Mining

ADX Energy announces positive update on Welchau-1 well

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ADX Energy (ASX:ADX) has released a significant update concerning the resources potential and planned testing program for the Welchau-1 discovery well in the ADX-AT-II exploration licence area.

ADX operates and holds a 75% economic interest in the Welchau exploration area.

The Welchau-1 well targeted formations similar to those in the downdip Molln-1 discovery, which tested condensate-rich gas between 3 to 4 MMSCFPD in 1989.

The well intersected three primary carbonate reservoirs and was suspended on March 28 due to environmental permit conditions that limit drilling and testing operations to the Austrian winter months.

Data collected from Welchau-1 includes hydrocarbon shows, wellbore inflows during drilling, formation cuttings, petrophysical borehole log data, and formation fluid samples.

Analysis suggests that the well's formations have considerable potential.

The planned testing program aims to confirm hydrocarbon characteristics, well productivity, and recoverable resource volumes, set to begin on Oct. 15.

"ADX believes it is most likely that Welchau is a high API hydrocarbon liquid (or light oil) and associated gas discovery rather than a liquids-rich gas discovery as was predicted before drilling," stated Ian Tchacos, Executive Chairman of ADX Energy.

 ADX's analysis of Well data indicates a potential range of 12 MMBOE to 217 MMBOE of unrisked prospective resources.

Following testing, the resource estimates will be revised, and ADX will provide updates on further exploration potential, including the deepening of the Welchau-1 well and nearby prospects such as the Rossberg lead.

At the time of reporting, ADX Energy’s share price was $0.10.

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