ADX Energy Ltd (ASX:ADX), an Australian energy company focused on oil and gas exploration and production, today announced an updated prospective resources assessment for its Welchau gas project. The revised assessment incorporates data from the Welchau 1 well, including updip oil resources and gas resources located below the well and updip of the Molln-1 gas condensate discovery. The company’s ADX-AT-II license in Upper Austria houses the Welchau 1 well.
The updated assessment indicates a P(mean) prospective resource of 387 billion cubic feet (BCF) of gas and 31 million barrels (MMBBL) of light oil and condensate. The Welchau 1 well encountered 450 metres of gas shows across four primary fractured carbonate reservoirs. Testing of the Reifling Formation also revealed light oil with similar API gravity to oil recovered from the deeper Steinalm Formation, further suggesting a live oil accumulation at the crest of the Welchau structure.
The company believes a potentially significant light oil accumulation has been encountered at Welchau 1, although the original gas-condensate target has yet to be reached. Data indicates continuity between Welchau 1 and the downdip Molln 1 discovery. ADX Energy is currently undertaking compositional analysis of oil and gas samples recovered during the Reifling Formation test and is monitoring pressure build up and fluid inflow.
ADX Executive Chairman Ian Tchacos commented that the results confirm a substantial light oil accumulation at the well. He added that deepening the Welchau-1 well by approximately 600 metres could economically access a large gas resource, strategically important for Austria’s gas supply. Further updates on drilling plans and ongoing sample analysis will be provided as available.
