ADX Energy (ASX:ADX) has resumed testing operations at its Welchau-1 well in Upper Austria, following a favourable ruling by the State Administrative Court.
The project, which was halted in January 2025 due to environmental objections, is now cleared to proceed with the appraisal of the Reifling Formation, the shallowest of four fractured carbonate reservoirs identified at the site.
The upcoming phase of operations centres on acid stimulation, a standard industry practice designed to repair wellbore damage sustained during drilling and enhance reservoir productivity.
This technical intervention is critical for determining the flow characteristics and hydrocarbon content of the Reifling Formation. Geologists interpret this specific zone to be part of a "light oil" accumulation located updip from the current wellbore.
Data from the initial drilling phase at Welchau-1 is highly encouraging, revealing a 450-metre hydrocarbon-bearing interval.
The presence of a significant petroleum system has been further supported by the recovery of light oil and evidence of pressure continuity with the nearby Molln-1 gas-condensate discovery.
Looking ahead, ADX Energy views Welchau as a strategically vital asset with multiple appraisal pathways.
Beyond the current tests, the company is weighing options to either sidetrack the well to target updip oil or deepen it to explore deeper gas-condensate targets.
At the time of reporting, ADX Energy's share price was $0.032.