ADX Energy Locks in Farm-In Partner to Co-Fund GOLD-1 Austrian Gas Well
Key Takeaways
- ADX Energy's Austrian subsidiary has signed a Binding Heads of Agreement with AIM-listed Empyrean Energy plc, securing EUR 555,400 to fund 20% of GOLD-1 drilling costs in exchange for a 10% economic interest in the GOLD Cluster Area.
- Empyrean has paid a non-refundable EUR 50,000 option fee to secure exclusivity while the Energy Investment Agreement is finalised, with an Option Expiry date of 16 October 2026.
- GOLD-1 targets 8.3 BCF P(mean) prospective resources at 100% economic interest and is scheduled to spud in Q4 2026, making it the second well in ADX's active shallow gas drilling program.
- HOCH-1, the first well in the same shallow gas program, is already recording 2.8 MMcf/d during production testing — providing a live read on the reservoir system GOLD-1 will target.
- Any unused portion of Empyrean's earn-in obligation will roll into funding its share of a subsequent well within the GOLD Cluster Area, reinforcing the multi-well upside embedded in the arrangement.
Empyrean signs binding agreement to co-fund GOLD-1 well
ADX Energy Ltd has secured an industry partner to help fund its next shallow gas well in Upper Austria. ADX VIE GmbH, ADX’s 100%-owned Austrian subsidiary, has entered into a Binding Heads of Agreement (BHOA) with AIM-listed Empyrean Energy plc covering the GOLD Cluster Area within the ADX-AT-II licence.
Under the deal, Empyrean will fund 20% of GOLD-1 drilling and testing costs — EUR 555,400 — to earn a 10% economic interest in the GOLD Cluster Area. To secure exclusivity while both parties finalise the Energy Investment Agreement (EIA) documentation, Empyrean will pay a non-refundable option fee of EUR 50,000, with the Option Expiry set for 16 October 2026. GOLD-1 is targeted to spud in Q4 2026.
This is a binding commercial agreement, not a letter of intent.
| Term | Detail |
|---|---|
| Option Fee | EUR 50,000 (non-refundable) |
| Earn-in Obligation | EUR 555,400 (20% of GOLD-1 well cost cap) |
| Well Cost Cap | EUR 2,777,000 (drilling, completion and testing) |
| Interest Earned | 10% economic interest in GOLD Cluster Area |
| Option Expiry | 16 October 2026 |
Upon satisfaction of its Earn-in Obligation, Empyrean will hold a 10% participation in the partnership formed for hydrocarbon exploration, development and production in the GOLD Cluster Area, and will be responsible for 10% of ongoing partnership costs thereafter.
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GOLD-1 in context — ADX’s shallow gas drilling program
GOLD-1 is the second well in ADX VIE’s shallow gas drilling program in Upper Austria, following HOCH-1, which was undergoing production testing at the time of this announcement. The GOLD Cluster Area is not a single-well proposition — it is a cluster of prospects, meaning the interest Empyrean is buying into carries multi-well upside.
HOCH-1 gas flow results from Upper Austria have already demonstrated meaningful reservoir productivity, with the well recording 2.8 MMcf/d, providing an early read on the performance of the same shallow gas system GOLD-1 will target.
Any unused portion of Empyrean’s EUR 555,400 Earn-in Obligation will be applied to fund its share of a subsequent well within the GOLD Cluster Area, reinforcing the multi-well nature of the arrangement.
The three wells in ADX’s current shallow gas program are:
- HOCH-1 — Gas discovery well; currently undergoing production testing (mid-June at 50% economic interest)
- GOLD-1 — Shallow gas well; 8.3 BCF P(mean) prospective resources at 100% economic interest; spud targeted Q4 2026
- SCHOE-1 — Shallow gas well; 6.3 BCF P(mean) prospective resources at 50% economic interest
Note: Prospective Resources are undiscovered quantities of petroleum. These estimates carry both a risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. Prospective Resources reporting date: 3 March 2026.
What is a farm-in, and why does it matter for ADX investors?
A farm-in (or earn-in) arrangement is a structure where a third party funds a defined share of drilling costs in exchange for a percentage interest in the asset. The party funding the costs “earns in” to the project rather than purchasing the interest outright.
For ADX, the practical effect is straightforward: the company reduces its net cash exposure on the GOLD-1 well while retaining the majority economic interest and operatorship. Empyrean carries 20% of the drilling cost; ADX carries the balance, but keeps control of the programme.
The fact that Empyrean is listed on London’s AIM market also matters. A publicly listed counterparty carries its own disclosure obligations and regulatory accountability, which adds a layer of credibility to the transaction compared with an undisclosed private arrangement.
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Near-term catalysts and what comes next
The immediate pathway is clearly sequenced. EIA documentation is expected to be finalised by 16 October 2026, at which point Empyrean’s EUR 555,400 Earn-in Obligation is triggered. GOLD-1 is then targeted to spud in Q4 2026.
In parallel, HOCH-1 production testing remains ongoing. Those results will shape investor sentiment heading into GOLD-1 drilling, providing a read on reservoir productivity from the first well in the same shallow gas program.
ADX has confirmed that further updates on the finalisation of the Empyrean GOLD Cluster Area partnership transaction will be provided as they become available.
The broader picture for ADX investors is one of systematic capital management. By attracting an industry partner to co-fund GOLD-1, ADX preserves its balance sheet while advancing multiple drill targets toward potential production in its Upper Austrian shallow gas portfolio.
Ready to Learn More About ADX Energy’s GOLD Cluster Farm-In Deal?
ADX Energy has secured a binding agreement with AIM-listed Empyrean Energy to co-fund the GOLD-1 shallow gas well in Upper Austria, reducing ADX’s net cash exposure while retaining majority interest and operatorship across a multi-well cluster targeting 8.3 BCF P(mean) prospective resources. With HOCH-1 already recording 2.8 MMcf/d during production testing, the same shallow gas system GOLD-1 will target has already demonstrated meaningful reservoir productivity.
For a deeper look at ADX Energy’s Austrian gas programme, upcoming catalysts, and the full terms of the Empyrean earn-in structure, explore the ADX Energy investor profile on Discovery Alert to stay across developments as GOLD-1 moves toward its Q4 2026 spud target.