ADX Energy Starts Austrian Gas Drilling at HOCH-1 Prospect

The start of ADX Energy Austrian gas drilling operations marks a significant milestone for the company's 2026 exploration campaign. ADX Energy (ASX:ADX) has commenced drilling operations at its HOCH-1 shallow gas exploration well in Upper Austria, marking the beginning of what could be a transformative year for the company. The drilling campaign began on 16 April 2026 at 9:00 PM CET using the MND Drilling & Services MD-150 rig, with operations proceeding smoothly as of 19 April at 6:00 AM CET.

The HOCH-1 well represents the first of three permitted shallow gas prospects scheduled for drilling throughout 2026, targeting highly productive shallow gas reservoirs within the Miocene-aged Hall formation. According to the company, similar Hall formation wells have recorded impressive initial production rates of up to 9 mmscf/d, approximately equivalent to 1,500 barrels of oil per day.

"HOCH-1 is the first of three shallow gas prospects permitted for drilling in 2026" – ADX Energy Management

Strong Progress in Early Drilling Operations

As of the latest operational update, drilling was advancing in 8½ inch hole at 96 metres measured depth. The well operations are following a structured plan designed to reach the target Hall formation reservoir at approximately 1,075 metres true vertical depth.

The complete drilling programme includes:

• Total Depth: Approximately 1,430 metres measured depth (1,145 metres true vertical depth)
• Drilling Timeline: Expected 14 days to complete drilling and evaluation
• Current Phase: Drilling ahead to 430 metres before running and cementing 7-inch casing
• Target Formation: Hall formation reservoir at approximately 1,075 metres true vertical depth

ADX operates the prospect with a 50% economic interest within the ADX-AT-I exploration licence. The technical execution appears well-planned, with the drilling rig making steady progress according to operational schedules.

Understanding Prospective Resources: The Investment Framework

Prospective Resources represent estimated quantities of petroleum that may potentially be recovered from undiscovered accumulations through future development projects. These estimates carry both discovery risk and development risk, requiring successful exploration and appraisal to determine commercial viability.

For investors, prospective resources indicate the scale of opportunity rather than confirmed reserves. Furthermore, ADX has applied a probabilistic approach providing three scenarios for the HOCH prospect:

The Mean Prospective Resource potential of 8.0 BCF and High Case scenario of 17.3 BCF demonstrate substantial upside potential if exploration proves successful. This scale becomes particularly relevant given the proximity to existing pipeline infrastructure and current European gas pricing dynamics.

Strategic Austrian Gas Portfolio Development

The start of ADX Energy Austrian gas drilling represents the opening phase of the company's broader Austrian shallow gas strategy. ADX has identified and received permits for three prospects scheduled for 2026 drilling:

Immediate Drilling Programme

1. HOCH-1 (Currently drilling) – 8.0 BCF Mean Prospective Resource
2. GOLD-1 (Eastern ADX-AT-II licence) – Future drilling target
3. SCHOE-1 (South of HOCH-1) – 6.4 BCF Mean Prospective Resource

Beyond these immediate targets, ADX has generated up to ten shallow gas prospects across its ADX-AT-I and ADX-AT-II exploration licences. This creates a multi-year drilling inventory with potential for cluster development using shared infrastructure.

Technical Advantages Supporting Exploration Success

The Hall formation targets offer several compelling geological and operational characteristics that enhance the likelihood of successful outcomes:

Reservoir Quality:

• Analogous wells have achieved 9 mmscf/d initial production rates
• Expected high-quality biogenic gas composition (99% methane)
• Shallow drilling depths reducing operational costs and complexity

Geological Support:

• 3D seismic data with amplitude and AVO analysis supporting prospect definition
• Seismic responses analogous to successful gas wells in basin floor Hall formation sandstones
• Stratigraphic pinch-out trap with 3-way dip closure providing multiple trapping mechanisms

Infrastructure Advantages:

• 2km distance to Upper Austrian pipeline grid
• Open access pipeline connections available
• Potential for shared processing facilities across multiple discoveries

Economic Framework in European Gas Market Context

The timing of ADX's Austrian gas programme aligns with favourable European energy market dynamics. According to the company's economic assessment, an 8 BCF discovery would generate in excess of EUR 120 million in gross revenue at current gas pricing levels.

