ADX Energy Ltd (ASX:ADX), an oil and gas exploration and development company with projects in Europe and Africa, has announced a significant update regarding its GOLD-1 shallow gas well in Upper Austria. The company has secured a drilling rig from MND Drilling & Services, with mobilisation slated for 4 January 2027, signalling the imminent commencement of its exploration program. Drill site construction is well underway and is expected to reach completion by the end of November 2026, paving the way for the planned 14-day drilling operation.
The GOLD-1 exploration well is situated within the GOLD Cluster Area of the ADX-AT-II exploration licence, where ADX currently holds a 100% economic interest as the operator. The well is designed to target highly productive shallow gas reservoirs found within Miocene aged sandstones of the Hall formation, described as a basin floor submarine fan. The company anticipates a high chance of technical success for the well, which targets two out of three reservoirs of a deltaic system, specifically the “A” and “C” reservoirs, supported by seismic amplitude diagnostics indicative of gas.
Financially, the GOLD prospect boasts a Mean Prospective Resource potential of 8.3 BCF, as previously announced on 9 November 2026. Empyrean Energy plc is set to earn a 10% economic interest in the GOLD Cluster Area by funding 20% of the GOLD-1 well’s drilling, testing, and completion costs. Additionally, several other companies are reportedly in various stages of due diligence to potentially earn an economic interest through similar funding arrangements. ADX highlights that the shallow drill depth and proximity to existing pipeline infrastructure are expected to contribute to excellent economics and a rapid development cycle, with an 8 BCF discovery potentially generating approximately EUR 220 million in sales revenue at current European gas prices.
