireline logging, followed by any casing, completion and production testing decisions. Funding and execution risk remain part of the wider company story.

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