ADX Energy (ASX:ADX) is advancing its shallow gas play in Upper Austria, with significant progress in its exploration license areas. The Austrian Ministry for Finance has formally amended the ADX-AT-I and ADX-AT-II exploration licenses, optimizing the company’s exposure to multiple low-risk, shallow gas targets near existing pipeline infrastructure. This strategic move, involving both relinquishment and addition of contiguous areas, maintains ADX’s total licensed area at 1022 km² while enhancing its prospect portfolio.
The company has identified four drill-ready prospects within its 100% owned acreage, with an additional two prospects in a 50% held area with MND Austria a.s. These prospects, exhibiting similar seismic responses to historical gas fields, have been matured using advanced seismic analysis, including AI and 3D seismic attribute techniques. ADX aims to drill the initial target within a cluster of three prospects by the end of 2025, focusing on the GOLD prospect, estimated to hold 6.4 Bcf of best-case prospective resources.
ADX has commenced farm-in discussions to secure funding for the drilling program, scheduled to begin in Q4 2025. The company plans to leverage its established partnership model with MND Austria a.s. and MCF Energy Austria GmbH to attract further investment, capitalizing on the high demand for gas in Europe and the strong economics of gas projects.
The development of the Shallow Gas Play has been underway for two years, with ADX deploying state-of-the-art seismic methods to identify extensions of a proven and commercially successful gas play. The company believes this presents an exceptional organic growth opportunity to rapidly build meaningful gas reserves, production, and infrastructure in Austria. Nearby historical discoveries have produced 220 Bcf to date through an extensive regional pipeline network, highlighting the potential of ADX’s acreage.
