ADX Energy Builds 1,650 km² Sicily Gas Play With Third Permit Application
Key Takeaways
- ADX Energy has submitted a third exploration permit application (d 370 C.R-.AU) covering 517 km² in the Sicily Channel, published in Italy's Official Hydrocarbon Bulletin in August 2026.
- Combined with the existing C.R 150.AU Permit (346 km²) and two previously announced applications, ADX now holds approximately 1,650 km² across four permits in the Terravecchia biogenic gas play.
- Independent technical validation from RISC Advisory, published 6 July 2026, confirmed the Terravecchia Formation as a recognised gas play supported by offset well gas shows and producing analogues including the Lippone-Mazara field and the offshore Argo-Cassiopea developments.
- The near-term process milestones are the three-month competition window (during which rival operators may apply for the same acreage) and the subsequent 90-day Environmental Impact Assessment submission requirement — no drilling commitment has been made yet.
- ADX holds a 100% interest in the existing C.R 150.AU Permit, retaining full discovery upside without joint venture dilution, while running a parallel Austrian gas drilling program at the HOCH-1 prospect.
ADX Energy has submitted a third exploration permit application in the Sicily Channel, offshore Italy, continuing a methodical expansion of its gas acreage position in the region. The new application, named d 370 C.R-.AU and covering 517 km², was published in the Official Hydrocarbon Bulletin (BUIG) in August 2026 and follows two previously announced applications (d 368 C.R-.AU and d 369 C.R-.AU, announced 19 August 2026).
Combined with the company’s existing C.R 150.AU Exploration Permit (346 km²), the three new applications bring the total footprint across all four permits to approximately 1,650 km². ADX holds a 100% interest in the existing C.R 150.AU Permit.
What’s driving the expansion: the Terravecchia gas play explained
The strategic logic behind the land position centres on the Terravecchia Formation, a Miocene-aged biogenic gas play in the Sicily Channel. Biogenic gas refers to naturally occurring gas produced by the decomposition of organic material, as distinct from gas generated by heat and pressure deep in the Earth’s crust.
An independent review by RISC Advisory Pty Ltd, published in an ASX release dated 6 July 2026, confirmed the Terravecchia Formation represents a valid gas play in this area. RISC based its assessment on regional geology, offset wells recording gas shows in surrounding areas, and the presence of analogous fields nearby, including the onshore Lippone-Mazara Terravecchia gas field and the offshore Pliocene Argo-Cassiopea developments.
RISC also noted that historic offset wells surrounding the ADX permit frequently recorded elevated mud gas shows in Terravecchia sandstones during drilling. Multiple producing analogues in the vicinity de-risk the play concept and give the acreage position a technically grounded foundation. For investors, third-party independent validation from RISC is a meaningful signal: this is not speculative land-banking but acreage assembled around a recognised geological play in a known European producing basin.
The RISC Advisory review underpinning the acreage expansion is the same independent assessment that quantified the 1,265 BCF Sicily Channel gas play across the broader Terravecchia position, giving context to the scale ADX is targeting through these sequential permit applications.
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Application process and timeline
The same process applies to the third application as to the two previously announced permits. The key steps are:
- For a period of three months from publication in the Official Journal of the European Union, other operators may submit competing applications for the same mining areas.
- If no competing applications are submitted, the opinion of two bodies within the Ministry of the Environment and Energy Security is required: (a) the UNMIG Section, a regional technical office overseeing hydrocarbon exploration and production activities; and (b) the CIRM, the Commission for Hydrocarbons and Mineral Resources, a technical advisory body operating in the exploration and production field.
- Within 90 days of the competition period closing, Audax Energy must submit a request for an Environmental Impact Assessment (EIA) to the competent Authority and notify the Ministry.
- If competing applications are received, the Ministry selects between applicants after consulting the CIRM, based on criteria including the validity and novelty of exploration objectives, completeness of the proposed work programme, planned timelines and methods, and the technical competency and financial capacity of the applicants.
ADX has confirmed it will provide further updates on all three Sicily Channel applications as results become available.
Key permit application summary
| Permit Name | Status | Area (km²) | Announcement Date | Notes |
|---|---|---|---|---|
| C.R 150.AU | Existing permit | 346 km² | — | 100% ADX interest |
| d 368 C.R-.AU | Application submitted | Not individually disclosed | 19 Aug 2026 | Previously announced |
| d 369 C.R-.AU | Application submitted | Not individually disclosed | 19 Aug 2026 | Previously announced |
| d 370 C.R-.AU | Application submitted | 517 km² | 4 Sep 2026 | Third application; BUIG Aug 2026 |
Note: Individual area figures for d 368 C.R-.AU and d 369 C.R-.AU are not disclosed in the announcement. The combined total across all three new applications and the existing C.R 150.AU Permit is approximately 1,650 km².
A map showing the d 370 C.R-.AU application area alongside the previously announced d 368 and d 369 application areas, adjacent to the C.R 150.AU Permit within the Terravecchia gas play, is included as Figure 1 in the ASX release.
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Why this matters for ADX investors
ADX is systematically assembling a large acreage position around a gas play that has now received independent technical validation. ADX holds a 100% interest in the existing C.R 150.AU Permit, retaining full exposure to any discovery upside on that permit without dilution from joint venture partners.
The near-term milestones to watch are the outcome of the three-month competition window and progress through the EIA process. Neither approval nor a drilling commitment has been made at this stage; these are process milestones on the path to potential exploration.
What the announcement does confirm is that ADX is moving quickly and consistently to expand its footprint in a basin with established producing analogues and documented gas shows in the target formation.
Beyond the Sicily Channel, ADX is running a parallel Austrian gas drilling program at the HOCH-1 prospect, giving the company two active exploration fronts in Europe and diversifying the near-term news flow beyond the Italian permit process.
Ready to Learn More About ADX Energy’s 1,650 km² Sicily Channel Gas Position?
ADX Energy is methodically assembling a large-scale acreage footprint across the Terravecchia biogenic gas play in the Sicily Channel, now totalling approximately 1,650 km² across four permits — all backed by independent technical validation from RISC Advisory confirming a recognised geological play in a proven European producing basin.
Explore the full details of the Sicily Channel Terravecchia gas play review, including the independently assessed 1,265 BCF resource potential, by visiting the ADX Energy discovery profile on Discovery Alert.