ADX Energy Ltd (ASX:ADX), an oil and gas exploration and production company with a focus on European and Australian assets, has reported a significant update from its Hochfeld-1 (HOCH-1) shallow gas exploration well in Upper Austria. The company announced that three additional zones in the well have flowed water-free gas, leading to an improved commingled production rate during recent testing. This positive development follows earlier successful tests at the site.
The latest Phase 1 testing saw Zones 2, 3, 4, and 5 commingled, achieving an average gas flow rate of 3.15 million cubic feet per day (MMCFPD), equivalent to 548 barrels of oil equivalent per day (BOEPD), over a 12-hour period. This builds on the initial Phase 1 test of Zone 2, which previously yielded a stable flow rate of 2.7 MMCFPD (450 BOEPD). The well has now been shut in, with downhole gauges recording pressure buildup data for reserves determination. ADX previously identified up to eight biogenic gas reservoirs within the Hall and Base Hall Channel formations.
All zones tested to date in Phase 1 have demonstrated positive, water-free gas flows, bolstering confidence in the well’s future commerciality. Post-drill 3D seismic mapping suggests a substantial lateral extension of several sand bodies, particularly for Zones 3 and 6. This mapping, combined with the successful testing of Hall Channel formations (Zones 4 and 5), provides confidence that deeper, yet to be tested zones (6 to 8) are also gas-filled.
ADX Executive Chairman, Mr Ian Tchacos, noted that these positive flow results are very encouraging for determining a commercial reserve and highlight the strategic importance of European-sourced gas amidst ongoing regional shortages. Phase 2 testing, targeting at least two deeper Hall Channel zones, is planned following this pressure buildup phase, with a workover rig required to access these deeper sections.