Key Economic Drivers

Market Position:

• High European gas pricing environment supporting robust project economics
• Strategic positioning in domestic European gas production

Development Efficiency:

• Shallow drilling depths enabling cost-effective development
• Proximity to infrastructure reducing capital requirements and development timelines
• Potential cluster development across multiple discoveries optimising shared facilities

Success Case Development Pathway:
A successful HOCH-1 well will be cased and suspended for production testing to determine reserves potential. The strategic positioning allows for potential tie-in to the Upper Austrian pipeline grid, with processing plant options at either the HOCH or SCHOE drill sites enabling cluster development approaches.

Investment Positioning and Near-Term Catalysts

ADX Energy provides investors with direct exposure to European gas markets through a technically robust exploration programme targeting proven reservoir concepts. However, the investment thesis rests on several key foundations:

Immediate Catalysts

• HOCH-1 drilling results expected within 14 days from commencement
• Two additional wells planned for completion in 2026
• Production testing timeline for successful discoveries providing rapid validation

Operational Advantages

• Operator status with 50% economic interest ensuring operational control
• Proven reservoir concept supported by analogous production data from nearby wells
• Multi-prospect inventory supporting sustained drilling activity beyond 2026

Market Context

• High European gas pricing supporting strong project economics
• Increasing focus on domestic European gas resources enhancing strategic value
• Infrastructure proximity reducing development risk and accelerating potential production timelines

Technical Risk Mitigation and Geological Confidence

The HOCH prospect benefits from substantial technical de-risking through comprehensive geological and geophysical analysis. 3D seismic data reveals amplitude responses and Class 3 AVO characteristics that define both the stratigraphic pinch-out trap and provide direct hydrocarbon indications.

Geological Validation

Several nearby wells have encountered shaled-out sandstones and pinch-out zones consistent with seismic responses analogous to successful gas wells in Hall formation sandstones. The 3D seismic responses suggest potential connectivity between the HOCH-1 target area and the northwestern portion of the high-case prospect area.

Development Flexibility

The geological interpretation indicates that reduced reservoir connectivity between southeastern and northwestern prospect areas would maintain resource upside potential. Nevertheless, this might require additional wells for optimal drainage, providing development optionality depending on initial drilling results.

What Makes This Austrian Gas Campaign Significant?

The start of ADX Energy Austrian gas drilling has positioned the company within the European shallow gas exploration sector with a technically de-risked programme targeting high-productivity reservoirs. The combination of proven reservoir concepts, advanced seismic definition, and favourable market conditions creates a compelling near-term catalyst opportunity.

The 14-day drilling timeline for HOCH-1 results provides immediate newsflow for investors, while the broader three-well programme offers multiple value creation opportunities throughout 2026. Successful drilling results at HOCH-1 could validate the geological model across ten identified prospects, potentially establishing ADX as a significant European gas producer.

Investment Considerations

With high European gas pricing supporting robust project economics and infrastructure proximity enabling rapid development scenarios, successful exploration results could deliver substantial value creation. The Mean Prospective Resource of 8.0 BCF at HOCH-1, representing 4.0 BCF net to ADX's 50% interest, provides material upside potential in the context of current European gas valuations.

Key Investment Takeaway: ADX Energy has commenced a technically robust shallow gas drilling programme in Austria targeting substantial resource potential. The HOCH-1 well results, expected within 14 days, represent the first of three 2026 prospects targeting 99% methane gas reservoirs with proven production rates of up to 9 mmscf/d. Success could validate a multi-prospect drilling inventory positioned for the high-priced European gas market.

Consequently, the start of ADX Energy Austrian gas drilling campaign represents more than just exploration activity. It signals the potential beginning of a significant European gas production story, with immediate catalysts and substantial long-term resource potential across a multi-prospect drilling inventory.

Could ADX Energy's Austrian Gas Campaign Reshape Your Portfolio?

With drilling results expected within 14 days and two additional high-potential prospects scheduled for 2026, ADX Energy's Austrian gas programme offers investors direct exposure to the European energy market through a technically robust exploration strategy. The combination of proven reservoir concepts, substantial resource potential, and favourable market conditions creates compelling near-term catalysts that could significantly impact share performance. To explore ADX Energy's full project portfolio, operational updates, and investment opportunity in detail, visit adx-energy.com and discover how this Austrian gas campaign could fit within your investment strategy.